by CIO Staff’s Revenue Up in Q1, Earnings Drop

Apr 26, 20062 mins
Outsourcing grew its revenue in its first quarter, which ended March 31, but its net income fell, as the e-commerce giant faced higher operating expenses compared with the same quarter last year, the company announced Tuesday.

Revenue came in at US$2.28 billion, up 20 percent and exceeding the consensus expectation of $2.23 billion from analysts polled by Thomson Financial.

Net income was $51 million, or $0.12 per share, matching analysts’ consensus expectation, but down from $78 million, or $0.18 per share, in 2005’s first quarter.

Operating expenses grew to $441 million, including a significant jump in technology and content spending, from $350 million, the company said.

Looking ahead, expects revenue in the second quarter in the range of $2.03 billion and $2.18 billion, up between 16 percent and 24 percent compared with 2005’s second quarter. For the full year, the company is forecasting revenue in the range of $9.95 billion to $10.5 billion, up between 17 percent and 24 percent. warned that its operating profit for the year could be negatively impacted by as much as $50 million if it doesn’t prevail in its appeal of a recent court ruling that let end a contract between the companies.

-Juan Carlos Perez, IDG News Service

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