Wednesday, 26 Octorber 2011

Amazon.com has reported a 44% jump in its third quarter revenues of US$10.88 billion, but net  profits plunged by 73% to $63 million, compaed to US$231 million a year ago.

Operating income was $79 million in the third quarter, compared with $268 million in third quarter 2010. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $14 million.

Looking ahead, the company said that net sales are expected to be between $16.45 billion and $18.65 billion, or to grow between 27% and 44% compared with fourth quarter 2010.

The operating loss is expected to be between US$200 million and $250 million, or between 142% decline and 47% decline compared with fourth quarter 2010.

However, the company is seeing considerable interest in its recently announced range of new Kindle tablets.

"In the three weeks since launch, orders for electronic ink Kindles are double the previous launch. And based on what we're seeing with Kindle Fire pre-orders, we're increasing capacity and building millions more than we'd already planned." said Jeff Bezos, founder and CEO of Amazon.com.