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July 23 – July 29, 2012 Edition Amazon Profits Nosedive While Sales Climb
SEATTLE. Wa./AUTHORLINK NEWS/07/27/2012–Amazon.com Inc. reported a 96% decline in second quarter profits today, despite a 29% increase in sales to $12.83 billion. Bottom line profits were at $7 million. The dramatic drop in profitability reflects the companys continued investment in its business.
Both profits and revenues were under analysts estimates, and Amazon predicted its current quarter would include an operating loss.
For the latest reporting period, profit fell to $7 million, down from $191 million a year earlier.
Amazon did not reveal its sales figures for Kindle devices, but the company reported that its Kindle Fire tablet remains the top product on its web site.
For the third quarter, Amazon forecast sales of $12.9 to $14.3 billion, a 19% increase over last year. But it expects a loss between $50 million and $350 million.
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