At the close of the market Tuesday Sunnyvale, California-based Web pioneer Yahoo released its first quarterly  earnings results under recently hired chief executive Carol Bartz, with fourth quarter financial results showing revenues down 1 percent to $1.80 billion from the same quarter one year earlier. The results showed that during the last full year under former chief executive and company co-founder Jerry Yang, who Bartz replaced earlier this month, Yahoo had revenues that increased by 3 percent to $7.2 billion, up from a $6.9 billion figure in 2007. Results Largely Fell Within Yahoo Estimates In October 2008 Yahoo reported third quarter earnings that fell by 64 percent, or 15 cents a share, with revenue that increased by a modest 1 percent to $1.4 billion, as the company reported income of $123 million excluding stock options, from the same quarter one year earlier. At that time Yahoo lowered its revenue estimates for 2008 from the $7.35 billion to $7.85 billion range it predicted just three months ago, to the $7.18 billion to $7.38 billion range, with share prices hovering around $12.40. The financial report released Tuesday fell within Yahoo's earlier estimates. Yahoo had forecast revenue during the final quarter of 2008 between $1.77 billion and $1.97 billion, which was also met by the results released Tuesday. A survey of analysts conducted by Norwalk, Connecticut-based FactSet Research and an estimate from Thompson Reuters had forecast fourth quarter revenue of $1.37 billion and earnings of 13 cents a share. Analysts had forecast 2008 earnings of 42 cents a share on revenues totaling $5.39 billion, excluding one-time items. Yahoo had a net loss for the fourth quarter of $303 million, or 22 cents a share. In the same period in 2007 Yahoo had net income of $206 million, or 15 cents a share. New Chief Executive Bartz Encouraged Bartz said Tuesday that Yahoo had made strong progress in a difficult economic period. "Despite the challenging economic environment, Yahoo delivered adjusted operating cash flow above the midpoint of guidance for the fourth quarter," Bartz noted in Yahoo's financial release (.PDF file). "The company also made important investments while aggressively managing costs, leaving us better positioned to weather the economic downturn and emerge stronger when advertiser spending improves. We have work to do, but I am excited by Yahoo’s opportunities, and encouraged by the tremendous innovation and momentum I’ve seen since joining the company as CEO," Bartz added. "I'm excited about the challenge and encouraged about what I've seen so far," Bartz told SearchEngineWorld in a conference call with reporters after Yahoo released its financial results. Fourth quarter revenues among Yahoo's marketing services were $1.594 billion, up slightly from $1.590 billion in the same period one year prior, however excluding traffic acquisition costs Yahoo saw a decrease from $1.40 billion to $1.37 billion. International segment revenue at Yahoo fell 10 percent to $468 million during the fourth quarter, down from $519 million for the quarter in 2007. In the United States segment revenues at Yahoo rose 2 percent to $1.33 billion, from $1.31 billion in the same quarter during 2007. International Revenues Fell While Those In U.S. Rose Last week Microsoft reported weak financial results and the layoffs of 5,000 employees, about 5 percent of its workforce, while Google fared better with results beating forecasts despite profit that fell by 68 percent. Yahoo shareholders have continued to voice concerns over what they see as a missed opportunity stemming from the Web pioneer's refusal to accept an acquisition offer worth $47.5 billion, concerns that have intensified as  Yahoo share prices have dropped to around $11 a share, or about a third of the $33 a share the Microsoft offer represented. For 2008 Yahoo reported net income of $424 million, or 29 cents a share, down from 2007 figures that showed $660 million, or 47 cents a share. 2008 international revenues were $2.01 billion, down 10 percent from 2007's $2.24 billion, while Yahoo showed stronger U.S. segment revenues which totaled $5.19 billion, a 10 percent increase from $4.72 billion in 2007. Some Wall Street analysts expect Bartz to begin her first year leading the Sunnyvale company by implementing lowered earnings goals for the company in order to more easily top the relaxed expectations, and she has all but ruled out major moves until she familiarizes herself with operations at Yahoo. Yahoo Earnings Report Reveals $303 Million Loss And Weak Outlook Earnings results were encouraging to Yahoo chief financial officer Blake Jorgensen. "We are encouraged by our results for 2008," Jorgensen noted in Tuesday's release. "Yahoo’s aggressive cost management and strong balance sheet helped us navigate this unprecedented economic environment. The cost reduction initiatives and investments we made in 2008 have positioned us well for challenging conditions," Jorgensen added. Yahoo holds a "strong market share in many emerging and Asian countries" in international search revenue, while U.S. search queries were up by 10 percent during the fourth quarter, Jorgensen said during Tuesday's conference call. Bartz said that after eight days as the leader of Yahoo she felt "right at home" with her new role. "This is not a company that needs to be pulled apart and left for the chickens," Bartz added Tuesday. At the close of markets Tuesday Yahoo share prices were up 1.52 percent to $11.34, while active after market trading saw share prices up 4.85 percent to $11.86 as of 6:00 p.m. EST. Related Links:
| 
