Feeds

Amazon: Wow, look at this $17bn we made. Uh, oh wait, it's gone already

'Foreign exchange rates' blamed this time for $25m loss in Q3

Security for virtualized datacentres

Amazon has had another great quarter raking in huge revenues and, as usual, has reported a net loss as Bezos & Co poured the cash back into the company's business divisions.

The bookseller-turned-everything-seller said it racked up sales of $17.09bn for the third quarter of 2013, up a staggering 24 percent on the same period a year ago. This came in comfortably above the $16.76bn analysts had expected, and drove the company's shares up 7.5 per cent in after-hours trading.

As usual, the company failed to make a profit and reported an operating loss of $25m, compared with a net loss of $7m in the previous quarter. The company blamed this loss on an "unfavorable impact from year-over-year changes in foreign exchange rates."

In a canned statement Amazon chief exec Jeff Bezos summarized what his company has been up to in the past three months, and notably singled out Amazon Web Services's division's big contract win: building a cloud for CIA spies.

"It's been a busy few months – we launched a new Paperwhite and new Kindle Fires to positive reviews and surprised people with the revolutionary Mayday button—average Mayday response times are just 11 seconds!" Bezos said in a canned quote.

"And that’s not all. In the last 90 days, our AWS team got back to work on a big government contract."

Bezos also picked out 8 million square feet in new fulfillment centers; the deployment of Kiva robots to replace human workers add more warehouse automation capabilities; various initiatives by Amazon for authors and artists; and the hiring and training of some 70,000 new US employees for the punishing holiday season rush in the company's mammoth warehouses.

This laundry list of new projects, products, and schemes helps illustrate just why Amazon's shares perform so well when the internet giant reports so many losses: investors seem to think the company has room for expansion in many of its new markets, and for its part Amazon never shies away from entering a new industry and aggressively under-pricing the competition.

The Amazon Web Services division seems to be growing at a fast pace: the "other" category AWS is shoved into recorded whopping revenues of $1.011bn for the quarter compared with $648m a year ago.

This growth has been underpinned by a dramatic rise in capital expenditures that saw the company fork out $1.038bn in the quarter for purchases of property and equipment to build new data centers and fulfillment warehouses.

The company projected sales of between $23.5bn and $26.5bn for the fourth quarter of 2013, and warned of a potential operating loss of $500m or perhaps a profit of $500m. ®

Security for virtualized datacentres

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
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
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
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

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.
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.
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?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.