Printed from http://www.electronista.com

Amazon posts quarterly loss for first time in four years

updated 05:30 pm EDT, Thu October 25, 2012

Loss pinned on economic condition, high 'cloud computing' spending

Amazon reported lower-than-expected quarterly results on Thursday. The e-tailer cites the European debt crisis and recession for reduced consumer demand, and heavy spending on distribution warehouses and cloud-computing data centers for the loss. Prior to this quarter, Amazon had generated 18 straight quarters of gains.

The company said the third-quarter net loss was $274 million, or 60 cents a share, versus net income of $63 million, or 14 cents a share in the third quarter of fiscal year 2011. An impairment charge from Amazon's investment in LivingSocial was assessed this quarter, amplifying the magnitude of the loss. Amazon was expected to lose 8 cents a share in the third quarter with revenue of $13.9 billion. Compounding the loss, Amazon is forecasting next quarter's revenue lower than analysts' estimates.

"There's increased competition from mass merchants and big box retailers embedded in that guidance," said RJ Hottovy, equity analyst at Morningstar. "There's a lot of competition this holiday and it's not clear how this will play out, even for smart operators like Amazon."

Even with the loss, third-quarter revenue was $13.81 billion, up 27 percent from the previous year. Amazon's shares have fallen more than five percent to $211 in after-hours trading following the earnings announcement.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Cat B100

Cat is primarily known for its heavy-duty machinery used in the construction industry and farming, among other areas. What may not be ...

Linksys EA6900 AC Router

As 802.11ac networking begins to makes its way into more and more devices, you may find yourself considering an upgrade for your home ...

D-Link DIR-510L 802.11AC travel router

Having Internet access in hotels and other similar locations used to be a miasma of connectivity issues. If Wi-Fi was available, it wa ...

Sponsor

toggle

Most Commented

 
toggle

Popular News