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Amazon.com Loses $43 Million in Q2

July 22, 2003

SEATTLE (AP) _ Amazon.com Inc. narrowed its net loss for the second quarter, as free shipping and discounting policies helped the Seattle-based Internet retailer exceed analysts’ forecasts and raise its projections for the year.

For the April-June quarter, Amazon.com lost $43 million, or 11 cents a share, compared to $94 million, or 25 cents a share for the same period a year ago. Quarterly revenue was $1.1 billion, up 37 percent from $806 million last year.

Excluding certain noncash items, the company earned $42 million, or 10 cents a share, compared to a loss of $4 million, or a penny a share last year.

Based on those figures, the company beat the consensus estimate from analysts polled by Thomson First Call of a profit of 6 cents a share on revenue of $1.03 billion.

``Amazon.com customers continue to respond in record numbers to our everyday low prices and free shipping,″ said Tom Szkutak, Amazon.com’s chief financial officer.

Amazon.com shares fell 46 cents to close a share to $34.87 on the Nasdaq Stock Market before the earnings report. Shares jumped $2.04, nearly 6 percent, in extended trading.

The company noted that the number of products it sold increased by 42 percent in the quarter. Those sales included its release of more than 1.4 million copies of the latest ``Harry Potter″ book.

The company raised its sales guidance for the full year, saying it expects revenue to be between $4.9 billion and $5.1 billion. It expects operating income to be between $215 million and $255 million.

For the six months ended June 30, Amazon.com reported a net loss of $53.4 million, or 14 cents a share, compared to a loss of $117 million, or 31 cents a share last year. Revenue was $2.18 billion, compared to $1.65 billion for the year-ago period.

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