updated 04:55 pm EDT, Tue April 22, 2008
Yahoo Beats Expectations
Yahoo on Tuesday afternoon set the groundwork for its resistance to Microsoft's proposed takeover by posting its fiscal results for the first quarter of 2008. The search engine firm says it that its revenues for the period ended March were just over $1.8 billion, a nine percent increase over the same period a year ago; the company also claimed just over $1 billion in profit, an 11 percent jump versus the same period in 2007.
The results are described as proof that Yahoo should return to its former success and that the company's staff can work in "unusually challenging circumstances," according to Yahoo chief Jerry Yang, who alludes to doubts generated by Microsoft's attempted bid.
Yahoo's results may prove crucial to the company, which has been determined to prove to shareholders that it doesn't require Microsoft help to regain a strong position in web ads and searches. The former's earnings of 11 cents per share exceeds analyst expectations of 9 cents and is widely anticipated to foster additional support for its refusal to accept Microsoft's existing bid of $31 per share.
The company cautioned that its operating income was down 28 percent to $121 million but faults Microsoft for some of the drop, noting that $14 million was spent on advisors to determine Yahoo's reaction to the unsolicited bid.
Yahoo hasn't commented on the success of its Google AdSense deal in its quarterly report but is expected in an ongoing conference call to use early successes with the trial to justify opposition to Microsoft's takeover attempt, which the latter has claimed won't be affected by strong results at Yahoo. Microsoft has said it will bypass Yahoo's board and petition shareholders directly if its offer isn't accepted by this Saturday.