 Printer-friendly view | | << Back | | Amazon.com Announces Third Quarter Financial Results -- Net Sales up 24% Year over Year -- Expects Record Holiday Season |  | SEATTLE--(BUSINESS WIRE)--Oct. 24, 2006--Amazon.com, Inc.
(NASDAQ:AMZN) today announced financial results for its third quarter
ended September 30, 2006.
Operating cash flow declined 11% to $587 million for the trailing
twelve months, compared with $661 million for the trailing twelve
months ended September 30, 2005. Free cash flow decreased 23% to $366
million for the trailing twelve months, compared with $475 million for
the trailing twelve months ended September 30, 2005, driven primarily
by our increased expenditure in technology and content.
Common shares outstanding plus shares underlying stock-based
awards outstanding totaled 435 million at September 30, 2006, compared
with 438 million a year ago. During the quarter, the Company
repurchased 8 million shares, or $252 million under its previously
announced authorization to repurchase up to $500 million of the
Company's common stock.
Net sales increased 24% to $2.31 billion in the third quarter,
compared with $1.86 billion in third quarter 2005. Excluding the $20
million favorable impact from year-over-year changes in foreign
exchange rates throughout the quarter, net sales grew 23% compared
with third quarter 2005.
Operating income decreased 28% to $40 million in the third
quarter, compared with $55 million in third quarter 2005. The decline
in operating income was mainly due to technology and content
investments. Third quarter 2005 operating income included a negative
impact of $40 million relating to a patent litigation settlement.
Net income was $19 million in the third quarter, or $0.05 per
diluted share, compared with net income of $30 million, or $0.07 per
diluted share in third quarter 2005.
"We're pleased with the strong revenue growth and rapid adoption
of Amazon Prime," said Jeff Bezos, founder and CEO of Amazon.com. "We
look forward to seeing significant sequential improvement in operating
leverage this Q4, even as we continue to invest in many initiatives
including new retail categories, seller platforms, web services, and
digital."
Amazon Prime continues to demonstrate strong quarter-to-quarter
sequential growth for new memberships. Amazon Prime, Amazon.com's
first-ever membership program, was introduced in February 2005. For a
flat membership fee of $79 per year, Amazon Prime members get
unlimited, express two-day shipping for free, with no minimum purchase
requirement on over a million eligible items sold by Amazon.com.
Members can order as late as 6:30 p.m. ET and still get their order
the next day for only $3.99 per item, and they can share the benefits
of Amazon Prime with up to four family members living in their
household. Sign up for Amazon Prime at www.amazon.com/prime.
Highlights
- North America segment sales, representing the Company's U.S.
and Canadian sites, were $1.26 billion, up 21% from third
quarter 2005.
- International segment sales, representing the Company's U.K.,
German, Japanese, French and Chinese sites, were $1.05
billion, up 29% from third quarter 2005. Excluding the
favorable impact from year-over-year changes in foreign
exchange rates throughout the quarter, International net sales
growth was 26%.
- Worldwide Electronics & Other General Merchandise grew 43% to
$699 million in third quarter 2006, and increased to 30% of
worldwide net sales compared with 26% in third quarter 2005.
- The Company launched Amazon Unbox, a digital video download
service offering customers thousands of television shows,
movies and other video content from more than 30 studio and
network partners from Hollywood and around the world. Amazon
Unbox continues to add selection with the addition of
Showtime(R) premium programming in October.
- Amazon Business Solutions launched in beta WebStore by Amazon
and Fulfillment by Amazon, giving small and medium-sized
businesses access to Amazon's order fulfillment, customer
service, customer shipping offers and underlying website
technology.
- Amazon Web Services launched Amazon Elastic Compute Cloud
(Amazon EC2) in limited public beta. Amazon EC2 is a web
service that provides resizable compute capacity, making
web-scale computing easier for developers. Just as Amazon
Simple Storage Service (Amazon S3) enables "storage" in the
cloud, Amazon EC2 enables "compute" in the cloud. Developers
continue to adopt Amazon's web services -- over 200,000 have
registered to date, up greater than 60% year-over-year.
- Amazon's Japan website -- Amazon.co.jp -- launched its Health
& Beauty store, offering customers a selection of over 35,000
items in 12 categories including supplements, drinking water
and soft drinks, condiments, processed foods and health foods,
as well as cosmetics and products for bath care, nursing care
and aroma relaxation.
- The Company announced its Automotive Parts & Accessories store
on www.amazon.com, featuring over one million automotive
products offered by Amazon and leading mass market and
specialty retailers. Amazon's innovative Part Finder allows
owners of approximately 10,000 different car and truck models
to find the correct replacement parts, performance parts or
accessories for their vehicles.
Financial Guidance
The following forward-looking statements reflect Amazon.com's
expectations as of October 24, 2006. Results 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.
Fourth Quarter 2006 Guidance
- Net sales are expected to be between $3.625 billion and $3.950
billion, or to grow between 22% and 33% compared with fourth
quarter 2005.
- Operating income is expected to be between $145 million and
$235 million, or between (12%) decline and 43% growth,
compared with fourth quarter 2005. This guidance includes $35
million for stock-based compensation and amortization of
intangible assets, and it assumes, among other things, that no
additional intangible assets are recorded and that there are
no further revisions to stock-based compensation estimates.
Full Year 2006 Guidance
- Net sales are expected to be between $10.350 billion and
$10.675 billion, or to grow between 22% and 26% compared with
2005.
- Operating income is expected to be between $339 million and
$429 million, or between (22%) decline and (1%) decline,
compared with 2005. This guidance includes $113 million for
stock-based compensation and amortization of intangible
assets, and it assumes, among other things, that no additional
intangible assets are recorded 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.
These forward-looking statements are inherently difficult to
predict. Actual results could differ materially for a variety of
reasons, including, in addition to the factors discussed above, the
amount that Amazon.com invests in new business opportunities and the
timing of those investments, the mix of products sold to customers,
the mix of net sales derived from products as compared with services,
competition, management of growth, potential fluctuations in operating
results, international growth and expansion, the outcomes of legal
proceedings and claims, fulfillment center optimization, risks of
inventory management, seasonality, the degree to which the Company
enters into, maintains and develops commercial agreements,
acquisitions and strategic transactions, payments risks, and risks of
fulfillment throughput and productivity. Other risks and uncertainties
include, among others, risk of future losses, significant
indebtedness, system interruptions, consumer trends, limited operating
history, government regulation and taxation, fraud, and new business
areas. More information about factors that potentially could affect
Amazon.com's financial results is included in Amazon.com's filings
with the Securities and Exchange Commission, including its Annual
Report on Form 10-K for the year ended December 31, 2005, and all
subsequent filings.
About Amazon.com
Amazon.com, Inc., (Nasdaq:AMZN), a Fortune 500 company based in
Seattle, opened on the World Wide Web in July 1995 and today offers
Earth's Biggest Selection. Amazon.com, Inc. seeks to be Earth's most
customer-centric company, where customers can find and discover
anything they might want to buy online, and endeavors to offer its
customers the lowest possible prices. Amazon.com and other sellers
offer millions of unique new, refurbished and used items in categories
such as health and personal care, jewelry and watches, gourmet food,
sports and outdoors, apparel and accessories, books, music, DVDs,
electronics and office, toys and baby, and home and garden.
Amazon and its affiliates operate websites, including
www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp,
www.amazon.fr, www.amazon.ca, and www.joyo.com.
As used herein, "Amazon.com," "we," "our" and similar terms
include Amazon.com, Inc., and its subsidiaries, unless the context
indicates otherwise.
AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Three
Months
Ended Nine Months Twelve Months
September Ended Ended
30, September 30, September 30,
----------- --------------- --------------
2006 2005 2006 2005 2006 2005
----- ----- ------- ------- ------ -------
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD $683 $629 $1,013 $1,303 $600 $746
OPERATING ACTIVITIES:
Net income 19 30 93 160 292 507
Adjustments to reconcile
net income to net cash
from operating activities:
Depreciation of fixed
assets, including
internal-use software
and website development,
and other amortization 63 30 146 85 182 106
Stock-based compensation 30 26 71 71 87 90
Other operating expense 2 - 9 3 13 (3)
Losses (gains) on sales
of marketable
securities, net (3) - (2) - (4) -
Remeasurements and other (1) (6) (10) (38) (14) (6)
Non-cash interest expense
and other 1 1 3 4 4 5
Deferred income taxes 7 23 15 116 (31) (128)
Cumulative effect of
change in accounting
principle - - - (26) - (26)
Changes in operating assets
and liabilities:
Inventories (218) (76) (155) 10 (269) (98)
Accounts receivable, net
and other current assets (53) (12) 13 6 (77) 14
Accounts payable 252 147 (187) (224) 312 201
Accrued expenses and
other current
liabilities 27 (6) (44) (72) 87 (3)
Additions to unearned
revenue 39 28 131 95 192 120
Amortization of
previously unearned
revenue (35) (32) (125) (87) (187) (118)
----- ----- ------- ------- ------ -------
Net cash provided by
(used in) operating
activities 130 153 (42) 103 587 661
INVESTING ACTIVITIES:
Purchases of fixed assets,
including internal-use
software and website
development (62) (76) (166) (149) (221) (186)
Acquisitions, net of cash
acquired (2) (4) (30) (24) (30) (24)
Sales and maturities of
marketable securities and
other investments 438 163 975 653 1,159 1,072
Purchases of marketable
securities (227) (289) (589) (1,027) (947) (1,475)
----- ----- ------- ------- ------ -------
Net cash provided by
(used in) investing
activities 147 (206) 190 (547) (39) (613)
FINANCING ACTIVITIES:
Proceeds from exercises of
stock options 4 21 17 38 36 55
Excess tax benefit on stock
awards 9 2 38 4 43 4
Common stock repurchased (252) - (252) - (252) -
Proceeds from long-term
debt and other 13 13 81 13 81 13
Repayments of long-term
debt and capital lease
obligations (42) (6) (376) (272) (376) (272)
----- ----- ------- ------- ------ -------
Net cash provided by
(used in) financing
activities (268) 30 (492) (217) (468) (200)
Foreign-currency effect on
cash and cash equivalents 1 (6) 24 (42) 13 6
----- ----- ------- ------- ------ -------
Net increase (decrease)
in cash and cash
equivalents 10 (29) (320) (703) 93 (146)
----- ----- ------- ------- ------ -------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $693 $600 $693 $600 $693 $600
===== ===== ======= ======= ====== =======
SUPPLEMENTAL CASH FLOW
INFORMATION:
Cash paid for interest $22 $21 $85 $105 $85 $105
Cash paid for income taxes 5 6 13 11 15 12
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Nine Months
Ended Ended
September 30, September 30,
---------------- ----------------
2006 2005 2006 2005
-------- ------- ----------------
Net sales $2,307 $1,858 $6,725 $5,513
Cost of sales 1,758 1,395 5,119 4,141
-------- ------- -------- -------
Gross profit 549 463 1,606 1,372
Operating expenses (1):
Fulfillment 217 171 599 495
Marketing 64 44 171 131
Technology and content 172 121 485 319
General and administrative 54 32 150 117
Other operating expense 2 40 9 43
-------- ------- -------- -------
Total operating expenses 509 408 1,414 1,105
-------- ------- -------- -------
Income from operations 40 55 192 267
Interest income 14 12 41 30
Interest expense (21) (22) (58) (70)
Other income, net 4 - 4 2
Remeasurements and other 1 6 10 38
-------- ------- -------- -------
Total non-operating expense (2) (4) (3) -
-------- ------- -------- -------
Income before income taxes 38 51 189 267
Provision for income taxes 19 21 96 133
-------- ------- -------- -------
Income before cumulative effect of
change in accounting principle 19 30 93 134
Cumulative effect of change in
accounting principle - - - 26
-------- ------- -------- -------
Net income $19 $30 $93 $160
======== ======= ======== =======
Basic earnings per share:
Prior to cumulative effect of
change in accounting principle $0.05 $0.07 $0.22 $0.33
Cumulative effect of change in
accounting principle - - - 0.06
-------- ------- -------- -------
$0.05 $0.07 $0.22 $0.39
======== ======= ======== =======
Diluted earnings per share:
Prior to cumulative effect of
change in accounting principle $0.05 $0.07 $0.22 $0.32
Cumulative effect of change in
accounting principle - - - 0.06
-------- ------- -------- -------
$0.05 $0.07 $0.22 $0.38
======== ======= ======== =======
Weighted average shares used in
computation of earnings per share:
Basic 417 413 417 411
======== ======= ======== =======
Diluted 424 428 425 426
======== ======= ======== =======
(1) Includes stock-based compensation
as follows:
Fulfillment $8 $5 $18 $13
Marketing 1 2 3 5
Technology and content 16 13 38 36
General and administrative 5 6 12 17
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Nine Months
Ended Ended
September 30, September 30,
--------------- ---------------
2006 2005 2006 2005
------- ------- ------- -------
North America
Net sales $1,257 $1,041 $3,661 $3,028
Cost of sales 914 749 2,668 2,179
------- ------- ------- -------
Gross profit 343 292 993 849
Direct segment operating expenses (1) 321 226 885 645
------- ------- ------- -------
Segment operating income $ 22 $ 66 $ 108 $ 204
======= ======= ======= =======
International
Net sales 1,050 817 3,064 2,485
Cost of sales 844 646 2,451 1,962
------- ------- ------- -------
Gross profit 206 171 613 523
Direct segment operating expenses (1) 156 116 449 346
------- ------- ------- -------
Segment operating income $ 50 $ 55 $ 164 $ 177
======= ======= ======= =======
Consolidated
Net sales 2,307 1,858 6,725 5,513
Cost of sales 1,758 1,395 5,119 4,141
------- ------- ------- -------
Gross profit 549 463 1,606 1,372
Direct segment operating expenses 477 342 1,334 991
------- ------- ------- -------
Segment operating income 72 121 272 381
Stock-based compensation (30) (26) (71) (71)
Other operating expense (2) (40) (9) (43)
------- ------- ------- -------
Income from operations 40 55 192 267
Total non-operating expense, net (2) (4) (3) -
Provision for income taxes (19) (21) (96) (133)
Cumulative effect of change in
accounting principle - - - 26
------- ------- ------- -------
Net income $ 19 $ 30 $ 93 $ 160
======= ======= ======= =======
Segment Highlights:
Y/Y net sales growth:
North America 21% 28% 21% 23%
International 29 26 23 29
Consolidated 24 27 22 26
Y/Y gross profit growth:
North America 17% 31% 17% 27%
International 21 29 17 35
Consolidated 18 30 17 30
Y/Y segment operating income growth:
North America (67%) 16% (47%) 3%
International (8) 46 (8) 56
Consolidated (40) 28 (29) 22
Net sales mix:
North America 54% 56% 54% 55%
International 46 44 46 45
(1) A significant majority of our costs for "Technology and content"
are incurred in the United States and most of these costs are
allocated to our North America segment.
AMAZON.COM, INC.
Supplemental Net Sales Information
(in millions)
(unaudited)
Three Months Nine Months
Ended Ended
September 30, September 30,
--------------- ---------------
2006 2005 2006 2005
------- ------- ------- -------
North America
Media $ 785 $ 684 $2,330 $2,015
Electronics and other general
merchandise 409 304 1,148 863
Other 63 53 183 150
------- ------- ------- -------
Total North America $1,257 $1,041 $3,661 $3,028
======= ======= ======= =======
International
Media 757 629 2,237 1,917
Electronics and other general
merchandise 290 187 815 565
Other 3 1 12 3
------- ------- ------- -------
Total International $1,050 $ 817 $3,064 $2,485
======= ======= ======= =======
Consolidated
Media 1,542 1,313 4,567 3,932
Electronics and other general
merchandise 699 491 1,963 1,428
Other 66 54 195 153
------- ------- ------- -------
Total Consolidated $2,307 $1,858 $6,725 $5,513
======= ======= ======= =======
Year-Over-Year Percentage Net Sales
Growth:
North America:
Media 15% 21% 16% 18%
Electronics and other general
merchandise 35 33 33 27
Other 17 122 22 108
Total North America 21 28 21 23
International:
Media 20% 19% 17% 20%
Electronics and other general
merchandise 55 62 44 76
Other 144 177 286 85
Total International 29 26 23 29
Consolidated:
Media 17% 20% 16% 19%
Electronics and other general
merchandise 43 43 38 43
Other 20 123 27 107
Total Consolidated 24 27 22 26
Year-Over-Year Percentage Net Sales
Growth Excluding Effect of Exchange
Rates:
International:
Media 19% 20% 21% 18%
Electronics and other general
merchandise 51 64 48 72
Other 135 178 296 82
Total International 26 28 27 27
Consolidated:
Media 17% 21% 18% 18%
Electronics and other general
merchandise 41 43 39 42
Other 20 123 27 107
Total Consolidated 23 28 24 25
Consolidated Net Sales Mix:
Media 67% 71% 68% 71%
Electronics and other general
merchandise 30 26 29 26
Other 3 3 3 3
AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
September December September
30, 31, 30,
2006 2005 2005
----------- -------- -----------
ASSETS (unaudited) (unaudited)
Current assets:
Cash and cash equivalents $693 $1,013 $600
Marketable securities 526 987 819
Inventories 736 566 456
Deferred tax assets, current
portion 79 89 58
Accounts receivable, net and
other current assets 281 274 188
----------- -------- -----------
Total current assets 2,315 2,929 2,121
Fixed assets, net 449 348 322
Deferred tax assets, long-term
portion 180 223 190
Goodwill 194 159 159
Other assets 130 37 40
----------- -------- -----------
Total assets $3,268 $3,696 $2,832
=========== ======== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,196 $1,366 $876
Accrued expenses and other
current liabilities 572 563 437
----------- -------- -----------
Total current liabilities 1,768 1,929 1,313
Long-term debt and other 1,304 1,521 1,513
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par
value:
Authorized shares -- 500
Issued and outstanding
shares -- none - - -
Common stock, $0.01 par value:
Authorized shares -- 5,000
Issued and outstanding
shares: 411, 416, and 414 4 4 4
Treasury stock, at cost (252) - -
Additional paid-in capital 2,377 2,263 2,215
Accumulated other
comprehensive income 1 6 13
Accumulated deficit (1,934) (2,027) (2,226)
----------- -------- -----------
Total stockholders' equity 196 246 6
----------- -------- -----------
Total liabilities and
stockholders' equity $3,268 $3,696 $2,832
=========== ======== ===========
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
----------------------------------------------------------------------
Y/Y %
Q3 Q4 Q1 Q2 Q3 Change
2005 2005 2006 2006 2006
-----------------------------------------
Cash Flows and Shares
Operating cash flow --
trailing twelve months (TTM)
(1) $661 $733 $724 $610 $587 (11%)
Purchase of fixed assets
(incl. internal-use software
& website development) --
TTM $186 $204 $223 $235 $221 19%
Free cash flow (operating
cash flow less purchases of
fixed assets) -- TTM (1) $475 $529 $501 $375 $366 (23%)
Common shares and stock-based
awards outstanding 438 438 438 443 435 (1%)
Common shares outstanding 414 416 417 419 411 (1%)
Stock-based awards
outstanding 24 22 21 24 24 (1%)
Stock-based awards
outstanding -- % of common
shares outstanding 5.8% 5.2% 4.9% 5.8% 5.8% N/A
Results of Operations
Worldwide (WW) net sales $1,858 $2,977 $2,279 $2,139 $2,307 24%
WW net sales -- Y/Y growth,
excluding the effect of
foreign exchange rates 27.6% 21.9% 24.8% 23.4% 23.1% N/A
WW net sales -- TTM $8,054 $8,490 $8,867 $9,253 $9,701 20%
WW net sales -- TTM Y/Y
growth, excluding the effect
of foreign exchange rates 25.2% 23.7% 24.3% 24.0% 23.2% N/A
Gross profit $463 $667 $547 $509 $549 18%
Gross margin -- % of WW net
sales 24.9% 22.4% 24.0% 23.8% 23.8% N/A
Gross profit -- TTM $1,917 $2,039 $2,128 $2,187 $2,273 19%
Gross margin -- TTM % of WW
net sales 23.8% 24.0% 24.0% 23.6% 23.4% N/A
Operating income (1)(3) $55 $165 $106 $47 $40 (28%)
Operating margin -- % of WW
net sales (1) 3.0% 5.5% 4.6% 2.2% 1.7% N/A
Operating income -- TTM
(1)(3) $430 $432 $430 $372 $357 (17%)
Operating margin -- TTM % of
WW net sales (1) 5.3% 5.1% 4.8% 4.0% 3.7% N/A
Net income (1) (2) $30 $199 $51 $22 $19 (35%)
Net income per diluted share
(1) (2) $0.07 $0.47 $0.12 $0.05 $0.05 (34%)
Net income -- TTM (1) (2) $507 $359 $332 $302 $292 (42%)
Net income per diluted share
-- TTM (1) (2) $1.19 $0.84 $0.78 $0.71 $0.69 (42%)
Segments
North America Segment:
Net sales $1,041 $1,683 $1,247 $1,157 $1,257 21%
Net sales -- Y/Y growth,
excluding the effect of
foreign exchange rates 27.4% 20.8% 21.3% 20.4% 20.5% N/A
Net sales -- TTM $4,420 $4,711 $4,931 $5,128 $5,343 21%
Gross profit $292 $418 $341 $309 $343 17%
Gross margin -- % of North
America net sales 28.1% 24.8% 27.3% 26.7% 27.3% N/A
Gross profit -- TTM $1,204 $1,267 $1,329 $1,361 $1,411 17%
Gross margin -- TTM % of
North America net sales 27.2% 26.9% 27.0% 26.5% 26.4% N/A
Operating income (3) $66 $92 $62 $25 $22 (67%)
Operating margin -- % of
North America net sales 6.4% 5.5% 5.0% 2.1% 1.7% N/A
Operating income -- TTM (3) $326 $296 $292 $245 $200 (39%)
Operating margin -- TTM %
of North America net sales 7.4% 6.3% 5.9% 4.8% 3.8% N/A
International Segment:
Net sales $817 $1,294 $1,032 $982 $1,050 29%
Net sales -- Y/Y growth,
excluding the effect of
foreign exchange rates 27.8% 23.2% 28.9% 27.0% 26.3% N/A
Net sales -- TTM $3,634 $3,779 $3,936 $4,125 $4,358 20%
Net sales -- TTM % of WW
net sales 45.1% 44.5% 44.4% 44.6% 44.9% N/A
Gross profit $171 $249 $206 $200 $206 21%
Gross margin -- % of
International net sales 20.9% 19.3% 20.0% 20.4% 19.6% N/A
Gross profit -- TTM $713 $772 $799 $827 $862 21%
Gross margin -- TTM % of
International net sales 19.6% 20.4% 20.3% 20.0% 19.8% N/A
Operating income $55 $93 $58 $55 $50 (8%)
Operating margin -- % of
International net sales 6.7% 7.1% 5.6% 5.6% 4.8% N/A
Operating income -- TTM $233 $270 $265 $260 $256 10%
Operating margin -- TTM %
of International net sales 6.4% 7.1% 6.7% 6.3% 5.9% N/A
----------------------------------------------------------------------
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except inventory turnover, accounts payable days, and
employee data)
(unaudited)
----------------------------------------------------------------------
Y/Y %
Q3 Q4 Q1 Q2 Q3 Change
2005 2005 2006 2006 2006
-----------------------------------------
Segments (continued)
Consolidated Segments:
Operating expenses $342 $482 $427 $429 $477 39%
Operating expenses -- TTM $1,358 $1,473 $1,570 $1,681 $1,816 34%
Operating income (3) $121 $185 $120 $80 $72 (40%)
Operating margin -- % of
consolidated sales 6.5% 6.2% 5.3% 3.7% 3.1% N/A
Operating income -- TTM (3) $559 $566 $558 $506 $457 (18%)
Operating margin -- TTM %
of consolidated net sales 6.9% 6.7% 6.3% 5.5% 4.7% N/A
Supplemental North America
Segment Net Sales:
Media $684 $1,030 $815 $730 $785 15%
Media -- TTM $2,901 $3,046 $3,163 $3,260 $3,361 16%
Electronics and other
general merchandise $304 $580 $374 $365 $409 35%
Electronics and other
general merchandise--TTM $1,311 $1,443 $1,534 $1,622 $1,727 32%
Electronics and other
general merchandise -- TTM
% of North America net
sales 30% 31% 31% 32% 32% N/A
Other $53 $73 $58 $62 $63 17%
Other -- TTM $208 $222 $234 $246 $255 23%
Supplemental International
Segment Net Sales:
Media $629 $968 $763 $718 $757 20%
Media -- TTM $2,828 $2,885 $2,972 $3,077 $3,205 13%
Electronics and other
general merchandise $187 $321 $265 $259 $290 55%
Electronics and other
general merchandise -- TTM $801 $886 $952 $1,033 $1,136 42%
Electronics and other
general merchandise -- TTM
% of International net
sales 22% 23% 24% 25% 26% N/A
Other $1 $5 $4 $5 $3 144%
Other -- TTM $4 $8 $11 $15 $17 341%
Supplemental Worldwide Net
Sales:
Media $1,313 $1,998 $1,578 $1,448 $1,542 17%
Media -- TTM $5,730 $5,931 $6,135 $6,337 $6,566 15%
Electronics and other
general merchandise $491 $901 $639 $624 $699 43%
Electronics and other
general merchandise--TTM $2,113 $2,329 $2,486 $2,655 $2,863 36%
Electronics and other
general merchandise -- TTM
% of WW net sales 26% 27% 28% 29% 30% N/A
Other $54 $78 $62 $67 $66 20%
Other -- TTM $211 $230 $245 $261 $272 29%
Balance Sheet
Cash and marketable
securities $1,419 $2,000 $1,334 $1,419 $1,219 (14%)
Inventory, net -- ending $456 $566 $538 $521 $736 61%
Inventory -- average
inventory % of TTM net sales 5.2% 5.4% 5.3% 5.3% 5.8% N/A
Inventory turnover, average
-- TTM 14.8 14.1 14.4 14.3 13.2 (11%)
Fixed assets, net $322 $348 $361 $405 $449 40%
Accounts payable days --
ending 58 54 48 53 63 8%
Other
Employees (full-time and
part-time; excludes
contractors & temporary
personnel) 11,200 12,000 12,400 12,700 13,300 19%
----------------------------------------------------------------------
Note: The attached "Financial and Operational Summary" is an integral
part of this Supplemental Financial Information and Business Metrics.
(1) The Company settled a patent lawsuit on terms including a one-time
payment of $40 million in Q3 2005. This negatively impacts TTM
operating cash flow and free cash flow by $40 million for all periods
that include Q3 2005. The settlement negatively affected Q3 2005
operating income by $40 million, and Q3 2005 net income by $20
million after tax.
(2) Q4 2005 net income includes a tax benefit of $90 million related
to determining that certain of our deferred tax assets are
realizable.
(3) In Q2 2006, a fee dispute with Toysrus.com reduced our operating
income by $20 million.
Amazon.com, Inc.
Financial and Operational Summary
(unaudited)
Quarterly Results of Operations (comparisons are with the
equivalent period of the prior year, unless otherwise stated)
Net Sales
- Net sales increased 24%, or 23% excluding the $20 million
favorable impact of year-over-year changes in foreign
exchange.
- In the prior year, we sold over 1.6 million copies of Harry
Potter and the Half-Blood Prince.
- Shipping revenue was $118 million, up 5% from $112 million.
- Amounts paid in advance for subscription services, including
amounts received from online DVD rentals, Amazon Prime and
other membership programs, are deferred and recognized as
revenue over the subscription term.
- Net sales include fixed fees, commissions and per-unit fees
earned from third-party sellers and similar amounts earned
through Amazon Enterprise Solutions.
Cost of Sales
- Cost of sales consists of the purchase price of products sold
by us, inbound and outbound shipping charges, packaging
supplies, amortization of our DVD rental library and service
costs such as those incurred in operating and staffing our
fulfillment and customer service centers on behalf of third
parties.
- Inbound shipping charges to receive products from our
suppliers are included in inventory cost and recognized as
cost of sales upon sale to our customers.
- Outbound shipping costs totaled $182 million, up 14% from $159
million. Net shipping loss was $64 million, or 2.8% of net
sales, up 36% from a net shipping loss of $47 million, or 2.5%
of net sales, resulting primarily from our free shipping
offers and Amazon Prime. To the extent our customers use free
shipping offers at an increasing rate, including memberships
in Amazon Prime, our net cost of shipping will increase.
- While costs associated with free shipping, including Amazon
Prime, are not included in marketing expense, we view our free
shipping offers as an effective worldwide marketing tool and
intend to continue offering them indefinitely. We offer
promotions, such as free membership trials, for Amazon Prime
and expect to continue to offer these promotions in the
future.
Operating Expenses
- Depreciation expense for fixed assets, including amortization
of internal-use software and website development, was $62
million, up from $29 million. Depreciation is recorded on a
straight-line basis over the estimated useful lives of the
assets -- generally two years or less for assets such as
internal-use software and our DVD rental library, three years
for our technology infrastructure, five years for furniture
and fixtures and ten years for heavy equipment. Depreciation
expense is generally classified within operating expense
categories on the consolidated statements of operations, and
certain assets, such as our DVD rental library, are amortized
to cost of sales.
- Stock-based compensation was $30 million compared to $26
million in the prior year, with the increase primarily due to
increased restricted stock unit grants generally corresponding
with an increase in employees. The estimation of stock awards
that will ultimately vest requires judgment, and to the extent
actual results or updated estimates differ from our current
estimates, such amounts will be recorded as a cumulative
adjustment in the period estimates are revised. We consider
many factors when estimating expected forfeitures, including
types of awards, employee class and historical experience.
Actual results, and future changes in estimates, may differ
substantially from our current estimates.
- Operating expenses with and without stock-based compensation
are as follows:
Three Months Ended Three Months Ended
September 30, 2006 September 30, 2005
--------------------------- ---------------------------
As Stock-Based As Stock-Based
Reported Compensation Net Reported Compensation Net
--------------------------- --------------------------
Operating (in millions) (in millions)
Expenses:
Fulfillment $ 217 $ (8) $209 $ 171 $ (5) $166
Marketing 64 (1) 63 44 (2) 42
Technology and
content 172 (16) 156 121 (13) 108
General and
administrative 54 (5) 49 32 (6) 26
Other operating
expense 2 - 2 40 - 40
-------- ------------ ----- -------- ----------- -----
Total operating
expenses $ 509 $ (30) $479 $ 408 $ (26) $382
======== ============ ===== ======== =========== =====
Year-over-year
Percentage
Growth:
Fulfillment 27 % 26 % 24 % 23 %
Marketing 45 49 28 23
Technology and
content 42 45 74 66
General and
administrative 69 87 12 1
Percent of Net
Sales:
Fulfillment 9.4 % 9.1 % 9.2 % 8.9 %
Marketing 2.8 2.7 2.4 2.3
Technology and
content 7.4 6.8 6.5 5.8
General and
administrative 2.4 2.1 1.7 1.4
Fulfillment
- The increase in fulfillment costs in absolute dollars relates
to costs from expanding fulfillment capacity and variable
costs. Variable costs correspond with sales volume and
inventory levels, our mix of product sales, and payment
processing and related transaction costs, including mix of
payment methods and costs from our guarantee for certain
third-party seller transactions.
- Fulfillment costs represent those costs incurred in operating
and staffing our fulfillment and customer service centers,
including costs attributable to buying, receiving, inspecting
and warehousing inventories; picking, packaging and preparing
customer orders for shipment; and payment processing fees and
transaction costs, including costs associated with our
guarantee of certain third-party seller transactions and
responding to inquiries from customers. Fulfillment costs also
include amounts paid to third parties who assist us in
fulfillment and customer service operations.
- Payment processing fees charged to us associated with
third-party seller sales are based on the gross purchase price
of underlying transactions, and transaction costs, such as our
A to Z Guarantee, are higher as a percentage of revenue versus
our retail sales. Accordingly, third-party sales have higher
fulfillment costs as a percentage of net sales.
- Our worldwide fulfillment capacity expansion in 2006, which
will add less space than 2005, is designed to accommodate
greater selection and meet anticipated shipment volumes from
sales of our own products as well as sales by third parties
for which we provide the fulfillment.
Marketing
- We direct customers to our websites primarily through a number
of targeted online marketing channels, such as our Associates
and Syndicated Stores programs, sponsored search, portal
advertising, e-mail campaigns, and other initiatives. Our
marketing expenses are largely variable, based on growth in
sales and changes in rates. To the extent there is increased
or decreased competition for these traffic sources, or to the
extent our mix of these channels shifts, we would expect to
see a corresponding change in our marketing expense or its
effect.
- Marketing costs increased in absolute dollars in Q3 2006 due
to increased spending in variable online marketing channels,
such as our Associates program, sponsored search, and other
variable marketing initiatives.
- While costs associated with free shipping are not included in
marketing expense, we view free shipping offers as an
effective worldwide marketing tool, and intend to continue
offering them indefinitely.
Technology and Content
- In 2005, we added a significant number of computer scientists,
software engineers and employees involved in editorial
content, buying, merchandising, and systems support. We are
investing in several areas of technology including seller
platforms, web services and digital initiatives. In addition,
we increased spending on our technology infrastructure so that
we can continue to enhance the customer experience and improve
our process efficiency.
- Technology and content expenses consist principally of payroll
and related expenses for employees involved in research and
development, including application development, editorial
content, merchandising selection, and systems and
telecommunications support, as well as costs associated with
systems and telecommunications infrastructure.
- A significant majority of our technology costs are incurred in
the U.S. and are allocated to our North America segment.
- Certain costs relating to the development of internal-use
software and website development, including software to
upgrade and enhance our websites and processes supporting our
business, are capitalized and depreciated over two years. In
Q3 2006 and Q3 2005, we capitalized $34 million (including $5
million of stock-based compensation) and $25 million
(including $3 million of stock-based compensation) of costs
associated with internal-use software and website development.
Amortization of previously capitalized amounts was $23 million
and $14 million for Q3 2006 and Q3 2005.
- We expect the year-over-year percentage growth in technology
and content, excluding stock-based compensation, to continue
to decrease in Q4 2006.
General and Administrative
- The increase in general and administrative costs in Q3 2006 is
primarily due to increases in payroll and related expenses.
- In Q3 2005 we recorded a $12 million benefit for actual and
expected reimbursement by an insurer of certain legal costs
previously incurred by us.
Stock-Based Awards
- As of January 1, 2005, we adopted SFAS 123(R), which requires
measurement of compensation cost for stock-based awards at
grant date fair value. The fair value of restricted stock and
restricted stock units is determined based on the number of
shares granted and the quoted price of our common stock, while
the fair value of stock options is determined using a
Black-Scholes valuation model. The fair value is recognized as
an expense over the service period, net of estimated
forfeitures, using the accelerated method under SFAS 123(R).
The adoption of SFAS 123(R) in Q1 2005 resulted in a
cumulative benefit from accounting change of $26 million,
which reflects the net cumulative impact of estimating future
forfeitures in the determination of period expense, rather
than recording forfeitures when they occur as previously
permitted.
- Stock-based awards generally vest over service periods of
between two and five years.
- We granted stock awards, substantially all of which have been
restricted stock units since October 2002, of 1 million shares
in the quarter. Our annual stock awards are granted in the
second quarter.
- As of September 30, 2006, there were 24 million shares
underlying outstanding stock awards, consisting of 10 million
shares underlying stock options with a $16 weighted-average
exercise price and 14 million shares underlying restricted
stock units.
- As of September 30, 2006, outstanding common shares plus
shares underlying outstanding stock-based awards were 435
million, down 1% from 438 million as of September 30, 2005.
This total includes all stock-based awards outstanding,
without regard for estimated forfeitures, consisting of vested
and unvested awards and in-the-money and out-of-the-money
stock options.
Other Operating Expense
- Other operating expense primarily includes costs related to
intangibles amortization.
- We acquired certain companies during the first nine months of
2006 for an aggregate purchase price of $50 million, including
cash payments of $30 million in the nine months ended
September 30, 2006, and future cash payments of $19 million
and $1 million due in 2007 and 2008. Acquired intangibles
totaled $17 million and have estimated useful lives of between
one and ten years. The excess of purchase price over the fair
value of the net assets acquired was $33 million and is
classified as goodwill on our consolidated balance sheets. The
results of operations of the acquired business have been
included in our consolidated results from each closing date
forward. The effect of these acquisitions on consolidated net
sales and operating income during the first nine months of
2006 was not significant.
Remeasurements and Other
- The remeasurement of our 6.875% PEACS and intercompany
balances can result in significant gains and charges
associated with the effect of movements in currency exchange
rates.
- Remeasurement of the principal amount of our 6.875% PEACS from
Euros to U.S. dollars resulted in a foreign-currency gain of
$3 million, compared with a gain of $4 million.
- Remeasurement of foreign-currency intercompany balances that
are to be repaid among subsidiaries resulted in a
foreign-currency loss of $4 million, compared with a loss of
$2 million.
Income Taxes
- Our tax provision for interim periods is determined using an
estimate of the annual effective tax rate. There is a
potential for significant volatility of our 2006 effective tax
rate due to several factors, including from variability in
accurately predicting our taxable income and the taxable
jurisdictions to which it relates.
- Our provision for income taxes was $19 million in Q3 -- and
our current estimate of our annual effective tax rate is 51%.
- The effective tax rate was higher than the 35% statutory rate,
resulting from steps we initiated to establish our European
headquarters in Luxembourg, which we expect will benefit our
effective tax rate over time. Associated with the
establishment of our European headquarters, we transferred
certain of our operating assets in 2005 and 2006 from the U.S.
to international locations. These transfers resulted in
taxable income and an increase in our effective tax rate.
- We expect cash taxes paid in 2006 to be approximately $25
million compared with $12 million in 2005. We endeavor to
optimize our global taxes on a cash basis, rather than on a
financial reporting basis.
Foreign Exchange
- Our financial reporting currency is the U.S. dollar, and
changes in exchange rates significantly affect our reported
results and consolidated trends.
- The effect on our consolidated statements of operations from
year-over-year changes in exchange rates versus the U.S.
dollar throughout the period is as follows:
Three Months Ended September 30,
-----------------------------------------------------
2006 2005
-------------------------- --------------------------
At At
Prior Exchange Prior Exchange
Year Rate Year Rate
Rates Effect As Rates Effect As
(1) (2) Reported (1) (2) Reported
------- -------- --------- ------- -------- ---------
(in millions, except per share amounts)
Net sales $2,287 $ 20 $2,307 $1,865 $ (7) $ 1,858
Gross profit 545 4 549 464 (1) 463
Operating
expenses 506 3 509 408 - 408
Income from
operations 39 1 40 56 (1) 55
Net interest
expense and
other 3 - 3 10 - 10
Remeasurements
and other
income (3) 2 (1) 1 4 2 6
Net income 19 - 19 29 1 30
Diluted earnings
per share $ 0.05 $ - $ 0.05 $ 0.07 $ - $ 0.07
(1) Represents the outcome that would have resulted had currency
exchange rates in the current period been the same as those in effect
in the comparable prior year period for operating results, and if we
did not incur the variability associated with remeasurements for our
6.875% PEACS and intercompany balances.
(2) Represents the increase or decrease in reported amounts
resulting from changes in exchange rates from those in effect in the
comparable prior year period for operating results, and if we did not
incur the variability associated with remeasurements for our 6.875%
PEACS and intercompany balances.
(3) Includes foreign-currency gains (losses) on remeasurement of
6.875% PEACS and intercompany balances compared to prior quarter, and
realized currency-related gains associated with sales of
Euro-denominated investments held by a U.S. subsidiary.
Cash Flows and Balance Sheet
- Free cash flow, a non-GAAP financial measure, was $366 million
for the trailing twelve months ended September 30, 2006,
compared to $475 million for the trailing twelve months ended
September 30, 2005, a decrease of 23%, primarily driven by our
increased expenditure in technology and content. Other items
reducing free cash flow for the trailing twelve months ended
September 30, 2006, include changes in working capital, the
termination of our contract with Toysrus.com LLC and $43
million from excess tax benefits for stock-based compensation
now classified as financing cash flows.
- Operating cash flows and free cash flows can be volatile and
are sensitive to many factors, including changes in working
capital and timing of capital expenditures. Working capital at
any specific point in time is subject to many variables,
including seasonality, inventory management and category
expansion, the timing of expense payments and cash receipts,
discounts offered by vendors, vendor payment terms and
fluctuations in foreign exchange rates.
- During Q3 2006, we paid Toysrus.com LLC $13 million previously
retained by us against payments otherwise due to them.
- Free cash flow for the twelve months ended September 30, 2005,
was reduced by a $40 million payment for a patent litigation
settlement in Q3 2005.
- In August 2006, our Board of Directors authorized a 24-month
program to repurchase up to an aggregate of $500 million of
our common stock. We repurchased 8 million shares of our
common stock for $252 million in Q3 2006 under this program.
- Prior to our adoption of SFAS 123(R), cash retained as a
result of excess tax deductions relating to stock-based
compensation was presented in operating cash flows, along with
other tax cash flows. SFAS 123(R) requires benefits relating
to excess stock-based compensation deductions to be presented
as financing cash inflows -- effectively a reclassification
between operating cash flows and financing cash flows. Tax
benefits resulting from stock-based compensation deductions in
excess of amounts reported for financial reporting purposes --
which negatively impacted operating cash flow - were $9
million in Q3 2006 and $43 million for the trailing twelve
months. We expect amounts for 2006 to increase substantially
from comparable amounts in 2005. Accordingly, amounts
presented for operating cash flows and free cash flows for
2006 will be negatively affected in comparison to prior
results; however, the underlying economic substance is not
affected by this change in reporting classification.
- Our cash, cash equivalents and marketable securities of $1.22
billion, at fair value, primarily consist of cash, investment
grade securities and AAA-rated money market mutual funds.
Included are amounts held in foreign currencies of $383
million, primarily in Euros, British Pounds and Japanese Yen.
- Accounts receivable, net and other current assets include
accounts receivable from merchant partners, vendors and credit
card companies, interest receivables and prepaid expenses,
such as advance payments for insurance, licenses and other
miscellaneous expenses.
- Fixed assets include assets such as furniture and fixtures,
heavy equipment, technology infrastructure, internal-use
software and website development, and our DVD rental library.
- Other assets include, among other things, $83 million of
marketable securities restricted for longer than one year, $8
million of deferred issuance costs on long-term debt, $8
million of certain equity investments, and $24 million of
other intangibles, net. Marketable securities restricted for
longer than one year are related to collateralization of debt
for our international operations -- such amounts at December
31, 2005, were insignificant.
- Accrued expenses and other current liabilities include, among
other things, liabilities for gift certificates of $135
million, professional fees, marketing activities, workforce
costs -- including accrued payroll, vacation and other
benefits--and unearned revenue of $57 million, which is
recorded when payments are received or due in advance of
performing our service obligations and is amortized over the
service period.
- Long-term debt and other primarily include the following (in
millions):
Principal Interest Principal
at Maturity Rate Due Date
-------------- -------- ---------
Convertible Subordinated Notes February
$900 (1) 4.750% 2009
Premium Adjustable Convertible February
Securities ("PEACS") 304 (2)(4) 6.875% 2010
--------------
$1,204 (3)
==============
(1) Convertible at the holders' option into our common stock at
$78.0275 per share. We have the right to redeem the Convertible
Subordinated Notes, in whole or in part, at a redemption price of
101.425% of the principal, which decreases every February 1 by 47.5
basis points until maturity, plus any accrued and unpaid interest.
(2) EUR 240 million principal amount, convertible at the holders'
option into our common stock at EUR 84.883 per share ($108 per share
based on the Euro/U.S. dollar exchange rate as of September 30, 2006).
We have the right to redeem the PEACS, in whole or in part, by paying
the principal amount, plus any accrued and unpaid interest. We do not
hedge any portion of the PEACS. The U.S. dollar equivalent principal,
interest and conversion price fluctuate based on the Euro/U.S. dollar
exchange ratio.
(3) The "if converted" number of shares associated with our
convertible debt instruments (approximately 14 million total shares)
is excluded from diluted shares as they are antidilutive.
(4) As previously announced, in Q1 2006 we redeemed EUR 250
million -- or $300 million at the Euro to U.S. dollar exchange rate on
the redemption date--in principal amount of our PEACS at par.
Certain Definitions and Other
- We present segment information for North America and
International. We measure operating results of our segments
using an internal performance measure of direct segment
operating expenses that excludes stock-based compensation and
other operating expense, each of which is not allocated to
segment results. Other centrally incurred operating costs are
fully allocated to segment results. Our operating results,
particularly for the International segment, are affected by
movements in foreign exchange rates.
- The North America segment consists of amounts earned from
retail sales of consumer products (including from third-party
sellers) and subscriptions through North America-focused
websites such as www.amazon.com and www.amazon.ca; from North
America-focused Syndicated Stores, such as www.borders.com;
from our mail-order tool catalog phone orders; from our Amazon
Prime membership program; and from non-retail activities such
as North America-focused Amazon Enterprise Solutions program,
and marketing and promotional agreements. This segment
includes export sales from www.amazon.com and www.amazon.ca.
- The International segment consists of amounts earned from
retail sales of consumer products (including from third-party
sellers) and subscriptions through internationally focused
websites such as www.amazon.co.uk, www.amazon.de,
www.amazon.co.jp, www.amazon.fr, and www.joyo.com; from
internationally focused Syndicated Stores; from our DVD rental
service; and from non-retail activities such as
internationally focused marketing and promotional agreements.
This segment includes export sales from these internationally
based sites (including export sales from these sites to
customers in the U.S. and Canada) but excludes export sales
from www.amazon.com and www.amazon.ca.
- We provide supplemental sales information within each segment
for three categories: Media, Electronics and Other General
Merchandise, and Other. Media consists of amounts earned from
DVD rentals and retail sales from all sellers of books, music,
DVD/video, magazine subscriptions, software, video games and
video-game consoles. Electronics and Other General Merchandise
consists of amounts earned from retail sales from all sellers
of items not included in Media, such as electronics and
office, camera and photo, toys and baby, tools, home and
garden, apparel, sports and outdoors, kitchen and housewares,
gourmet food, jewelry, health and personal care, beauty and
musical instruments. The Other category consists of non-retail
activities, such as the Amazon Enterprise Solutions program
and miscellaneous marketing and promotional activities, such
as our co-branded credit card programs.
- Operating cash flow is net cash provided by (used in)
operating activities, including cash outflows for interest and
excluding proceeds from the exercise of stock-based employee
awards. Free cash flow is operating cash flow less cash
outflows for purchases of fixed assets, including internal-use
software and website development.
- Operating cycle is number of days of sales in inventory plus
number of days of sales in accounts receivable minus accounts
payable days. Accounts payable days are calculated as the
quotient of accounts payable to cost of sales, multiplied by
the number of days in the period. Inventory turns are
calculated as the quotient of trailing twelve month cost of
sales to average inventory over five quarter ends.
- Return on invested capital is trailing-twelve-month free cash
flow divided by average total assets less current liabilities
over five quarter ends.
- References to customers mean customer accounts, which are
unique e-mail addresses, established either when a customer's
initial order is shipped or when a customer orders from
certain third-party sellers on our websites. Customer accounts
include customers of Amazon Marketplace, and our Merchants@
and Syndicated Stores programs, but exclude certain customers,
including DVD rental customers, customers associated with
certain of our acquisitions (including Joyo.com customers),
Amazon Enterprise Solutions program customers, Amazon.com
Payments customers, our catalog customers and the customers of
select companies with whom we have a technology alliance or
marketing and promotional relationship. Customers are
considered active when they have placed an order during the
preceding twelve-month period.
- References to sellers or merchants mean active seller
accounts, which are established when a seller receives an
order from a customer account. Seller accounts include sellers
in Amazon Marketplace, and Merchants@ platforms, but exclude
Amazon Enterprise Solutions sellers. Sellers are considered
active when they have received an order during the preceding
twelve-month period.
- References to units mean units sold (net of returns and
cancellations) by us and by third-party sellers at Amazon.com
domains worldwide -- such as www.amazon.com, www.amazon.co.uk,
www.amazon.de, www.amazon.co.jp, www.amazon.fr and
www.amazon.ca--and at Syndicated Stores domains, as well as
Amazon.com-owned items sold through catalogs and at
non-Amazon.com domains, such as books, music and DVD/video
items ordered from Amazon.com's store at www.target.com. Units
sold do not include units associated with certain of our
acquisitions (including Joyo.com units), Amazon.com gift
certificates or DVD rentals.
CONTACT: Amazon.com Investor Relations
Kim Nelson, 206/266-2171
ir@amazon.com
www.amazon.com/ir
or
Amazon.com Public Relations
Patty Smith, 206/266-7180
SOURCE: Amazon.com, Inc.
|
| | |
