Amazon balances its books

In a quarterly statement, the company said it will continue to consider new credit opportunities and the possibility of restructuring long-term debt for 'strategic reasons'.

The company did not specify how it planned to restructure the debt, which comes from two convertible bond issues and one senior discount note issue, both to be paid off by between 2008 and 2010.

Analysts say that the company could restructure its long-term debt in a number of ways, including cutting the conversion price on the convertible bonds in exchange for new equity, or actually buying some of the debt back.

While Amazon has not filed to restructure debt before, the decision could signal future growth plans rather than a cash-strapped company.

Speaking to silicon.com recently, Amazon.co.uk MD Steve Frazier confirmed that Amazon started the year with one billion dollars in cash, and "would never have to seek cash again except for strategic reasons," which could include further expansion, new alliances and propping up the international subsidiaries.

Meta Group analyst Jeff Mann agreed that Amazon has been strategic in its spending habits until now, but that profitability is now crucial, even at the expense of future expansion.