Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News

      Amazon Reports A Surprise Profit

      By
      Dennis Callaghan
      -
      January 22, 2002
      Share
      Facebook
      Twitter
      Linkedin

        On the same day when bricks-and-mortar retailer Kmart filed for bankruptcy, top online retailer Amazon.com Inc. announced its first profit.

        Amazon on Tuesday declared it had turned a $5 million net profit on $1.12 billion in revenues in the fourth quarter of 2001. That exceeded even the most optimistic expectations for the Seattle-based company, which had given guidance to investors—and had set a goal—that it would turn only an operating profit for the first time in the quarter.

        An operating profit (unlike a net profit) does not take into account interest expenses, a significant outlay for Amazon, which is under a mountain of debt after running up staggering losses as it has built its brand. The company paid $35.3 million in interest in the quarter.

        In the same quarter a year ago, Amazon lost $545.1 million on $972.4 million in revenue.

        Amazon also announced that effective today, it will offer free shipping on all orders over $99.

        “There are two types of retailers: those that work hard to raise prices and those that work hard to lower prices,” said Jeff Bezos, founder and CEO of Amazon. “Though both models can be successful, weve decided to relentlessly follow the second model.”

        Amazon, long known for low prices, at one time sold nearly all its products at a loss to win customers.

        “Our improvements in productivity allowed us to lower book prices and now allow us to offer free shipping, said Warren Jenson, chief financial officer. “We expect that these money-saving initiatives for customers will continue to play an important role in our growth.”

        Amazons streak of profitable quarters may end at one, however. For the first quarter of 2002, it expects a pro forma loss—not taking into account interest expenses and other charges—of up to $16 million.

        Despite the strong fourth quarter, for the full year 2001, Amazon posted a net loss of $567.3 million on $3.1 billion in revenue.

        Dennis Callaghan

        MOST POPULAR ARTICLES

        Cybersecurity

        Visa’s Michael Jabbara on Cybersecurity and Digital...

        James Maguire - May 17, 2022 0
        I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
        Read more
        Cloud

        Yotascale CEO Asim Razzaq on Controlling Multicloud...

        James Maguire - May 5, 2022 0
        Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
        Read more
        Big Data and Analytics

        GoodData CEO Roman Stanek on Business Intelligence...

        James Maguire - May 4, 2022 0
        I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
        Read more
        Applications

        Cisco’s Thimaya Subaiya on Customer Experience in...

        James Maguire - May 10, 2022 0
        I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
        Read more
        IT Management

        Intuit’s Nhung Ho on AI for the...

        James Maguire - May 13, 2022 0
        I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
        Read more
        Logo

        eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

        Facebook
        Linkedin
        RSS
        Twitter
        Youtube

        Advertisers

        Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

        Advertise with Us

        Menu

        • About eWeek
        • Subscribe to our Newsletter
        • Latest News

        Our Brands

        • Privacy Policy
        • Terms
        • About
        • Contact
        • Advertise
        • Sitemap
        • California – Do Not Sell My Information

        Property of TechnologyAdvice.
        © 2021 TechnologyAdvice. All Rights Reserved

        Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

        ×