Ya-Hoooo! Web Company Tops Expectations

A Yahoo! headquarters sign is shown in Sunnyvale, Calif., in this file photo from Jan. 22, 2007. Yahoo Inc. is greatly expanding its relationship with the newspaper industry, announcing the addition Monday, April 16, 2007 of four new publishing companies to a consortium that works with the Internet company to sell advertising online.
AP
Yahoo Inc.'s second-quarter profit rose 8 percent, boosted by the cost-cutting the Internet company has imposed as it tries to bounce back from a long slump.

The results announced Tuesday marked Yahoo's first quarterly earnings increase since the first three months of 2008.

The Sunnyvale-based company said it made $141.4 million, or 10 cents per share, in the three months ending in June. That was up from income of $131.2 million, or 9 cents per share, last year.

Analysts surveyed by Thomson Reuters had predicted Yahoo would earn 8 cents per share.

"Even in this challenging economic environment, Yahoo had a solid quarter, reflecting the strength of our offerings for our users and advertisers," Yahoo Chief Financial Officer Tim Morse said in a statement.

Revenue for the period slid 13 percent to $1.57 billion.

That's the biggest decline so far in a slump that has seen Yahoo fall further behind Internet search leader Google Inc. in the online ad market.

The results came as Yahoo unveiled a new home page (below)in a long-promised makeover meant to make it easier to see what's happening at the Internet's other hot spots.

The idea is to help Yahoo recapture some of the buzz it has lost to increasingly popular online hangouts like Facebook, MySpace and Twitter.

(AP Photo/Yahoo Inc.)
"We established a clear, simple vision to be the center of people's lives online, and we're backing that vision with important initiatives to create 'wow' experiences for our users," CEO Carol Bartz said. "We're confident that this vision will put us on the right path to growth and profitability long term."

Shares in Yahoo fell 65 cents, or 3.9 percent, to $16.10 in extended trading Tuesday after the release of the quarterly results.

Earlier, it closed down 26 cents, or 1.5 percent, at $16.75.