Amazon reports meagre second quarter income

Amazon has reported second quarter income of just $7m, down 96% compared with the same period last year

Amazon has reported second quarter income of just $7m, down 96% compared with the same period the year before.

The company blamed the fall on an estimated $65m loss from its acquisition and integration of robot-maker Kiva systems in a $775m deal in March.

Kiva Systems makes robot technology to automate warehouses, which Amazon hopes will eventually boost its productivity and profitability.

Amazon reported that net sales increased 29% to $12.83bn, compared with $9.91bn in the second quarter of 2011, an increase of nearly 30%.

But this fell short of analyst predictions. The company blamed this on the strong dollar, which made its products more expensive in Europe and other key markets.

Despite Amazon warning that it expects to make a loss of between $50m and $350m in the current third quarter, the company's shares rose 1.2% in after-hours trading, according to the BBC.

CW+

Features

Enjoy the benefits of CW+ membership, learn more and join.

Read more on E-commerce technology

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close