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

To: Jan Crawley who wrote (3558)	4/28/1998 2:49:00 PM
From: Gary Korn	Respond to of 164684

1. Amzn had net interest incomes of $202,000 in year-end 1996, and $1,619,000 in year-end 1997, which contributed to Amzn's total income (or reduced it's bottom-line losses) in the respective periods materially. 2. For the current quarter (which means in the last 3 months); Amzn had exhausted all it's reserves and incurred interest expenses of $385,000. It will get worse. Assuming the current burn rate continues, cash on hand by the end of 2Q98 will be about $14M, so average cash on hand for the quarter will be about $18.5M. Set that off against a loan of $75MM (assuming no change in loan amount), and you get net interest expense of about $1.4M in 2Q98. That is almost 6 cents per share. Gary Korn

To: Jan Crawley who wrote (3558)	4/28/1998 2:52:00 PM
From: Gordon A. Langston	Respond to of 164684

High-Wire Act Amazon's strategy seems 3-fold 1. Name recognition is #1 concern and internet advertising is the cheapest and most logical vehicle. 2. Revenue growth is next and cannot suffer deceleration any time soon so cash burning will continue and might accelerate also. 3. Purchases of other internet media concerns will keep the emphasis away from examining the fiscal stuff and in the hypothetical arena. It's difficult to find anything historical to compare with this phenomenon. If anyone has one I'd like to here the story. Everyone here has a good understanding of what is happening but no one is really sure about the future of AMZN