Amazon.com reported Tuesday that third quarter sales revenues were marginally below analysts’ anticipations and would fare likewise in Q4.
However, according to chief financial officer Warren Jenson, the shortfall is offset by the company’s cost-cutting program and should in the final quarter result in Amazon’s first-ever pro forma profit. Pro forma results exclude such charges as stock-based compensation and goodwill amortisation.
Q3 pro forma losses at $58m, or 16 cents per share accorded with analysts’ expectations, better than $89m (25 cents) a year before. Reported losses were $170m (46 cents per share), down year-on-year from $241m (68 cents).
Mr Jenson declined to predict revenue performance for 2002: “Once we get to the point of being profitable and being in a position of sustained free cash flow,” he said, “you will see us return our focus to [sales] growth.”
News source: Financial Times