Amazon.com announced financial results for its first quarter ended March 31, 2003. Net sales were $1.084 billion in the first quarter, compared with $847 million in the first quarter 2002, an increase of 28%.

Net loss was $10 million, or $(0.03) per share, in the first quarter, compared with $23 million in the first quarter 2002, or $(0.06) per share. Pro forma net income in the first quarter, which includes interest expense, grew over $45 million to $40 million, or $0.10 per share, compared with a pro forma net loss of $5 million, or $(0.01) per share, in the first quarter 2002.

"Our strategy of driving down costs to give customers lower prices continues to pay off," said Tom Szkutak, chief financial officer of Amazon.com.

The company said third-party seller transactions (new, used and refurbished items sold on Amazon.com product detail pages by businesses and individuals) grew to 19% of worldwide units in the first quarter, compared with 13% of units a year ago.

International segment sales, representing the Company's U.K., German, French and Japanese sites, grew 68% to $379 million in the first quarter, unit growth was 52%, and excluding the benefit from foreign exchange rates compared with the first quarter 2002, International segment sales grew 45%. International segment operating income was $16 million, a $27 million improvement.

The company also announced that on May 28, 2003, it will redeem all of its outstanding 10% Senior Discount Notes due May 2008, for $277 million, a redemption price of 105% of the $264 million principal amount.