[R]8:00AM New York—Amazon.com Inc fourth quarter profit jumps 112% on solid international sales.[/R]

Revenue Review

Amazon.com Inc reported Wednesday fourth quarter net sales climbed 42% to $5.67 billion from $3.99 billion a year ago, boosted by rapid sales growth across the board, particularly on the international market.

Excluding foreign currency volatility and benefits of $0.20 billion thereof, net sales gained 37%.

Amazon said sales from the international division rose 46%, and were up 40% in North America.

Worldwide Media sales rose 33% while sales from the Worldwide Electronics and Other General Merchandise surged 58%.

For fiscal 2007, Amazon posted net sales increase of 39% to $14.84 billion or 35% excluding the $0.40 billion exchange gains.

In 2006, the company reported revenues of $10.71 billion.

Earnings Review

In the quarter, profit at Amazon rocketed 112% to $207 million compared with $98 million posted in the year ago quarter.

Operating income increased 38% to $271 million from $197 million, and excluding exchange rate gains of $14 million, operating income was up 31%.

Amazon said earnings jumped 108% to 48 cents per share from 23 cents per meeting expectations, according to analysts surveyed by Thomson Financial.

Operating margins remained under pressure, rising to 5.8% from 5.7% in the fourth quarter of 2006.

For fiscal 2007, net income rose 150% to $476 million or $1.12 per share from $190 million or $0.45 per share in the prior year.

Operating income increased 69% to $655 million, or 61% excluding the $29 million exchange gain from $389 million in 2006.

Segment Analysis

Sales growth in the international division rose ahead of domestic sales. From this unit, sales climbed 46% to $2.59 billion, and minus foreign exchange gains, they were up 35%. In the corresponding quarter in 2006, sales stood at $1.77 billion.

North America segment sales lifted higher 40% to $3.08 billion while Worldwide Media sales at $3.33 billion, were up 33% from $2.5 billion previously.

Electronics & Other General Merchandise sales grew 58% to $2.21 billion and increased to 39% of worldwide net sales compared with 35% in 2006.

In the quarter, Amazon said free cash flow rose 143% to $1.18 billion, as the company shipped over 4 million units for third parties who make use of Fulfillment by Amazon service.

Amazon.com shipped over half-a-million units in fourth quarter 2007 on behalf of sellers who utilized the Fulfillment by Amazon service.

The retailer also introduced the Amazon Kindle, a wireless portable reader that offers prompt wireless downloads in excess of 90,000 books etc to a high resolution electronic paper display. Demand for the product is very high, said Amazon.