Amazon delivers shipshape Q2

No nasty surprises this time

Amazon.com reported higher sales, but slightly lower net income in its 2Q 2005 earnings statement.

Net profit was $52m, down from $76m a year ago, largely because of a tax bill. Sales were up 26pc from the same time last year at $1.75bn for the quarter. But investors were cheered because revenue growth is outpacing the cost of those sales, leading to a higher gross margin.

For the full year, Amazon.com issued guidance of between $8.275bn and $8.675bn gross revenue, 20pc to 25pc up on 2004, and operating income in line or slightly up on last year at $415m to $515m.

Third party sales now account for 28pc of Amazon's revenue.

The company ended the quarter with a cash pile of $629m, so in the dog-eat-dog word of retail consolidation Amazon looks less like a predator and more like a tasty snack. ®

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