Feeds

Amazon profits fall push shares down

Sales up but profits down

Intelligent flash storage arrays

Amazon shares fell sharply in after hours trading after the retail giant posted a big drop in profits.

Net sales grew 22 per cent to $2.14bn in the second quarter ended 30 June 2006, but operating income fell 55 per cent to $47m. Changes to accounting for foreign currency made up for $24m of the shortfall.

Amazon CEO Jeff Bezos talked up the shop's membership scheme - Amazon Prime - where users pay $79 for a year's worth of free shipping. Bezos also said investment in technology would slow.

"We're looking forward to the coming decrease in our year-over-year growth rates in technology spending in the second half of 2006."

The US still makes up the bulk of sales - $1.16bn, while the UK, Germany, Japan, France and China sold $982m worth of books.

Amazon started selling groceries during the period - the US site carries 14,000 dry goods. The cost of outbound shipping grew 28 per cent to $188m - the company expects shipping costs to continue to grow.

More details from Amazon here. ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
The Heartbleed Bug: how to protect your business with Symantec
What happens when the next Heartbleed (or worse) comes along, and what can you do to weather another chapter in an all-too-familiar string of debilitating attacks?