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Amazon Third Quarter Sales Up 39 Percent

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Oct 25 – Oct 31 2010 Edition Amazon Third Quarter Sales Up 39 Percent

SEATTLE/AUTHORLINK NEWS/October 25, 2010–Amazon.com, Inc. late last week announced that third quarter sales ending September 30, 2010 were up 39% to $7.56 billion.

Net sales increased 39% to $7.56 billion in the third quarter, compared with $5.45 billion in third quarter 2009. Excluding the $83 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 40% compared with third quarter 2009.

Operating income increased 7% to $268 million in the third quarter, compared with $251 million in third quarter 2009. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $15 million.

Net income increased 16% to $231 million in the third quarter, or $0.51 per diluted share, compared with net income of $199 million, or $0.45 per diluted share, in third quarter 2009.

Operating cash flow increased 16% to $2.62 billion for the trailing twelve months, compared with $2.25billion for the trailing twelve months ended September 30, 2009. Free cash flow decreased 5% to $1.83 billion for the trailing twelve months, compared with $1.92 billion for the trailing twelve months ended September 30, 2009.

“Every year for the last 15 years we’ve worked to improve the things customers care about, and this year is no exception,” said Jeff Bezos, founder and CEO of Amazon.com. “This holiday season we’ll have the best prices, the biggest selection, the highest in-stock, and the fastest delivery in our history.”

North America segment sales, representing the Company’s U.S. and Canadian sites, were $4.13 billion, up 45% from third quarter 2009. International segment sales, representing the Company’s U.K., German, Japanese, French and Chinese sites, were $3.43 billion, up 32% from third quarter 2009. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 35%.

Worldwide Media sales grew 14% to $3.35 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 15%.

FLooking ahead, Amazon expects net sales to be between $12.0 billion and $13.3 billion, or to grow between 26% and 40% compared with fourth quarter 2009. Operating income is expected to be between $360 million and $560 million, or between 24% decline and 18% growth compared with fourth quarter 2009.