Annual Report Summaries

The biggest news for Amazon.com this year is that they expect to achieve free cash flow.
Amazon.com operates in two principle market segments, North America and international.
Net revenue growth for North America remained at 2003 levels and international revenue
declined. Customer acquisition costs include year round free shipping and banner ads
located on third party websites which incur cpc costs or commissions. Also, lower profit margin
products which have been introduced to satisfy customer wants and demands have kept costs high.
As time progresses, these costs are expected to be reduced leaving a reasonable profit margin and
growth necessary for earnings to become and remain positive and increasing on a year over year basis.