Amazon.com reported its financial results for the second quarter today. These included a decrease in net income, which fell to $52 million compared to $76 million in last year’s second quarter.
The company did have about $51 million more in income tad expenses this year. Amazon’s operating cash flow for the last 12 months grew 52% to $624 million compared to $410 million the 12 months before that.
Amazon’s net sales increased 26% to $1.75 billion in the second quarter, compared with $1.39 billion in second quarter 2004. Excluding the $25 million benefit from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 25% compared with second quarter 2004.
“Amazon Prime members love getting unlimited two-day shipping for free with no minimum order size,” said Amazon founder and CEO Jeff Bezos.
This Amazon Prime that Mr. Bezos speaks of is the company’s first membership program. It was launched earlier this year, and allows members to get this shipping discount for $79 a year.
“Though expensive for the company, Amazon Prime creates a premium experience for customers who join, and as a result we hope they’ll purchase more from us in the long term,” added Bezos.
Amazon’s operating income increased 21% to $104 million in the second quarter, compared with $86 million in second quarter 2004. Common shares outstanding plus shares underlying stock-based awards outstanding totaled 438 million at the end of the quarter, compared with 434 million last year.
Chris is a staff writer for murdok. Visit murdok for the latest ebusiness news.
