Yahoo! Posts $303M Loss
January 28, 2009 at 5:30 AM (PT)
YAHOO!'s Q4 results illustrate the Herculean task facing new CEO CAROL BARTZ as she attempts to clean up the operational mess left by JERRY YANG's 18-month reign as CEO, reports THE NEW YORK POST. The beleaguered Internet giant swung to a Q4 loss of $303.4 million, capping off YANG's tumultuous management of the company and marking the first time since 2002 that YAHOO! has reported a quarterly loss. Revenue fell 2% to $1.37 billion, the company's first decline since 2001.
Those results perhaps explain why the typically sharp-tongued BARTZ played it straight during her first earnings call as YAHOO! CEO. Her harshest criticism of previous management was that it was "hard to get speedy answers," and that she wanted to "improve the pace of decision-making." Beyond that, however, BARTZ shed little light on her plans for the company and how to remedy its trouble spots, except to say that she has a "maniacal interest in delighting our customers."
As bad as the red ink was, YAHOO! also had to contend with a 2% decline in worldwide display advertising, the company's lifeblood. It was the company's first-ever drop, and CFO BLAKE JORGENSEN warned it might not be the last.
"We view the likely first-ever year-over-year decline in YAHOO!'s display advertising as a significant negative," said CITIGROUP analyst MARK MAHANEY in a note prior to the earnings release.
YAHOO! shares closed trading yesterday up 17 cents to $11.34.
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