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Yahoo earnings down from a year ago but in line with expectations

Elinor Mills Former Staff Writer
Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 after working as a foreign correspondent for Reuters in Portugal and writing for The Industry Standard, the IDG News Service and the Associated Press.
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Elinor Mills

Yahoo on Tuesday posted first-quarter net income that was down from a year ago but met analyst expectations.

Net income, including stock compensation expenses, was $160 million, or 11 cents a share, under a new fair value method of accounting. That compared with $205 million, or 14 cents a share, a year ago, reported under the old intrinsic value method of accounting, the company said.

The company adopted new accounting rules this year that require all companies to record stock compensation expense at fair value in the income statement. Previously, Yahoo only recorded the intrinsic value of awards, if any, in the income statement and disclosed stock compensation expense on a fair value basis in the footnotes to the financial statements. Yahoo has not restated previously announced results.

Revenue, excluding traffic acquisition costs or fees shared with partners, was $1.09 billion, up 33 percent from $821 million a year earlier.

Analysts polled by Thomson Financial had expected Yahoo to post first-quarter earnings per share of 11 cents, including stock-based compensation expenses, on revenue of $1.08 billion.

During the company's last financial-results conference call, Yahoo forecast that first-quarter revenue would be between $1.04 billion and $1.1 billion.