Amazon’s second quarter sales grow 16%, but investors are disappointed

Amazon.com Inc.’s second quarter sales grew 16% to $668 million from $578 million in the second quarter of last year, while pro forma loss from operations improved by 69% to $28 million, or 4% of net sales, compared with $89 million, or 15% of net sales in the second quarter of 2000. Investors, however, were disappointed that sales fell below expectations and they hammered Amazon’s stock price today.

Amazon reported that pro forma net loss, which includes net interest expense, improved by 50% to $58 million compared with $116 million in the second quarter of 2000. Net loss for the quarter improved by 47% to $168 million from $317 million.

"We continue to make progress toward reaching pro forma operating profitability in the fourth quarter of 2001," said Warren Jenson, Amazon.com`s chief financial officer. "This quarter, the U.S. was profitable on a pro forma operating basis for the first time, and this is our sixth sequential quarter of improved absolute pro forma operating results."

Amazon also announced that America Online Inc. will invest another $100 million in Amazon through the purchase of common stock.