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Amazon posts $39m loss in 2012, forecasts up to $16.6bn revenues for Q1 2013

Tom Pakinkis
Amazon

Amazon has posted a $97m net income for Q4 2012 but a net loss of $39m for the year.

In a financial report released last night, the online retailer also announced an increase in sales of 27% to $61.09bn for the full year 2012, compared to $48.08bn in 2011.

Operating income decreased 22% to $676 million compared to $862 million in 2011.

In Q4 2012, however, Amazon reported a 22% increase in revenues to $21.27 billion, compared to $17.42 billion in the same period for 2011.

The retailer recorded a net income decrease of 47% in Q4 2012 from $177 million during the same period last year.

“We’re now seeing the transition we’ve been expecting,” said Jeff Bezos, founder and CEO of Amazon.com.

“After 5 years, eBooks is a multi-billion dollar category for us and growing fast – up approximately 70% last year.

“In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a book seller, up just 5%.

“We're excited and very grateful to our customers for their response to Kindle and our ever expanding ecosystem and selection,” he added.

Amazon expects net sales to be between $15.0 billion and $16.6 billion, or to grow between 14% and 26% compared with first quarter 2012.

Meanwhile, operating income (loss) is expected to be between $(285) million and $65 million, compared to $192 million in the prior year period.

You can see Amazon's Q4 2012 report in full below:

AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)
                                   
                                   
                                   
                                   
          Three Months Ended       Twelve Months Ended
          December 31,       December 31,
            2012           2011           2012           2011  
          (unaudited)                
                                   
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD         $ 2,980         $ 2,823         $ 5,269         $ 3,777  
                                   
OPERATING ACTIVITIES:                                  
Net income (loss)           97           177           (39 )         631  

Adjustments to reconcile net income to net cash from operating activities:

                                 

Depreciation of property and equipment, including internal-use software and website development, and other amortization

          662           359           2,159           1,083  
Stock-based compensation           235           159           833           557  
Other operating expense (income), net           36           43           154           154  
Losses (gains) on sales of marketable securities, net           (1 )         -           (9 )         (4 )
Other expense (income), net           100           (16 )         253           (56 )
Deferred income taxes           (148 )         67           (265 )         136  
Excess tax benefits from stock-based compensation           (239 )         (1 )         (429 )         (62 )
Changes in operating assets and liabilities:                                  
Inventories           (974 )         (1,260 )         (999 )         (1,777 )
Accounts receivable, net and other           (1,024 )         (1,077 )         (861 )         (866 )
Accounts payable           4,926           4,684           2,070           2,997  
Accrued expenses and other           1,412           1,076           1,038           1,067  
Additions to unearned revenue           545           358           1,796           1,064  
Amortization of previously unearned revenue           (546 )         (300 )         (1,521 )         (1,021 )
Net cash provided by (used in) operating activities           5,081           4,269           4,180           3,903  
                                   
INVESTING ACTIVITIES:                                  

Purchases of property and equipment, including internal-use software and website development

          (2,025 )         (550 )         (3,785 )         (1,811 )
Acquisitions, net of cash acquired, and other           (35 )         (49 )         (745 )         (705 )
Sales and maturities of marketable securities and other investments           506           912           4,237           6,843  
Purchases of marketable securities and other investments           (1,528 )         (1,782 )         (3,302 )         (6,257 )
Net cash provided by (used in) investing activities           (3,082 )         (1,469 )         (3,595 )         (1,930 )
                                   
FINANCING ACTIVITIES:                                  
Excess tax benefits from stock-based compensation           239           1           429           62  
Common stock repurchased           -           (277 )         (960 )         (277 )
Proceeds from long-term debt and other           3,083           47           3,378           177  

Repayments of long-term debt, capital lease, and finance lease obligations

          (156 )         (104 )         (588 )         (444 )
Net cash provided by (used in) financing activities           3,166           (333 )         2,259           (482 )
                                   
Foreign-currency effect on cash and cash equivalents           (61 )         (21 )         (29 )         1  
Net increase (decrease) in cash and cash equivalents           5,104           2,446           2,815           1,492  
                                   
CASH AND CASH EQUIVALENTS, END OF PERIOD         $ 8,084         $ 5,269         $ 8,084         $ 5,269  
                                   
SUPPLEMENTAL CASH FLOW INFORMATION:                                  
Cash paid for interest on long-term debt         $ 10         $ 4         $ 31         $ 14  
Cash paid for income taxes (net of refunds)           52           15           112           33  
Property and equipment acquired under capital leases           239           187           802           753  
Property and equipment acquired, net, under build-to-suit leases           (17 )         39           29           259  
                                   
                                             
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
                                             
                                             
                                             
                                             
              Three Months Ended         Twelve Months Ended
              December 31,         December 31,
                2012             2011             2012             2011  
              (unaudited)                    
                                             
Net product sales (1)             $ 18,147           $ 15,309           $ 51,733           $ 42,000  
Net services sales (2)               3,121             2,122             9,360             6,077  
Net sales               21,268             17,431             61,093             48,077  
                                             
Operating expenses (3):                                            
Cost of sales               16,136             13,830             45,971             37,288  
Fulfillment               2,258             1,659             6,419             4,576  
Marketing               851             593             2,408             1,630  
Technology and content               1,345             862             4,564             2,909  
General and administrative               235             184             896             658  
Other operating expense (income), net               38             43             159             154  
Total operating expenses               20,863             17,171             60,417             47,215  
                                             
Income from operations               405             260             676             862  
                                             
Interest income               9             14             40             61  
Interest expense               (28 )           (20 )           (92 )           (65 )
Other income (expense), net               (49 )           19             (80 )           76  
Total non-operating income (expense)               (68 )           13             (132 )           72  
                                             
Income before income taxes               337             273             544             934  
                                             
Provision for income taxes               (194 )           (86 )           (428 )           (291 )
Equity-method investment activity, net of tax               (46 )           (10 )           (155 )           (12 )
Net income (loss)   &

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Tags: Amazon, online, finance

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