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Amazon Posts Net Loss in Q3

Posted on October 25, 2013 by HFN Staff

AmazonSEATTLE-Sales continued to increase, but Amazon posted a net loss of $41 million in the third quarter ended September 30, 2013, compared with a net loss of $274 million in third quarter 2012.

The third quarter 2012 includes a loss of $169 million, the company said, related to its equity-method share of the losses reported by LivingSocial, primarily attributable to its impairment charge of certain assets, including goodwill.

Net sales increased 24 percent to $17.09 billion in the third quarter, compared with $13.81 billion in the year-ago quarter. CEO Jeff Bezos cited a number of new products and projects the online giant has recently undertaken, including the launch of new Paperwhite and Kindle Fires, the Amazon Web Services team's continued work on a big government contract, nine new original TV pilots and the acquisition of TenMarks, a company that helps kids with math.

The company said it expects net sales in the fourth quarter to be between $23.5 billion and $26.5 billion, or to grow between 10 and 25 percent compared with fourth quarter 2012.