Record Profits At Amazon.comRecord Profits At Amazon.com

Amazon.com Inc. gave the E-commerce sector another shot in the arm on Thursday, reporting record profits and strong year-over-year revenue growth for the first quarter.

Amazon demonstrated its diversification during the quarter, reporting that for the first time, half of its sales came from products ordered by customers outside the United States--international sales grow 80% from a year earlier while North American sales rose at a more modest 20%.

Media products such as books and CDs remain Amazon's primary draw, accounting for nearly $1.2 billion in revenue, compared with $355.6 million for other product categories. But the single biggest growth category was international sales of electronics and other general merchandise, which was up 368% from last year. North American sales in that category were up 33%, more than double the 16% growth of media products. The company is looking to capitalize on growing interest in non-media categories, having launched a home and garden store in Germany during the first quarter, as well as two new stores in the United.Kingdom--do-it-yourself and tools, as well as garden and outdoors. Amazon also is in the process of launching a jewelry store in the United States.

For the quarter ended March 31, Amazon posted net income of $111 million on revenue of $1.53 billion, compared with a loss of $10 million on revenue of $1.08 billion a year earlier. Despite the continuing growth, Amazon execs remain cautious in establishing future guidance, with revenue expected to fall between $1.34 billion and $1.44 billion for the second quarter.

CFO Tom Szkutak attributed the strong sales to lowered prices, expanded selection, and Amazon's continued offer of free shipping on orders of more than $25 in the United States. The company also is offering free shipping on some orders in the United Kingdom, Germany, France, Japan, and Canada in an effort to build its worldwide customer base.