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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (70984)	7/30/1999 10:36:00 PM
From: Michael Young	Read Replies (2) \| Respond to of 164684

"On February 3, 1999, Amazon.com completed the offering of $1.25 billion Convertible Notes. Interest on the Convertible Notes is payable semi-annually. The Company believes that current cash and marketable securities balances will be sufficient to meet its anticipated cash needs for at least the next 12 months. . . We have incurred significant losses since we began doing business. As of March 31, 1999, we had an accumulated deficit of $223.7 million. To succeed we must invest heavily in marketing and promotion and in developing our product, technology and operating infrastructure. In addition, the expenses associated with our recent acquisitions, and interest expense related to our outstanding notes, will adversely affect our operating results. Our aggressive pricing programs have resulted in relatively low product gross margins, so we need to generate and sustain substantially higher revenues in order to become profitable. Although our revenues have grown, we cannot sustain our current rate of growth. Our percentage growth rate will decrease in the future. For these reasons we believe that we will continue to incur substantial operating losses for the foreseeable future, and these losses may be significantly higher than our current losses."