Amazon Q2 2012 earnings: net income down 96 percent to $7 million, net sales up 29 percent to $12.83 billion

When internet mega retailer Amazon kicked off its fiscal year this past spring with $13.8 billion in net sales, the prognosis for the quarter ahead was dour, to say the least. At the time, the company projected its Q2 2012 performance would see an operating loss of $40 million to $260 million versus Q2 2011, as well as a slight down tick in revenue at $11.9 billion to $13.3 billion quarter to quarter. Well, the numbers are in and it looks like the forecast was right on the money. The Seattle-based outfit posted $7 million in net income for the quarter, a year over year loss amounting to a whopping 96 percent decrease. As for net sales, that picture's a bit rosier given the 29 percent increase over Q2 2011 that saw the Bezos-backed co. pull in $12.83 billion -- a figure that would have risen to 32 percent were it not for a $272 million hit due to "changes in foreign exchange rates[.]" Operating cash flow for Q2 2012 was down by nearly half at $107MM compared to the same segment last year.

Unsurprisingly, the company's budget Kindle Fire tab -- which has enjoyed relatively weak competition up to now -- is still the number one item across Amazon's site, with titles in its Lending Library growing to over 170,000. Bezos also made note of Prime's growth, pegging that subscription offering's catalog of items at 15 million and highlighting the addition of 18,000 movies and TV shows to its streaming service.

As for the future, the company expects Q3 net sales to grow by at least 19 percent year-over-year, landing somewhere between $12.9 billion and $14.3 billion, with a projected operating loss of $50 million to $350 million. Hit up the PR after the break for the full load of financial highs and lows.

Continue reading Amazon Q2 2012 earnings: net income down 96 percent to $7 million, net sales up 29 percent to $12.83 billion

Amazon Q2 2012 earnings: net income down 96 percent to $7 million, net sales up 29 percent to $12.83 billion originally appeared on Engadget on Thu, 26 Jul 2012 16:09:00 EDT. Please see our terms for use of feeds.