Internet retailer Amazon.com reduced its third-quarter losses by 80 percent as international business helped fuel strong sales despite lackluster US retail spending.
For the three months ended Sept. 30, the Seattle-based company reported a net loss of US$35.1 million, or US$0.09 a share, compared with US$170 million, or US$0.46 a share, for the same quarter a year ago.
On a pro forma basis, which excludes non-cash items and restructuring charges, Amazon.com had a profit of US$400,000, or about break-even on a per-share basis, compared with a pro forma net loss of US$58 million, or US$0.16 a share a year ago.
Revenue for the quarter was US$851.3 million, a 33 percent gain over sales of US$639.3 million a year ago.
Analysts polled by Thomson First Call had projected a pro forma loss of US$0.04 a share on revenue of US$809.5 million.
Shares of Amazon.com closed at US$19.86 a share, up US$0.11, on the NASDAQ Stock Market. Shares fell US$0.35 in extended trading after the earnings were released.
"We've lowered prices five times over the last 15 months, and simply put, it's working," said Jeff Bezos, Amazon's chief executive. He added that the company will keep a promotion introduced in August that offers free shipping for orders over US$25.
The company lost US$10 million in the quarter on its shipping costs alone, compared with US$2 million for the year-ago period, but said the promotion helped drive sales higher.
"They did well given the retail environment," said Steve Weinstein, an analyst with Pacific Crest Securities.
But he noted that much of the sales boost came from international sales -- which grew 90 percent.
"The US businesses are growing at a reasonable rate but nothing really astounding. I'm a little surprised that they didn't do better given the revenue growth," Weinstein said.
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