It's still only showing a pro forma profit, but discounts are making real black ink more likely for Amazon.
International business fueled strong third-quarter sales for Amazon.com Inc., helping the Internet retailer reduce its losses by 80% in spite of weak U.S. spending.
For the quarter ended Sept. 30, Amazon reported a net loss of $35.1 million, or 9 cents a share. That's a big drop from a loss of $170 million, or 46 cents, a year ago. Excluding noncash items and restructuring charges, the retailer had a profit of $400,000, or about break-even on a per-share basis, compared with a pro forma net loss of $58 million, or 16 cents, a share a year ago.
Amazon's revenue was $851.3 million, a 33% gain from $639.3 million a year ago.
The company issued a statement saying that it's lowered prices five times during the last 15 months in order to bring in more business. The company will continue a promotion introduced in August that offers free shipping for orders of more than $25. The company lost $10 million in the quarter on its shipping costs alone, compared with $2 million a year ago, but it said sales were higher because of the promotion.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.