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Amazon's 1Q Revenue +34% But Profits -35%

Apr 26, 2012 6:59 PM   By Jeff Miller
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RAPAPORT... Amazon.com reported product sales increased 29 percent year on year to $11.25 billion for the three months that ended on March 31 and consolidated sales rose 34 percent to $13.19 billion. Operating expenses during this first quarter of the company's financial year jumped 36 percent to $13 billion. Net earnings fell 35 percent to $130 million or 28 cents per share. Sales from the company's North American operations jumped 36 percent to $7.43 billion while international sales rose 31 percent to $5.76 billion. 

The online superstore expects second-quarter sales to increase between 20 percent and 34 percent year on year, but operating income could register declines between 229 percent and 80 percent in part due to a $260 million stock-based compensation and amortization of intangible assets.

The company does not differentiate product segment sales, but Jeff Bezos, the founder of Amazon.com, explained that the company's Kindle business model is very successful. “I’m excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store – you won’t find them anywhere else. They include many of our top bestsellers – in fact, 16 of our top 100 bestselling titles are exclusive to our store,'' Bezos said.

Tags: Amazon, Jeff Miller, profits, sales
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