Taking the income statement further:
AMAZON.COM, INC.
STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
----------------------------------------------------------------------------------------
THREE MONTHS ENDED
MARCH 31,
------------------------
1998 1997
-------- --------
----------------------------------------------------------------------------------------
Net sales ............................................... $ 87,375 $ 16,005
Cost of sales ........................................... 68,054 12,484
-------- --------
Gross profit ............................................ 19,321 3,521
Operating expenses:
Marketing and sales .................................. 19,503 3,906
Product development .................................. 6,729 1,575
General and administrative ........................... 1,963 1,142
-------- --------
Total operating expenses .......................... 28,195 6,623
Loss from operations .................................... (8,874) (3,102)
Interest income ......................................... 1,640 64
Interest expense ........................................ (2,025) --
-------- --------
Net loss ................................................ $ (9,259) $ (3,038)
======== ========
Pro forma basic and diluted loss per share .............. $ (0.20) $ (0.08)
======== ========
Shares used in computation of pro forma basic and diluted
loss per share ....................................... 46,622 38,804
======== ========
Amazon placed no expenses into general operations. They have no costs to stock the books, locate them, box them and ship them. Every bit of the cost of daily oprations is in marketing including the bank's discount rates on the credit cards. It is amazing how a firm can buy, store, box, ship, take orders, etc of $87 million of books without having any operating costs. They only have marketing and administrative costs.
Glenn |
