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Last Updated: Tuesday, 17 April 2007, 21:08 GMT 22:08 UK
Yahoo's latest profits disappoint
Yahoo home page
Yahoo is still in Google's shadow
Yahoo's latest profits have fallen 11% as it continues to struggle to catch up with its bigger rival Google.

For the three months to 31 March, Yahoo's net profit fell to $142m (71m) compared with $160m a year earlier.

First quarter revenues at the internet search engine rose 9% to $1.18bn, again from the same time in 2006.

Yahoo recently installed a new software system it hopes will secure higher advertising sales, but it says the gain won't come until its second quarter.

Its latest results were slightly below market expectations.

But its shares still rose by 48 cents to $32.09.

'No positive impact'

The firm's new software system is called Panama.

"It looks like the impact from Panama is not showing up," said computer sector analyst Scott Devitt of Stifel Nicolaus & Co.

"We would be buying Google on these results."

Recent industry figures have shown that Yahoo has a 28% share of the US search engine market, compared with Google's 48%.


SEE ALSO
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Yahoo shake-up to take on rivals
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Yahoo 'unhappy' with performance
17 Oct 06 |  Business
Advert worries hit Yahoo shares
19 Sep 06 |  Business
Yahoo opens up its e-mail program
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