Amazon.com remains consistent, another big loss

Despite skyrocketing online sales in the last three months of 1999 that

exceeded most estimates, Amazon.com still managed to ring up a $185 million

loss. But, after Amazon.com officials said they believe their strategy is

working and will enable the company to reverse its string of quarterly losses,

investors on Wall Street sent the company's stock soaring 13 per cent to $79 a

share.

On the sales side, Amazon.com is clearly winning as revenues nearly tripled

to $676 million from $253 million a year. Amazon chief executive Jeff Bezos and

chief financial officer Warren Jenson pledged that the fourth quarter of 1999

was the peak of the company's losses. "Q4 of 1999 was a high point for the

overall level of operating losses as both a dollar amount and as a percentage of

sales," Jenson said.

"In 2000 we should start to reap the benefits of scale." Jenson

forecast that Amazon's growth for 2000 would be "strong" and that Amazon.com

added 3.8 million customer accounts in the quarter, bringing its customer base

to more than 17 million, almost triple the 6.2 million from a year earlier.

"The current online shopping experience is the worst it will ever be. But, so

far it's attracted 17 million customers, and it will get so much better."