Yahoo Q1 profit up from last year

The company expects revenue for the full fiscal year to be between $7.2B and $8B

Yahoo Inc. today reported (download PDF) net income of $542 million, or 37 cents per diluted share, for the first quarter of 2008, compared with $142 million, or 10 cents per diluted share, for the same period last year.

Analysts polled by First Call/Thomson Financial had expected earnings of 9 cents per share for the first quarter.

Revenues for the quarter were $1.818 billion, up 9% from $1.672 billion in the first quarter of 2007.

Revenues excluding traffic acquisition costs were $1.352 billion, a 14% increase from $1.183 billion in the year-ago quarter.

For the second quarter, the company said it expects revenues of $1.73 billion to $1.93 billion. For the full year, it estimates that its revenues will be $7.2 billion to $8 billion.

In a conference call after the earnings were announced, Yahoo CEO Jerry Yang said the company's board of directors had determined that Microsoft Corp.'s unsolicited $43.2 billion bid undervalued the company. Yang said that decision was based on the strength of Yahoo's business and the strength of its strategic plan.

He said Yahoo's board and management are committed to maximizing value for the company's shareholders and would not accept any proposal that undervalues Yahoo.

Earlier today, Microsoft Corp. CEO Steve Ballmer said his company would not increase its bid even if Yahoo's quarterly results impressed investors. Ballmer, who was peaking at the launch of Microsoft's Web portal for North Africa, MSN Maghreb, has given Yahoo's board until April 26 to accept Microsoft's offer or face a hostile takeover attempt.

Copyright © 2008 IDG Communications, Inc.

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