This summary is based on the first quarter fiscal 2007 earnings call conducted by Amazon.com, Inc. (AMZN: chart) on April 24, 2007.

Key Investors Issues

- EPS were 26 cents a share compared to 12 cents a share last year.
- Net income was $111 million compared to $51 million or a year ago.
- Sales rose to $3.02 billion compared to $2.28 billion from a year ago.

First Quarter Highlights

Worldwide revenue grew 32% to $3.02 billion or 29% excluding the $84 million favorable impact from foreign exchange rates.

Media revenue increased to $1.99 billion, up 26% or 23% excluding FX. This is the highest growth rate for Worldwide Media in three years.

EGM revenue increased to $947 million, up 48% or 44% excluding FX. EGM continued to increase its share of worldwide sales mix representing 31% of sales, up from 28% for the same period last year.

- Trailing 12 month free cash flow increased 4% to $521 million, while the combination of common stock and stock-based awards outstanding decreased 2% to $430 million.

Worldwide unit growth was 23% and active customer accounts exceeded $66 million, up 15% year-over-year.

- Worldwide gross profit was $719 million, up 31%.
- Gross margin decreased 17 basis points to 23.8%.
- Worldwide active seller accounts were over 1.1 million, and third party units representing Marketplace and Merchants@ sold on Amazon sites were 30% of total units versus 29% in the prior year.

Fulfillment, marketing, tech and content, and G&A combined were $540 million or 17.9% of sales, an improvement of 86 basis points year-over-year.

- Fulfillment was $253 million or 8.4% of net sales, up 6 basis points year-over-year.
- The company continued to increase capacity through efficiencies as well as adding leased warehouse space to network.
- The company announced plans for additional warehouses, one in the UK and one in France, supporting international operations.
- Technology and content was $167 million or 5.5% of net sales, an improvement of 55 basis points year-over-year, as the company have continued to grow into new level of spending.

- Consistent with prior periods, the company does not allocate the segments, stock-based compensation or other operating expense line items.

In the North America segment, segment revenue grew 30% to $1.62 billion.

- Media revenue grew 21% to $990 million.
- EGM revenue grew 51% to $564 million, representing 35% of North America revenues, up from 30%.
- Gross profit grew 29% to $439 million.
- Gross margin decreased 27 basis points to 27.1% from product mix and lowering prices.
- Operating income increased 39% to $86 million, a 5.3% operating margin, up 34 basis points year-over-year.

- The company saw quarter of strong sales in electronics and revenue from soft goods, which includes jewelry, apparel, shoes and sporting goods, more than doubled year-over-year.

The company was pleased with the early customer response to grocery subscription service, which offers automated replenishment plus a 15% additional discount.

Some of the most popular items for subscription include diapers, nutrition bars and coffee.

In the International segment revenue grew 35% to $1.39 billion.