Feeds

Amazon braces for the Grinch at Christmas - or not

There may be trouble ahead

Intelligent flash storage arrays

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
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.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.