Amazon income down even as revenue grows

I love my Kindle Touch, but living with the device for a month has revealed a few minor issues I wasn't expecting.
Sarah Tew/CNET
Amazon, kindle, kindle touch
Kindle Touch
Sarah Tew/CNET

(AP) SEATTLE - Amazon's fourth-quarter net income dropped sharply, weighed down by higher operating expenses even as revenue grew. Inc. said Tuesday that its net income was $177 million, or 38 cents per share, in the three months that ended Dec. 31. That's down from $416 million, or 91 cents per share, a year earlier.

Revenue grew 35 percent to $17.4 billion, below Wall Street's expectations of $18.3 billion, according to FactSet.

Amazon's operating expenses grew 38 percent, to $17.2 billion. The company has been investing heavily in new sales fulfillment centers so it can grow its business.

For the current quarter, Amazon is forecasting $12 billion to $13.4 billion in revenue. Analysts are expecting $13.4 billion.