Online retailer Amazon.com has reported first quarter
2003 pro forma earnings that beat analyst expectations, citing
lowered costs and increased US and international
sales.
Amazon.com reported a first-quarter net loss of $10m
(£6.3m) compared with a loss of $23m in the first quarter of
2002.
The company said it had a net income of $40m (£25m) compared
with a net loss of $5m for the same quarter a year ago.
Net sales for the first quarter totalled $1.08bn (£680m), a 28%
increase from $847m for the same quarter last year.
Amazon.com said the strategy of driving down costs to give
customers lower prices paid off in making this quarter its first
non-holiday quarter in which it achieved sales over $1bn.
Revenue from North America grew 13% year-on-year, to $705m
(£444m), Amazon.com said.
The company's international sales, representing its UK, German,
French and Japanese sites, grew to $379m (£239m) in the first
quarter, up 45% from a year ago.
Operating income from the international segment was $16m (£10m),
a $27m increase and reversing a loss from the year-ago quarter, the
company said.
The results come on the heels of strong sales reported for the
fourth-quarter of 2002, which were pinned on thriving holiday and
international sales.
Amazon.com predicted second-quarter net sales of between $1bn
and $1.05bn, a year-on-year increase of between 24% and 30%. The
company expects second-quarter operating income of between $45m and
$60m.
For the full year 2003, Amazon.com expects net sales to total
$4.7bn (£2.9bn) or more, an increase of more than 19% compared with
the previous year.
The company expects operating income to be $275m (£173m) or
more, up more than 50% over the previous year.