Amazon Posts Big Loss, Promises an Improvement
Amazon.com Inc. on Wednesday posted a wider fourth-quarter loss that was in line with expectations. The company promised an improved financial performance this year.
The online retailing giant said its pro forma net loss was $185 million, or 55 cents a share, in the latest quarter, compared with a loss of $22 million, or 7 cents a share, in the same period a year ago.
Including goodwill stemming from investments, Amazon said its loss was 48 cents a share, in line with the average analyst estimate compiled by Wall Street tracking firm First Call/Thomson Financial. Estimates ranged from a loss of 43 cents to 55 cents on First Call.
Sales nearly tripled, to $676 million from $253 million, fueled by strong sales at Amazon’s electronics store over the holidays.
Shares in Amazon jumped $6.56, more than 9%, to $76 in after-hours trading, after closing up $2 at $69.44 on Nasdaq.
Chief Financial Officer Warren Jenson said Amazon, which has lost money since it was founded six years ago, turned a profit in its original business line of selling books.
The division, which has since been joined by sections selling music, videos, electronics, toys and home improvement products, and hosting auctions, is expected to be profitable this year, Jenson said.
Amazon said it added 3.8 million customer accounts in the quarter, bringing its total to more than 16.9 million at the end of last year, more than doubling the 6.2 million from a year earlier.
At a Glance
Other technology-related earnings, excluding one-time gains or charges unless noted, include:
* Next Level Communications Inc. reported a fourth-quarter loss of $16 million, or 21 cents a share, excluding stock-option compensation costs, compared with a loss of $21.4 million, or 28 cents, a year ago. Analysts expected a deeper loss of 23 cents from the Rohnert Park, Calif.-based maker of equipment that delivers high-speed online services over ordinary phone lines. Sales rose 11.5% to $25.2 million.
* Qwest Communications International Inc., said fourth-quarter earnings nearly tripled to $29.4 million, or 4 cents a share, matching estimates, from $10.4 million, or 1 cent, a year ago. Revenue jumped 34% to $1.16 billion, fueled by demand for hosting other companies’ Internet sites. Data-services sales more than doubled. The long-distance telephone company, which is merging with US West Inc., also benefited from lower costs. The 1998 figures include results from companies Qwest acquired last year.
