Yahoo Outlook Improves As Net Income Nearly Triples

Yahoo Inc., reported a net income of $312.27 million for the first quarter of the year 2010 as opposed to $118.69 million for the same period the last fiscal year along with the revenue of $1.59 billion for the first quarter of 2010.

This result marks the first rise in company's revenue in almost 18 months, and is being touted as the best quarterly result since the company hired the 61 year old Carol Bartz as its new CEO. She helped turned the focus back on core web properties and the company's display advertising business.

The internet titan seems to have started reaping benefits from its tie-up with Microsoft related to their 10 year search pact which is aimed at overthrowing search engine giant Google Inc.

The money began to flow for Yahoo when competition regulators gave a go ahead to the search deal, which involves Yahoo search being powered by Microsoft's Bing search engine.

Bartz has put all the attention into cost-cutting after coming through with the Microsoft deal and is looking to take the position of the brand to its pre-recession glory.

Yahoo, in accordance with the deal, expects to receive nearly $75 million from Microsoft each quarter, with a net payment of $78 million in the first quarter of the year 2010.

Our Comments

Yahoo is stil in a vulnerable position despite the good results. It is dependent on Microsoft to generate a significant chunk of its profits and could face a brand new threat over the next few months as some expects Apple to launch a search engine and an advertising solution.

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