Apple Inc. announced unaudited consolidated earnings results for the first quarter ended December 31, 2016. For the quarter, the company reported net sales of $78,351 million against $75,872 million a year ago. Operating income was $23,359 million against $24,171 million a year ago. Income before provision for income taxes was $24,180 million against $24,573 million a year ago. Net income was $17,891 million or $3.36 per diluted share against $18,361 million or $3.28 per diluted share a year ago. Cash generated by operating activities was $27,056 million against $27,463 million a year ago. Payments for acquisition of property, plant and equipment was $3,334 million against $3,612 million a year ago. Payments for acquisition of intangible assets were $86 million against $394 million a year ago.

The company provided earnings guidance for its fiscal 2017 second quarter. The company expects revenue between $51.5 billion and $53.5 billion. This guidance range includes a $1.2 billion year-over-year headwind from foreign exchange. The company expects gross margin to be between 38% and 39%. This guidance range includes an 80 basis points sequential headwind from foreign exchange. The company expects OpEx to be between $6.5 billion and $6.6 billion. The company expects OI&E to be about $400 million, and the company expects the tax rate to be about 26%.