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

The Power of One Infographic

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. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.