With the end of the last financial quarter, companies have started announcing their quarterly earnings, some of them declared decent revenues, while some showed decline in their profits due to decrease in sales. However, Amazon came up with a strange report when it issued its second quarter results on Thursday, July 25th. The multinational company showed a loss in its earnings despite of the fact that its revenue increased. Amazon delivered a loss of $7 million by showing -$0.02 earnings per share, while the revenue of the company was $15.7 billion.
In contrast to this result, Amazon was able to post $0.01 earnings per share on $12.83 billion revenue during the same period last year. It is because of the previous results analysts were expecting that Amazon would post earnings of $0.06 per share together with revenue of $15.7 billion, but that never happened. Below are further details on the second quarter results of Amazon, which the company has revealed in its official press release:
“Operating cash flow increased 41% to $4.53 billion for the trailing twelve months, compared with $3.22 billion for the trailing twelve months ended June 30, 2012. Free cash flow decreased 76% to $265 million for the trailing twelve months, compared with $1.10 billion for the trailing twelve months ended June 30, 2012. Free cash flow for the trailing twelve months ended June 30, 2013 includes fourth quarter 2012 cash outflows for purchases of corporate office space and property in Seattle, Washington, of $1.4 billion.
Common shares outstanding plus shares underlying stock-based awards totalled 474 million on June 30, 2013, compared with 468 million one year ago.
Net sales increased 22% to $15.70 billion in the second quarter, compared with $12.83 billion in second quarter 2012. Excluding the $392 million unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 25% compared with second quarter 2012.
Operating income decreased 26% to $79 million in the second quarter, compared with $107 million in second quarter 2012. The unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $18 million.
Net loss was $7 million in the second quarter, or $0.02 per diluted share, compared with net income of $7 million, or $0.01 per diluted share, in second quarter 2012.
“We’re so grateful to our customers for their response to Kindle devices and our digital ecosystem. This past quarter, our top 10 selling items worldwide were all digital products – Kindles, Kindle Fire HDs, accessories and digital content,” said Jeff Bezos, founder and CEO of Amazon.com. “The Kindle service keeps getting better. The Kindle Store now offers millions of titles including more than 350,000 exclusives that you won’t find anywhere else.
Prime Instant Video has surpassed 40,000 titles, including many premium exclusives like Downton Abbey and Under the Dome. And we’ve added more than a thousand books, games, educational apps, movies and TV shows to Kindle FreeTime Unlimited, bringing together in one place all the types of content kids and parents love.””
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