Friday, February 03, 2012

Amazon's 4Q Sales +35% But Profit -57%

Online retailer reported a strong fourth-quarter with revenue surging 35 percent year on year to $17.4 billion for the three months that ended on December 31. However, net income plunged 57 percent to $177 million. Product sales during the quarter rose almost 31 percent to $15.3 billion while business services increased 74 percent to $2.1 billion. Operating expenses, including cost of sales, marketing and fulfillment, rose 38 percent to $17.2 billion.

Jeff Bezos, Amazon's founder, said, ''Our millions of third-party sellers had a tremendous holiday season with 65 percent unit growth and now represent 36 percent of total units sold.''

Amazon's financial year reflected a 41 percent year on year increase in sales of $48.1 billion and profit fell 45 percent to $631 million.

Guidance for the company's first-quarter underway now suggests that net sales could increase 22 percent to 36 percent, but that operating income is expected to be between a loss of $200 million and a gain of $100 million. The guidance included approximately $200 million for stock-based compensation and amortization of intangible assets.

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