Amazon.Com Announces 28% Sales Growth Fueled by Lower Prices and Free Shipping.

Business Wire › April 24, 2003

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Amazon.Com Announces 28% Sales Growth Fueled by Lower Prices and Free Shipping.

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SEATTLE--(BUSINESS WIRE)--April 24, 2003

Meaningful Innovation Leads, Launches, Inspires Relentless

Amazon Visitor Improvements

Amazon.com, Inc. (Nasdaq:AMZN) today announced financial results for its first quarter ended March 31, 2003.

Operating cash flow was $164 million for the trailing four quarters, compared with $46 million for the four quarters ended March 31, 2002. Free cash flow was $123 million for the trailing four quarters, compared with $10 million for the four quarters ended March 31, 2002.

Common shares outstanding plus shares underlying stock-based employee awards totaled 432 million at March 31, 2003, a decrease of 1% compared with a year ago.

Net sales were $1.084 billion in the first quarter, compared with $847 million in the first quarter 2002, an increase of 28%.

Net loss was $10 million, or $(0.03) per share, in the first quarter, compared with $23 million in the first quarter 2002, or $(0.06) per share. Pro forma net income in the first quarter, which includes interest expense, grew over $45 million to $40 million, or $0.10 per share, compared with a pro forma net loss of $5 million, or $(0.01) per share, in the first quarter 2002.

"Our strategy of driving down costs to give customers lower prices continues to pay off," said Tom Szkutak, chief financial officer of Amazon.com. "In the first quarter, customers took advantage of Free Super Saver Shipping and broad everyday low prices, which created our first-ever non-holiday quarter with sales over $1 billion, but this was only possible because we reduced our costs in virtually every area of our business."

In addition to its year-round Free Super Saver Shipping on orders over $25 at www.amazon.com, the Company offers free shipping options at its U.K., German, French, Japanese and Canadian sites. Amazon.com also offers 30% off books over $15 and significantly lowered prices on electronics, tools, and bestselling CDs and DVDs.

"Meaningful innovation leads, launches, inspires relentless Amazon visitor improvements," said Jeff Bezos, founder and chief executive officer of Amazon.com. "We are ...

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