CUPERTINO, Calif., July 16 -- Apple today announced financial results for its fiscal 2002 third quarter ended June 29, 2002. For the quarter, the Company posted a net profit of $32 million, or $.09 per diluted share. These results compare to a net profit of $61 million, or $.17 per diluted share, in the year ago quarter. Revenues for the quarter were $1.43 billion, down 3 percent from the year ago quarter, and gross margins were 27.4 percent, down from 29.4 percent in the year ago quarter. International sales accounted for 42 percent of the quarter's revenues. Apple shipped 808 thousand Macintosh units during the quarter, down 2 percent from the year ago quarter. "Even in this extended worldwide downturn, Apple is continuing to be profitable and continuing to innovate," said Steve Jobs, Apple's CEO. "We're working hard to attract new customers with our 'Switchers' advertising campaign and our 31 retail stores, and we're continuing to invest in a strong slate of new products, some of which we'll talk more about at Macworld New York tomorrow." "Despite the slowdown in the market, our operational efficiency was excellent," said Fred Anderson, Apple's CFO. "Our balance sheet is very strong, with $4.3 billion in cash, and we achieved a very efficient cash conversion cycle of -36 days. We expect September quarter revenues to be approximately flat with the June quarter, and expect a slight profit for the quarter before any non-recurring items."