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Tue July 26 2011 16:07:58

Amazon Q2 Sales up 51 Percent to $9.91 Billion

By: Ina Steiner

Sponsored Link

Amazon.com's conference call with analysts is at 5:00 pm EST today, here is the company's press release announcing first quarter 2011, you can view the full release with tables on the Amazon.com investor website.

See Wednesday's EcommerceBytes Newsflash story here.

Amazon.com Announces Second Quarter Sales up 51% to $9.91 Billion
SEATTLE-Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its second quarter ended June 30, 2011.

Operating cash flow increased 25% to $3.21 billion for the trailing twelve months, compared with $2.56 billion for the trailing twelve months ended June 30, 2010. Free cash flow decreased 8% to $1.83 billion for the trailing twelve months, compared with $1.99 billion for the trailing twelve months ended June 30, 2010.

Common shares outstanding plus shares underlying stock-based awards totaled 468 million on June 30, 2011, compared with 465 million a year ago.

Net sales increased 51% to $9.91 billion in the second quarter, compared with $6.57 billion in second quarter 2010. Excluding the $477 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 44% compared with second quarter 2010.

Operating income was $201 million in the second quarter, compared with $270 million in second quarter 2010. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $28 million.

Net income decreased 8% to $191 million in the second quarter, or $0.41 per diluted share, compared with net income of $207 million, or $0.45 per diluted share, in second quarter 2010. Second quarter 2011 net income was positively impacted by equity-method investment activity of $15 million, including a $49 million gain on the sale of an equity position partially offset by $34 million in losses from equity-method investments.

“Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we’ve seen in over a decade,” said Jeff Bezos, founder and CEO of Amazon.com. “Kindle 3G with Special Offers has quickly become our bestselling Kindle at only $139. Customers love the convenience of a 3G reader — no hunting for or paying for Wi-Fi hotspots. Amazon picks up the tab for the 3G wireless, so you have no monthly payments or annual contracts.”

Highlights

    * Sales growth of Kindle devices accelerated in second quarter 2011 compared to first quarter 2011.

    * Since AT&T agreed to sponsor screensavers, Kindle 3G with Special Offers is now our bestselling Kindle device – at only $139. With Kindle 3G, there’s no wireless set up and no paying or hunting for Wi-Fi hotspots. Kindle 3G’s always-on global wireless connectivity means that wherever you are, you can download books and periodicals in less than 60 seconds and start reading instantly. Amazon pays for Kindle’s 3G wireless connectivity, which means the convenience of 3G comes with no monthly fees, data plans or annual contracts.

    * Amazon.com announced the launch of Kindle Textbook Rental, offering students savings of up to 80% off textbook list prices. Tens of thousands of textbooks are available for the 2011 school year. In addition, Kindle Textbook Rental offers the ability to customize rental periods to any length between 30 and 360 days, so students only pay for the specific amount of time they need a book.

    * The U.S. Kindle Store now has more than 950,000 books, including New Releases and 110 of 111 New York Times Bestsellers. Over 800,000 of these books are $9.99 or less, including 65 New York Times Bestsellers. Millions of free, out-of-copyright, pre-1923 books are also available to read on Kindle.

    * The Company launched MyHabit.com, a membership-only fashion destination offering up to 60 percent off list prices of designer and boutique brands in women’s, men’s and children’s departments, with the convenience of free, instant membership; fast, free shipping and free return shipping in the U.S. on eligible items; and fast, $15 international shipping.

    * Amazon.com announced that customers will be able to stream TV shows from CBS’s vast library. Amazon Prime customers will be able to instantly watch thousands of episodes from the CBS library at no additional cost to their membership. With the deal, Amazon will add 2,000 episodes to grow the total number of Prime instant videos to more than 8,000 movies and TV shows. Starting this summer, dozens of CBS shows will also become available to Amazon Instant Video customers.

    * The Company announced three enhancements to Amazon Cloud Drive and Cloud Player: storage plans that include unlimited space for music, free storage for all Amazon MP3 purchases and Cloud Player for Web, now on iPad.

    * Amazon announced that Marketplace sellers can list their products across all its European websites using just one single seller account, allowing sellers to make their inventory available across Amazon.co.uk, Amazon.de, Amazon.fr and Amazon.it. Customers benefit from access to millions of additional products. Fulfillment by Amazon (FBA) sellers can now also store their products in an Amazon fulfillment center in one country and offer them for sale across all of Amazon’s European websites.

    * North America segment sales, representing the Company’s U.S. and Canadian sites, were $5.41 billion, up 51% from second quarter 2010.

    * International segment sales, representing the Company’s U.K., German, Japanese, French, Chinese and Italian sites, were $4.51 billion, up 51% from second quarter 2010. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 36%.

    * Worldwide Media sales grew 27% to $3.66 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 20%.

    * Worldwide Electronics and Other General Merchandise sales grew 69% to $5.89 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 62%.

    * Amazon Web Services (AWS) and SAP announced that AWS has been certified as a global technology partner of SAP. Customers can now deploy a variety of SAP solutions in full production environments including SAP® Rapid Deployment and SAP® BusinessObjects™.

    * AWS announced the availability of Amazon Relational Database Service (RDS) for Oracle databases, allowing customers to easily set up, operate and scale fully managed Oracle databases in the cloud.

    * AWS lowered prices for the fifteenth time in four years by eliminating inbound Internet data transfer costs and reducing outbound data transfer costs.

Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of July 26, 2011. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce and the various factors detailed below.

Third Quarter 2011 Guidance
    * Net sales are expected to be between $10.3 billion and $11.1 billion, or to grow between 36% and 47% compared with third quarter 2010.

    * Operating income is expected to be between $20 million and $170 million, or between 93% decline and 37% decline compared with third quarter 2010.

    * This guidance includes approximately $180 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.

A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will be available for at least three months at www.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company's financial and operating results.




Comments (13) | Permalink

Readers Comments

Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

This user has validated their user name. by: Philip Cohen
Web Site

Tue Jul 26 17:45:21 2011

"Amazon.com Announces Second Quarter Sales up 51% to $9.91 Billion"

Oh, dear me, ...

But don't worry, PreyPal to the rescue, the Ho is going to give those greedy banks a run for their money at B&M POS.

Now, why on Earth would any B&M merchant want the clunky, unprofessional PreyPal at POS? The idea that PreyPal could ever hope to even minutely threaten the existing EFTPOS system or Visa/MasterCard at POS is simply ludicrous.

What can one say about this latest naive pipe dream of Scotty’s and the Ho's other than “beam me up, Scotty/John”.

Enron / eBay / PayPal / Donahoe: Dead Men Walking.

Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

by: Departing seller

Tue Jul 26 18:48:31 2011

No surprise from where I sit.

After eBay's 'Slaughter the Seller' campaign a few years ago, I registered with Amazon and built a very hefty inventory within their catalog.

I make enough Amazon sales now to consider eBay a mere distraction.

But I have to admit, I still use eBay's petty 50 free listings per month offering.

Anyway, I'm glad I made the move.
And I imagine there are a few others out there feeling the same as I do.

Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

by: Digbyd
Web Site

Tue Jul 26 19:29:58 2011

@Philip

Why do you always bring every posting down to You Hate Paypal ?

I had a guy pay me $200 for some stuff from the UK to me in New Zealand, Nothing to do with ebay or any auction site. It cost us $5.00 and I got the money right away.

God knows what the "banks" would have charged us for that.

100 million people use Paypal. (just not you)

Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

This user has validated their user name. by: Philip Cohen

Tue Jul 26 20:57:12 2011

So Digbyd, which bit about my previous post, in your opinion, does not gel?

You do realize that PreyPal is little more than a marketing operation—a house of cards, and that nearly everything PreyPal does is done through those same banks' payments systems; you know that, do you?

If you want to know why I dislike both eBay and PreyPal you can start at:

“All anyone needs to know about the clunky PayPal”, at:

http://forums.auctionbytes.com/vbulletin/showthread.php?p=165263

And then move onto:

“What all buyers should know about eBay’s effective criminal facilitation of shill bidding fraud on eBay”, at:  

http://forums.auctionbytes.com/vbulletin/showthread.php?t=23013>
Enron
/ eBay / PayPal / Donahoe: Dead Men Walking.

Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

by: pete

Tue Jul 26 21:55:33 2011

i would like to say a very big THANKYOU to eBay without your constant bull & headaches over the past 9 years we would never have been forced to move over to "try" Amazon...it's the best thing we could have done; we are now making serious PROFIT (eBay sellers do you remember that word?)

eBay kiss my .......

Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

by: buck efay

Tue Jul 26 22:10:13 2011

Agreed with above posters, my life is less complicated & spend FAR FAR Less every month, thanks to that IDIOT Donahoe ruining Ebay:) Switched over to buying mostly media, over 5000 listings on Amazon driving sales EVERY day, saving my rare toy/collectible stuff for Ecrater & Bonanza & giving ebay only my 50 freebies a month. So much easier than paying Ebay $2000 a month for headaches & annoyances. Thanks JD for ruining ebay, you did us a favor! Save your money on those sales calls you still make trying to get this former silver powerseller with 20K+ pos fbs back. Buck efay!

Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

by: Digby
Web Site

Tue Jul 26 22:15:21 2011

Yes if you read through Ina report, it seems that Amazon are up about 20% in general merchandise sales on last year.

That is pretty good to me.

It would be nice if they would say how many kindles they have sold.



Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

by: Rich

Thu Jul 28 02:19:10 2011

Amazon continues to crush Ebay.  And Ebay learns nothing as they continue to chase away thousands of great buyers and sellers month after month

Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

by: Joe Average

Thu Jul 28 03:52:46 2011

Uhm, so now we know why eBay has been so dead these past months?

I mean it has been slow for a few years now, but these past few months feeling a pulse has become really difficult.

I reckon Tommy Hilfiger and ToysRUs are not filing the void left by all those cool niche sellers who used to inhabit eBay?

Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

by: cachelot

Thu Jul 28 09:00:31 2011

Jeff should send John a HUGE basket of flowers, thanking him profusely for being such an idiot.  Like many other small business', we moved to Amazon when eBay was no longer allowing us to meet our small business profit margins.  It was the best move we ever made.  Last years 4th quarter sales AND profits were higher than we ever had on eBay.  

Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

by: BOWHUNTER

Thu Jul 28 13:39:12 2011

9.91 BILLION--A small part of this is the money that I now spend at AMAZON and no longer at ebay.AMAZON doesn't require me to have a pay-pal account to buy even though I pay with a visa card as ebay does.I have no trouble with AMAZON whatsoever.ebay sellers please be aware that the dumb policys at ebay are costing you in sales.In the final judgment all will stand before *GOD* including CEO'S ---GOOD LUCK TO YOU-----

Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

by: the dude

Sun Aug 7 21:16:09 2011

Years back, compared to eBay, Amazon used too seem like a little bit more of a hassle; but, they haven't constantly & exponentially made their site harder and harder to sell on practically every single month like eBay has. I can't believe people still put up with all of the eBay nonsense; esp. when they have Amazon available to them (which is a much more professional and reasonable place all-around).  I'm convinced that eBay is truly run by some huge retail conglomerate, who wants to destroy all small sellers because they bring too much competition to them.

Amazon Q2 Sales up 51 Percent to $9.91 Billion   Amazon Q2 Sales up 51 Percent to $9.91 Billion

by: Med
Web Site

Wed Aug 10 11:37:52 2011

Another great aspect of Amazon is that it ships almost to every part of the world. While eBay neglects so called "third world countries".



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