Tuesday, April 26, 2011

Amazon profits slump by a third party

26 April 2011 last updated at 21: 24 GMT The Kindle e-reader Amazon is for its popular Kindle e-book reader online retail giant Amazon as compensation of the cost of investing in new companies a big jump in sales a sharp fall in quarterly profits reported has new software developed.

$201 M (£ 122 m) by 33% to the $299 m sank the company a year to previously made net income for the first three months of the year.

But net sales increased significantly to $9. 86bn of $7 billion.

The increase in sales and drop in earnings partly thanks to a number of new products was launched in the quarter.

This included new software for the company's Kindle e-book reader, cloud-computing applications, the data on remote servers popular, as an e-Bookstore in Germany can be stored.

North American sales hit $5. 47bn, by 45% over a year earlier, while international sales $4. 39bn grew 31%.

"We love for our customers to invent and have never excited about the long-term opportunities offered," founder and CEO Jeff Bezos said Amazon.

Year of assessment

The company said it expected sales to continue to grow strongly.

It forecast between $8,85 and $9. 65bn in the current quarter, an increase of 35 to 45% on a year earlier.

Profit analysts said the first quarter figure was disappointing, but this was not a big problem, while sales were up as quickly.

"This is investment year, another," said Colin Sebastian with Lazard capital markets.

"It will be probably not until the fourth quarter, that we see some benefit from it."


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