Apple computers rode the popular iMac to another strong quarter, reporting yesterday a profit of $114 million before a one-time gain from the sale of stock.

The 69-cent-a-share profit from operations, up from 50 cents a year earlier, beat Wall Street consensus estimates of 64 cents. The company announced its first share buyback in seven years, with $500 million to be spent over an indefinite period.

"Apple is growing faster than the industry, driven by the continued success of iMac in our consumer and education markets," said interim chief executive, Mr Steve Jobs.

It was the seventh consecutive quarter of profits at California-based Apple, which had been all but given up for dead before Jobs' return.

Because component costs and retail prices for the finished product fall so rapidly in the computer industry, unsold goods depreciate and tie up capital. Apple said it has one day of inventory on hand, although the supply does back up further in stores.

Apple chief financial officer, Mr Fred Anderson, reassured some analysts concerned about possible delays in Apple's long-awaited portable computer, expected to be unveiled at an Apple trade show next week.

Revenue in the most recent period rose 11 per cent from a year earlier, to $1.56 billion. International sales provided 45 per cent of the total.