Amazon today announced financial results for the last quarter of 2011, reporting a 58-percent decline in net income year over year and a lower-than-expected increase in net sales. This despite the fact that its Kindle devices, including the Fire, sold really well in this period. Hit the jump for more.
“Net sales increased 35% to $17.43 billion in the fourth quarter, compared with $12.95 billion in fourth quarter 2010,” Amazon said in a statement. This is well below the Street’s expectation of around $18.3 billion, which would have translated into an increase of over 40 percent.
“Net income decreased 58% to $177 million in the fourth quarter, or $0.38 per diluted share, compared with net income of $416 million, or $0.91 per diluted share, in fourth quarter 2010,” the company further said. These disappointing results can be attributed to its high operating expenses, which rose 38 percent year-over-year in the fourth quarter.
The company seems to be quite pleased with sales of its Kindle devices. It revealed that during the nine-week holiday period ending December 31, 2011, sales of its Kindle devices increased 177 percent when compared to the same period last year.
“We are grateful to the millions of customers who purchased the Kindle Fire and Kindle e-reader devices this holiday season, making Kindle our bestselling product across both the U.S. and Europe,” said Jeff Bezos, founder and CEO of Amazon.com. “Our millions of third-party sellers had a tremendous holiday season with 65% unit growth and now represent 36% of total units sold.”