Amazon fails to break even

In the last three months of 2001, the firm stunned analysts by reporting its first ever profit.

But it has failed to repeat the positive performance since then, racking up losses of $94m during April, May and June.

Despite the loss, the firm reported strong international sales and raised its outlook for the rest of the year.

International enthusiasm

Sales jumped 21% to $806m during the three monthly period, with overseas sales driving the expansion.

International sales from Amazon's British, German, French and Japanese sites rose by a massive 70% to $218m.

Electronics, tools and kitchen sector sales also showed some of the best growth, as Amazon continues its expansion away from the traditional books and CDs business.

And its net loss of $94m is significantly less than that during the same three months a year earlier when it lost $168m.

Rollercoaster shares

Amazon shares fell 6% ahead of the results, and edged further down in after-hours trading.

Despite Tuesday's losses, Amazon's shares have risen 34% so far this year, recovering from two years of dot.com misery.

The firm also tried to win back investor trust, by changing the way it reports its account.

In a first among major Internet businesses, Amazon has said it will expense all its stock options by the beginning of 2003.