iMac keeps Apple quarter buoyant

Apple is expected to show that it is continuing its resurgence in the wake of last year's iMac release when it issues its second-quarter results during the next two weeks.

The vendor said it expected to improve on sales of $1.4 billion in 1998, with 650,000 unit shipments recorded in the second quarter. However, sales will fall short of the $1.71 billion achieved in the first quarter of Apple's fiscal year, ended 31 December 1998, according to Apple's filing with the US Securities and Exchange Commission.

Apple also warned it expected a decline in gross margins due to lower sales of MacOS upgrades and pricing pressure.

The second-quarter results will also include a $9 million charge for manufacturing efficiencies that stem from shifting the final assembly of certain products to OEMs.

Offsetting the costs will be a $55 million pre-tax gain from the sale of two million shares in ARM, leaving Apple with a 14.9 per cent stake in the UK chip vendor. Operating expenses declined by as much as $45 million in the quarter.