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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 249.43

-1.8%

Nov 4 3:59 PM EST

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To: Glenn D. Rudolph who wrote (112887)	12/17/2000 11:45:56 PM
From: swimmygoof	Read Replies (1) of 164684

I do not agree even closely to a break even quarter excluding Japan and France. That is not even an issue though. Much of the increased revenue is coming from France and Japan but you want to exclude the expenses? I have a problem with that type of accounting in that it does not work. I wasn't not including expenses....just saying that a large portion of the $70 million will be due to disproportionate startup losses in Japan and France. Yes, the revenues would be less too. Where did you get the 5% number for Toys R Us? The terms were not disclosed so I am curious as to how you arrived at that. I'm sorry I can't seem to find it. It was in some analyst report several months ago. The terms of the deal were that Amazon would handle all fulfillment (recognizing revenue/expenses for shipping) and ToysRUs would pay them 5% of revenue (est. $250 million...5% of which is $12.5 million) plus a fixed fee, which I would guess is about $10 million. Figuring that fulfillment is near breakeven, that's $22.5 million of profit for the segment. The toys segment was a big loser last year. This year it is a big contributor.

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