An Amazon.com executive said Monday that 1999 will be a big year for making money -- and an even bigger one for spending it.
The online book and music retailer said it plans to increase spending in 1999 on everything: from boosting its brand, to building a warehouse, to updating computer systems. The goal, said chief financial officer Joy Covey, will be to process orders faster, smoother, and cheaper.
In the short-run, however, it will be expensive.
Covey cautioned against applying "income-sheet driven" analysis to a company like Amazon, which she described as "night-and-day different from a typical retailer."
In a speech at the NationsBanc Montgomery Technology Week conference, Covey told investors not to expect profits in 1999. The 3-year-old retailer, which had revenue of US$253 million in the fourth quarter, has yet to turn a profit.
While Covey expects Amazon's revenue to grow each quarter in 1999, the money customers spend will be outpaced by the company's spending as it expands in Germany and the United Kingdom, and bulks up its already sizable US operations.
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Bucks for tunes: Spinner.com, an online radio station, said Monday it raised US$12 million from investors, including music heavyweight Sony Music Entertainment, chip king Intel and Amerindo Investment Advisors, a prestigious venture capital firm.
Spinner.com, a site that runs music channels, will use the money to spread the word about itself, build up its e-commerce capabilities, and set up partnerships with US and international partners, the company said.
"Like Spinner.com, Sony recognizes the enormous potential for the Internet and music, and is pleased to be a part of its growth," said Fred Ehrlich, a general manager for Sony Music Entertainment's new technology.
Spinner.com, based in Burlingame, California, was founded in 1996. It broadcasts more than 1.5 million songs a day through channels ranging from disco and classical. The site uses RealAudio software to send the tunes.
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Theglobe buys mall: Homepage host theglobe.com (TGLO) said it has agreed to acquire Azzaz.com, an online department store, for about US$20.2 million in stock.
Based in Kirkland, Washington, Azazz.com sells everything from apparel to office supplies. Theglobe.com will fold it into its own service in an effort to keep pace with rivals like Xoom.com, which derives a big chunk of its revenue from e-commerce.
Under terms of the agreement, theglobe.com will hand over approximately 307,000 shares to assume full ownership of factorymall.com, the parent company of Azzaz.com.
Theglobe.com's shares jumped $3.50, about 6 percent, to $69.50 by late morning on the Nasdaq.
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Spoken word on a handheld: Audible is bringing audio books and newspapers to palm-sized PCs running Microsoft's Windows CE operating system, the company said Monday.
This March, WinCE devices will be able to play Audible's spoken word programming, including content from The Economist, Stephen King novels, National Public Radio, and the Nightly Business Report.
Audible, based in Wayne, New Jersey, sells downloadable audio books and newspapers and a playback device through its Web site. Audible said last month it would bring its content to the Rio handheld playback device from Diamond Multimedia Systems.
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Stop trading: The US Securities and Exchange Commission halted stock trading of six Internet-related companies because of their ties to a stock promoter banned from the brokerage industry for violating securities laws.
The SEC, in announcing the 10-day trading halts, also cited "questions that have been raised about the adequacy and accuracy of publicly disseminated information" about the companies.
The six companies are USA Talks, Citron, Electronic Transfer Associated, Invest Holdings Group, Polus, and Smartek. Shares of each have soared at least 57 percent and up to 382 percent this year.
With the exception of USA Talks, all of the companies had ties to stock promoter Peter Tosto, who also goes by the name of Peter Lybrand. He was barred from the brokerage industry last year.
