SAN FRANCISCO: Yahoo! on Tuesday reported that its net profit slumped nearly 80 percent in the first three months of the year and that it will trim its workforce by five percent to cut costs.
Shares of the Internet company rose 1 percent in after-hours trading.
In the first full three-month period under the leadership of CEO Carol Bartz, Yahoo generated revenue of $1.58 billion, compared with $1.82 billion at this time last year. Excluding traffic acquisition costs, Yahoo's revenue was $1.16 billion compared with the average analyst expectation of $1.2 billion according to Reuters Estimates.
"Yahoo! is not immune to the ongoing economic downturn, but careful cost management in the first quarter allowed our operating cash flow to come in near the high end of our outlook range," said Bartz.
"With our leading audience properties, substantial reach and innovative advertising solutions, we are confident Yahoo! will be well positioned when online brand advertising resumes its growth," she added.
Shares of the Internet company rose 1 percent in after-hours trading.
In the first full three-month period under the leadership of CEO Carol Bartz, Yahoo generated revenue of $1.58 billion, compared with $1.82 billion at this time last year. Excluding traffic acquisition costs, Yahoo's revenue was $1.16 billion compared with the average analyst expectation of $1.2 billion according to Reuters Estimates.
"Yahoo! is not immune to the ongoing economic downturn, but careful cost management in the first quarter allowed our operating cash flow to come in near the high end of our outlook range," said Bartz.
"With our leading audience properties, substantial reach and innovative advertising solutions, we are confident Yahoo! will be well positioned when online brand advertising resumes its growth," she added.
The Sunnyvale, California-based company reported a net profit in the first quarter of $118 million, or 8 cents a share -- down from $537 million, or 37 cents a share, a year earlier. Wall Stret on average, had forecast earnings at 8 cents a share, according to Reuters Estimates.
Yahoo projected that sales in the current quarter will range between $1.425 billion and $1.625 billion.
http://economictimes.indiatimes.com/Infotech/Internet-/Yahoo-to-cut-5-jobs-Q1-profit-in-line/articleshow/4432388.cms
Yahoo projected that sales in the current quarter will range between $1.425 billion and $1.625 billion.
http://economictimes.indiatimes.com/Infotech/Internet-/Yahoo-to-cut-5-jobs-Q1-profit-in-line/articleshow/4432388.cms
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