Sales jump 37% to $2.35B.

Apple Computer posted its highest fourth-quarter revenue in nearly a decade, as sales were driven in part by strong demand for the iPod digital music player.

Revenue for the quarter was $2.35 billion -- up 37% from a year ago. Profits more than doubled to $106 million, or 26 cents per share.

Apple reports that it shipped just over 2 million iPods during the quarter -- a 500% increase from the fourth quarter of last year and a 134% improvement over the number of iPods sold in the third quarter of 2004. iPod revenues for the quarter totaled $537 million.

Revenues from the iTunes Music Store and related iPod services and accessories totaled $98 million -- a 600% year-over-year increase and a 34% improvement over the third quarter of 2004.

For the fiscal year, Apple reports net income of $276 million on revenue of $8.28 billion. That's up from net income of $69 million on revenue of $6.21 billion in fiscal 2003.

Shares in the company closed up 3.8% at $39.75 ahead of this afternoon's announcement.