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Amazon.com Sees Greater Losses
-- 9/7/98
In its recent second-quarter filing with the Securities and Exchange Commission, Amazon.com said that due to costs associated with its recent acquisitions -- including Junglee and PlanetAll, which are not yet profitable -- the company anticipates that it will continue to incur operating losses for the foreseeable future and that the acquisitions will likely cause an increase in the rate at which those losses occur. Amazon has an accumulated deficit of $64 million.
Losses notwithstanding, Amazon.com reports its plans to continue to invest in both domestic and international expansion. The purchase of Bookpages and Telebook were aimed at increasing Amazon's presence in the international market. International sales fell in the first half of 1998, to 21% of total revenues, from 28% of sales in the first half of 1997.

The company is taking another step to increase its international business; last week it announced a global expansion of its existing agreement with Yahoo! Under the new arrangement, Amazon.com merchant buttons are now featured on Yahoo! in Asia, France, Denmark, Sweden, Australia and New Zealand. The program is expected to be rolled out to other Yahoo! world sites within the next few months.

Domestically, Amazon.com said it is adding 8520 sq. ft. to its Seattle warehouse, which will bring the facility up to 93,000 sq. ft. In addition, Amazon reports that it may open one or more distribution centers within the next 12 months.
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