amazon.com ~ cash flow positive

This is fascinating. At last Amazon is starting to come good. Turnover figures are just astounding but it's good to see a company that really pioneered internet marketing and does a great job imhop at last being rewarded...A great way to buy books by the way even with the crook exchange rate...eric

Amazon posts profit for 2nd time, raises 2003 view
AAP News
13:40:020 24/01/2003
SEATTLE, Jan 23 (Reuters) - Amazon.com Inc on Thursday reported
its second-ever quarterly net profit and raised its outlook, buoyed
by growing holiday sales in the last three months of 2002 and its
ongoing free shipping incentive.
The online retailer's fourth quarter sales rose 28 percent from
the year-ago period, and it nudged up its full-year 2003 sales
forecast to a gain of at least 15 percent, boosting its previous
projection for 10 percent growth. Revenues for 2002 were up 26
percent from 2001.
Analysts had expected Amazon to increase its outlook for 2003,
and some questioned whether Amazon's lofty valuations could be
justified after share prices up by nearly 75 percent in the past
year.
The improved outlook came as the Seattle-based company posted
its second-ever quarterly profit of $2.6 million on the back of its
free shipping offer for orders over $25, an incentive that it made
permanent on Thursday on the strength of its strong holiday
quarter.
"The stock has gone up pretty high and it is still even high
with this kind of increased guidance," said Safa Rashtchy, analyst
at U.S. Bancorp Jaffray. "The key is the fine print -- they said at
least 15 percent, so how much more?"
Growth of at least 15 percent in 2003 sales would imply revenue
of $4.5 billion or more in 2003 compared with $3.9 billion in 2002.
Amazon shares dipped in after-hours trade to $21.62, after
closing up 2.9 percent at $21.79 on the Nasdaq before the results
were released.
Amazon Chief Executive Jeff Bezos said that the company had
achieved a key objective for 2002, becoming cash flow positive.
Free cash flow, which includes cash outflows for interest and
capital expenditures but excludes proceeds from stock-options, was
$135 million for 2002, compared with negative $170 million for
2001, Amazon said.
For the first quarter of 2003, Amazon said it expects pro forma
net profit of between $5 million, or 1 cent per share, and $20
million, or 5 cents per share.
Amazon's pro forma figures include interest expenses but strip
out a range of charges such as stock-based compensation,
amortization and other charges.
Q4 HOLIDAY BOOSTED RESULTS
Online retailers enjoyed better growth than their
bricks-and-mortar counterparts, as shoppers flocked to the Internet
in search of better deals in a weak U.S. economic environment.
Bezos said that Amazon's free shipping incentive for orders over
$25, which became permanent from Thursday, helped boost holiday
sales as responded to lower prices.
The Web seller of books, music, electronics, kitchen good,
apparel and other goods reported its second-ever net profit in the
fourth quarter, which was $2.6 million, or 1 cent per share,
compared a with a net profit of $5 million, or 1 cent per share, a
year earlier.
While that was a decline, Amazon's fourth quarter on a pro forma
basis more than doubled to a profit of $75 million, or 19 cents per
share, compared with $35 million, or 9 cents per share, a year
earlier.
That also beat Wall Street expectations for a pro forma profit
of 14 cents per share, according to the average of analyst
forecasts on Thomson First Call.
Fourth-quarter revenue rose to $1.43 billion from $1.12 billion
a year earlier. Analysts had forecast fourth quarter revenue of
$1.39 billion.
Full-year revenues for 2002 rose 26 percent to $3.93 billion.
According to BizRate.com, which tracks sales at top retail Web
sites, total online sales during the holiday quarter grew to $17.4
billion, compared with $12.4 billion a year earlier.
REUTERS