Techology Costs Sap Amazon Q1 Profits by 35%

27 April 2006

    SEATTLE - reported quarterly profits down 35%, drained by technology updating costs during the period to March 31. Net income was $51 million (€41.09m; £28.53m) compared year-on-year with $78m.
    However, sales increased nearly 20% to $2.28 billion, prompting Amazon to raise its full-year sales target to between $9.95bn and $10.5bn.
    Earnings the previous year had been boosted by a one-off gain and the firm said that technology spending will decline.