10-QPeriod: Q3 FY2001

AMAZON COM INC Quarterly Report for Q3 Ended Sep 30, 2001

Filed October 30, 2001For Securities:AMZN

Summary

Amazon.com, Inc. reported its third-quarter 2001 financial results, concluding September 29, 2001. The company saw a slight increase in net sales year-over-year for the quarter, reaching $639.3 million compared to $637.9 million in the prior year. However, this minimal growth was overshadowed by a significant net loss of $169.9 million, an improvement from the $240.5 million net loss in the same quarter of 2000. This loss was influenced by restructuring charges and other non-operating items. The company's cash position remained a key focus, with cash and cash equivalents totaling $432.3 million, down from $822.4 million at the end of 2000, indicating a substantial burn rate. Despite the continued losses, management highlighted efforts to streamline operations and control costs, including the ongoing impact of a restructuring plan initiated earlier in the year. For the first nine months of 2001, net sales grew by 12% to $2.01 billion, with a net loss of $572.4 million, also an improvement from the $866.1 million loss in the comparable period of 2000. The company's strategic initiatives, including international expansion and the development of its services segment, continued to be a focus. Management expressed confidence in future pro forma operating profitability and maintained sufficient liquidity for at least the next 12 months, though the path to overall profitability remained a significant concern for investors.

Key Highlights

  • 1Net sales for the third quarter of 2001 were $639.3 million, a marginal increase of less than 1% compared to $637.9 million in the third quarter of 2000.
  • 2The company reported a net loss of $169.9 million for the third quarter of 2001, an improvement from the $240.5 million net loss in the same period of 2000.
  • 3For the first nine months of 2001, net sales increased by 12% to $2.01 billion, while the net loss decreased to $572.4 million from $866.1 million in the prior year.
  • 4Cash and cash equivalents decreased significantly to $432.3 million as of September 30, 2001, down from $822.4 million at December 31, 2000.
  • 5The company incurred substantial restructuring-related charges of $177 million for the nine months ended September 30, 2001, as part of an operational restructuring plan.
  • 6International segment net sales showed strong growth, increasing by 58% in the third quarter and 69% for the nine-month period compared to the prior year.
  • 7The company reiterated its expectation of future pro forma operating profitability but continued to report significant net losses based on GAAP.

Frequently Asked Questions

In the third quarter of 2001, Amazon.com reported net sales of $639.3 million, a slight increase from $637.9 million in the same quarter of 2000. However, the company continued to experience a significant net loss, reporting $169.9 million for the quarter, though this was an improvement from the $240.5 million net loss in the prior year's third quarter.

Amazon's cash and cash equivalents significantly decreased from $822.4 million at the end of 2000 to $432.3 million as of September 30, 2001. This reflects ongoing cash burn from operations and investing activities.

Amazon implemented an operational restructuring plan in early 2001 to reduce costs. For the nine months ended September 30, 2001, the company recorded $177 million in restructuring-related and other charges, which impacted its operating results but was intended to improve future profitability.

While the company has reported improving net losses compared to the previous year, it continues to operate at a net loss. Management expressed expectations for future pro forma operating profitability, but GAAP net losses persist. The company maintains it has sufficient liquidity for at least the next 12 months.