OS X operating system has boosted profits

"It was a great new product quarter and there's still more to come," said Apple chief executive Steve Jobs.

New products

An ultra-thin titanium notebook computer and an upgrade of its operating system were key factors that helped spur the turnaround.

The company said it had shipped 751,000 Macintosh units during the three months ending 31 March.

Looking ahead, Apple also said it was targeting revenues of between $3.2bn and $3.4bn in the next two quarters.

It said it saw improvements in both revenues and profits in both quarters.

But that was still a downgrade from the company's January forecast - of $6bn in sales for the full year.

"You know, Apple is doing extremely well compared to a lot of companies round here like Cisco. We are not having layoffs and we're doing quite well, but I think it is prudent to be conservative," the company's chief financial officer Fred Anderson told Reuters.

Profits warnings

Last September, Apple warned that its earnings for that quarter would fall short of expectations, prompting a nearly 50% dive in its share price.

The downward trend continued. In the three months ending December 2000, the company reported a net loss in profits of $247m, or 73 cents a share.

But Apple shares have risen about 60% this year. They were $2.27 higher at $25.06 in afternoon trading on Thursday.