Amazon.com grew its revenue in its first quarter, ended March 31, 2006, but its net income fell, as the e-commerce giant faced higher operating expenses compared with the same quarter last year, the company announced Tuesday.
Revenue came in at US$2.28 billion, up 20 percent and exceeding the consensus expectation of US$2.23 billion from analysts polled by Thomson Financial.
Net income was US$51 million, or US$0.12 per share, matching analysts' consensus expectation, but down from US$78 million, or US$0.18 per share, in 2005's first quarter.
Operating expenses grew to US$441 million, including a significant jump in technology and content spending, from US$350 million, the company said.
Looking ahead, Amazon.com expects revenue in the second quarter in the range of US$2.03 billion and US$2.18 billion, up between 16 percent and 24 percent compared with 2005's second quarter. For the full year, the company is forecasting revenue in the range of US$9.95 billion and US$10.5 billion, up between 17 percent and 24 percent.
Amazon.com warned that its operating profit for the year could be negatively impacted by as much as US$50 million if it doesn't prevail in its appeal of a recent court ruling that let Toysrus.com end a contract between the companies.