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Earnings: Yahoo Call: Results 'Remarkable'; Open To Microsoft'; Premature To Speculate On Google

This story was written by Joseph Weisenthal.

Work in progress After an unusually long reading of the perfunctory warnings, CEO Jerry Yang is trumpeting the just-released results as: "All the more remarkable given the recent economic environment and the uncertainties from Microsoft's (NSDQ: MSFT) proposal"

-- Microsoft: "Microsoft's proposal substantially undervalues Yahoo.. the board's decision to reject was based on the strength of our business." But, they're still open to the right deal: "Since then, our board and management team has been open to any and all alternatives, including a sale to Microsoft."

-- Advertising: Display revs were up over 25 percent in the quarter.

-- Search: Closing gap in search relevance with Google. Panama will help that gap narrow further.

-- Econ outlook: "While the overall economic outlook remains unclear, and we're not immune we have a very diverse advertising base, and believe ad budgets will continue to move online." And, as others believe, targeted advertising will do well in a recession.

Sue Decker picks up the baton, talking tactics. This is the equivalent of when Larry and Sergey talk on the Google call, as she's mainly touting specific product improvements (not the kind of stuff analysts or investors are dying to hear about). Examples: OneSearch, openness, video on Flickr, Panama gains. RPS was up about 10 percent.

Google Outsourcing: Decker says company sees tremendous value in being a significant player in search and display. "It's premature to speculate on what options we may ultimately pursue." (Note: this is not what analysts want to hearthey want numbers)

By Joseph Weisenthal

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