To: Olu Emuleomo who wrote (7218 ) 6/23/1998 5:40:00 PM From: Tradegod Read Replies (2) | Respond to of 164684
Copied from Yhoo post on AMZN's last quarterly filing. "Since inception, the Company has incurred significant losses and as of March 31, 1998, had an accumulated deficit of $42.9 million... "The Company intends to continue to invest heavily in marketing and promotion (and)also offers attractive pricing programs, which have reduced its gross margins.... "Because the Company has relatively low product gross margins, the Company believes that it will continue to incur substantial operating losses for the foreseeable future and that the rate at which such losses will be incurred may increase significantly from current levels.... "Although the Company has experienced significant revenue growth in recent periods, such growth rates are not sustainable and will decrease in the future.... "The Company has not generated any taxable income to date and therefore has not paid any federal income taxes since inception.. "If current cash and cash equivalents are insufficient to satisfy the Company's liquidity requirements, the Company may seek to sell additional equity... "Many of the Company's competitors have longer operating histories, larger customer bases, greater brand recognition and significantly greater financial, marketing and other resources than the Company. Certain of the Company's competitors may be able to secure merchandise from vendors on more favorable terms, devote greater resources to marketing and promotional campaigns, adopt more aggressive pricing or inventory availability policies and devote substantially more resources to Web site and systems development than the Company. Increased competition may result in reduced operating margins, loss of market share and a diminished brand franchise. There can be no assurance that the Company will be able to compete successfully against current and future competitors....