Feeds

Amazon braces for the Grinch at Christmas - or not

There may be trouble ahead

Business security measures using SSL

Amazon.com had a decent third quarter but has scared investors by giving an almost absurdly broad estimate of fourth quarter revenues and profits.

Amazon made sales of $4.26bn - up 31 per cent - in the three months ended 30 September 2008, just missing Wall Street targets. Operating income was up 26 per cent to $154m, while net income increased 48 per cent to $118m. The net figure included a foreign currency related net benefit of $15m.

But in predicting performance in the fourth quarter, when Amazon would usually make the lion's share of its profits, the company said uncertainties around exchange rates and the state of the global economy and consumer spending made accurate predictions difficult.

Amazon said it expects sales of between $6bn and $7bn with operating income anywhere between $145m and $305m - either a 46 per cent drop or a 13 per cent hike in profits. But there were hopes that Amazon would benefit from cash-concerned consumers moving online to find bargains.

Few doubt that most of developed economies are headed to a recession. But Amazon's extremely broad take on how its business might be affected appears to have spooked investors, and shares in the online bookseller fell 14 per cent.

For the full year the company expects revenues of between $18.46bn and $19.46bn - between 24 per cent and 31 per cent up on 2007, but short of Wall Street estimates. Operating income should be between $716m and $876m. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.