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Last Updated: Tuesday, 25 April 2006, 23:11 GMT 00:11 UK
Amazon profits fall 35% on costs
Screen grab taken from the Amazon website
Internet retailer Amazon has seen quarterly profits drop 35%, hit by costs related to updating technology.

Net income was $51m (29m; 48m euros) in the three months to March 31 compared with $78m a year earlier.

However, sales increased nearly 20% to $2.28bn during the quarter, prompting Amazon to raise its full-year sales target to between $9.95bn and $10.5bn.

Earnings the previous year had been boosted by a one-off gain and the firm said technology spending will decline.

"It might be the case that Amazon finally reached the top level of expenses," said Safa Rashtchy, an analyst at Piper Jaffray.

Amazon's shares gained 1.9% in after hours electronic training in New York.

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