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

To: Jan Crawley who wrote (4332)	5/14/1998 1:33:00 PM
From: Kailash	Read Replies (2) \| Respond to of 164684

What's going on with Amzn - is everybody out to lunch? Volume has dropped to zero... Kailash

To: Jan Crawley who wrote (4332)	5/17/1998 6:40:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

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