Amazon Com Inc – ‘8-K’ for 4/27/98 – EX-99.3

As of:  Tuesday, 4/28/98   ·   For:  4/27/98   ·   Accession #:  891020-98-662   ·   File #:  0-22513

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report Dated 4/27/1998                         4     12K 
 2: EX-99.1     Press Release Regarding the Stock Split                1      8K 
 3: EX-99.2     Press Release Regarding the Acquisitions               2     11K 
 4: EX-99.3     Press Release Regarding the First Quarter Earnings     5     22K 

EX-99.3   —   Press Release Regarding the First Quarter Earnings

EX-99.3
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 AMAZON.COM ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER 1998

Cumulative Customer Accounts Increased 50% Quarter-to-Quarter to
2,260,000.                                                                      

Amazon.com Now 3rd Largest Bookseller in the US                 

      SEATTLE April 27 /PRNewswire/ -- Amazon.com, Inc. (Nasdaq: AMZN) today
announced financial results for the first quarter of 1998.         ----         

        Net sales for the first quarter ended March 31, 1998 were $87.4 million,
a 32 percent increase over net sales of $66.0 million reported for the fourth   
quarter ended December 31, 1997. Net sales increased 446 percent over net sales 
of $16.0 million reported for the first quarter of 1997. Net loss for the first 
quarter ended March 31, 1998 was $9.26 million, or $0.40 per share, compared    
with a net loss in the quarter ended December 31, 1997 of $9.33 million, or     
$0.41 per share. The company reported a net loss of $3.04 million or $0.16 per  
share in the quarter ended March 31, 1997.                                      

        Amazon.com also announced that cumulative customer accounts grew to over
2,260,000 at March 31, 1998, an increase of 50 percent from 1,510,000 customer  
accounts at December 31, 1997 and 564 percent from 340,000 customer accounts at 
March 31, 1997. Repeat customer orders represented more than 60 percent of      
orders placed during the quarter ended March 31, 1998.                          

        The Web measurement services continued to highlight Amazon.com's growing
reach among Internet users and strengthening market leadership: in March,       
Amazon.com was ranked in the top 20 across all Internet sites in all major      
market surveys (Media Metrix and Relevant Knowledge). In addition, not only was 
Amazon.com the leading online bookseller in these surveys, it was the leading   
online shopping site.                                                           

       "We are very pleased with our acceleration in new customer acquisition:
it took us 27 months to serve our first million customers, and less than 6      
months to serve our second million," said Jeff Bezos, Amazon.com president and  
chief executive officer. "Our strong revenue growth has now made us the third   
largest bookseller in the US, online or offline. We believe that our leadership 
position in the online market allows us to offer our customers the benefits of  
Amazon.com selection, convenience, price                                        

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and personalized services for an expanded range of products, such as music. And 
we are now inviting our customers to come help build the best music store on the
Web."                                                                           

 Separately, Amazon.com today announced that it has acquired three
leading Internet companies: Bookpages Limited, Telebook, Inc. and Internet Movie
Database Limited. Online retailers Bookpages and Telebook are fundamental       
components of Amazon.com's expansion into the European marketplace, and Internet
Movie Database is a key underpinning for Amazon.com's eventual entry into online
video sales.                                                                    

"With these acquisitions, we have accelerated our expansion into
European e-commerce and acquired a foundation for a best-of-breed video store.  
These acquisitions will enable Amazon.com to offer a new set of consumers the   
same combination of selection, service and value that we now provide our US book
customers. We remain committed to moving quickly to solidify and extend our     
current market leadership position in books while pursuing these new            
opportunities. This will require aggressive future investment in building our   
business and brand, expanding our product offerings, launching international    
operations and integrating our recent acquisitions."                            

   Bookpages (http://www.bookpages.co.uk) is one of the largest online
bookstores in the United Kingdom, providing access to all 1.2 million UK books  
in print. Telebook (http://www.telebuch.de), operating through its ABC          
Bucherdienst subsidiary, is Germany's number one online bookstore, with a       
catalog of nearly 400,000 German language titles. Originally launched in 1990,  
Internet Movie Database (http://www.imdb.com) is a comprehensive repository     
for movie and television information on the Internet, and is an excellent       
example of genuine community on the Internet.                                   

        Each of the acquisitions will be accounted for under the purchase method
of accounting. The company will incur total charges of approximately $55 million
in connection with all three transactions. Consideration was comprised of cash  
and common stock, and the company anticipates issuing an aggregate of           
approximately 540,000 shares of common stock as a result of these transactions. 

        Last week, Amazon.com invited music enthusiasts everywhere to contribute
to developing the music store of their dreams and launched a pilot version of   
its online music area (accessible from the Amazon.com home page). Customers,    
artists, music industry professionals, and other music lovers can put their     
personal stamp on the music store Amazon.com is now building by contributing    
their ideas and music reviews.                                                  

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        In February, Amazon.com launched Amazon.com Advantage, an innovative new
program designed to increase the visibility and sales of titles from independent
publishers and authors. It will help level the playing field for smaller        
publishers and authors by providing the tools and framework to ensure their     
books appear more often, more prominently, and with 24-hour availability        
throughout Amazon.com's catalog of 3 million book, music, and other titles.     

       In March, Amazon.com launched Amazon.com Kids, a comprehensive resource
for children's and young adult books. Amazon.com Kids features a catalog of more
than 100,000 books for children, teens, and parents.                            

  Separately, Amazon.com today announced that its Board of Directors
approved a 2-for-1 split of its common stock. Shareholders will receive an      
additional share of common stock for every share held on the record date of May 
20, 1998. The additional shares will be payable on June 1, 1998.                

  Amazon.com, Inc., Earth's Biggest Bookstore, is the largest online
retailer of books. Amazon.com offers a catalog of more than 3 million book,     
music, and other titles, plus easy-to-use search and browse features, e-mail    
services, personalized shopping services, secure Web-based credit card payment, 
and direct shipping to customers. Amazon.com has virtually unlimited online     
shelf space and offers customers a vast selection through an efficient          
search-and-retrieval interface, as well as streamlined ordering through         
1-Click(SM) technology. Amazon.com pioneered the concept of syndicated selling  
on the Internet and has more than 40,000 members in its Associates Program      
including AOL.com, Yahoo!, Netscape, Excite, the AltaVista Search Service, the  
@Home Network, the Prodigy Shopping Network, and iVillage.                      

        This announcement contains forward-looking statements that involve risks
and uncertainties that include, among others, Amazon.com's limited operating    
history, the unpredictability of its future revenues, and risks associated with 
capacity constraints, management of growth, and new business opportunities. More
information about factors that potentially could affect Amazon.com's financial  
results is included in the company's Annual Report on Form 10-K for the year    
ended December 31, 1997, both filed with the Securities and Exchange Commission.

    NOTE: Amazon.com, Earth's Biggest Bookstore, and 1-Click are service
marks of Amazon.com, Inc. All other names are trademarks of their respective    
owners.                                                                         

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AMAZON.COM, INC.                                                                
Statements of Operations                                                        
(in thousands, except per share amount)                                         

                                                                [Download Table]

                                                   Quarter Ended March 31, 
                                                   ----------------------- 
                                                     1998            1997  
                                                   --------       -------- 
                                                          (Unaudited)      
                                                                           

Net sales                                           $87,375        $16,005 
Cost of sales                                        68,054         12,484 
                                                   --------       -------- 
Gross profit                                         19,321          3,521 

Operating expenses:                                                        
     Marketing and sales                             19,503          3,906 
     Product development                              6,729          1,575 
     General and administrative                       1,963          1,142 
                                                   --------       -------- 
          Total operating expenses                   28,195          6,623 

Loss from operations                                 (8,874)        (3,102)
Interest income                                       1,640             64 
Interest expense                                     (2,025)            -- 
                                                   --------       -------- 
Net loss                                            $(9,259)       $(3,038)
                                                   ========       ======== 
Pro forma basic and diuted loss per share           $ (0.40)       $ (0.16)
                                                   ========       ======== 

Shares used in computation of pro forma basic                              
     and diluted loss per share                      23,311         19,402 
                                                   ========       ======== 

On April 27, 1998, the Company announced a two-for-one stock split, effective   
June 1, 1998. The share and per share data have not been restated to reflect    
this split.                                                                     

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AMAZON.COM, INC.                                                                
Balance Sheets                                                                  
(in thousands except per share data)                                            

                                                                [Download Table]

                                                   March 31,   December 31,
                                                     1998           1997   
                                                   ---------   ---------   
                                                  (Unaudited)  (Audited)   
                                                                           
ASSETS                                                                     
Current assets:                                                            
     Cash and cash equivalents                      $ 98,600    $109,810   
     Short-term investments                           18,220      15,256   
     Inventories                                      11,674       8,971   
     Prepaid expenses and other                        4,399       3,298   
                                                   ---------   ---------   
         Total current assets                        132,893     137,335   

Fixed assets, net                                      9,773       9,265   
Deposits                                                 293         166   
Deferred charges                                       2,048       2,240   
                                                   =========   =========   
         Total assets                               $145,007    $149,006   
                                                   =========   =========   

LIABILITIES & STOCKHOLDERS' EQUITY                                         
Current liabilities:                                                       
     Accounts payable                               $ 34,374    $ 32,697   
     Accrued advertising                               5,349       3,454   
     Accrued product development                          --          --   
     Other liabilities and accrued expenses            8,071       6,167   
     Current portion of debt                             684       1,500   
                                                   ---------   ---------   
         Total current liabilities                    48,478      43,818   

Long-term debt                                        76,521      76,521   
Long-term lease obligations                              181         181   

Stockholders' equity:                                                      
     Preferred stock, $0.01 par value -                                    
         Authorized, 10,000,000 shares                                     
         Issued and outstanding - none                    --          --   

     Common stock, $0.01 par value -                                       
         Authorized, 100,000,000 shares                                    
         Issued and outstanding, 24,162,932                                
            and 23,937,169 shares, respectively          242         239   

     Additional paid-in capital                       63,952      63,792   
     Deferred compensation                            (1,493)     (1,930)  
     Accumulated deficit                             (42,874)    (33,615)  
                                                   ---------   ---------   
         Total stockholders' equity                   19,827      28,486   
                                                   =========   =========   
      Total liabilities and stockholders' equity    $145,007    $149,006   
                                                   =========   =========   

On April 27, 1998, the Company announced a two-for-one stock split, effective   
June 1, 1998. The share and per share data have not been restated to reflect    
this split.                                                                     

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘8-K’ Filing		Date		First		Last			Other Filings
		6/1/98		3		5
		5/20/98		3
Filed on:		4/28/98
For Period End:		4/27/98		4		5			8-K
		3/31/98		1					10-Q
		12/31/97		1		3			10-K405,  ARS
		3/31/97		1
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