Feeds

Amazon.com revenue rises 236 per cent

But Wall Street prophets shouldn't expect profits for a long time yet

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Amazon.com's sales continue to expand, but its profits remain elusive -- and the company warned they will continue to be so for some time. The Internet bookstore yesterday posted a first quarter 1999 loss of $61.7 million on revenues of $293.6 million, and increase of 236 per cent on the same period last year. Half of Amazon's loss was put down to the company's ongoing acquisition programme -- excluding such charges, its loss falls to $36.4 million, better but still significant. In Q1 1998, Amazon posted a loss of $10.4 million. Still, the revenue increase is impressive, doubly so since it's higher than the strong sales figures the company posted for its Christmas quarter: for Q4 1998, the company recorded revenues of $253 million. That suggests the company is winning business and winning it fast, though CFO Joy Covey predicted the growth rate would slow as the novelty of new lines, such as videos and gifts, begins to wear off. Covey also warned that losses will deepen "substantially" in coming quarters as Amazon continues to expand its own business by buying others. Losses for coming quarters would be in the order of $60-90 million, she said. The company's oft-stated goal is to offer "anything" online, to become the Internet's answer to Harrods (elephants, anyone?), and it can do that more quickly by spending money and making acquisitions. And given Amazon's inflated stock price and the very rapid turnover of its publicly traded shares, it's unlikely to have dividend-hungry shareholders beating on its door and demanding profits, at least for the foreseeable future. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.