Internet pioneer Yahoo! Inc. showed a 28% rise in its profits for the first quarter of the year, a definite bright light in the company’s faltering financial image as it battles it out for business leadership with today’s new Internet giants.
BBC News this morning said Yahoo! reported a net income of $286 million for its operations during the first three months of this year, from revenue of about $1.08 billion for the quarter.
As a result of the positive picture for the struggling California-based company, its shares rose 2% in after hours trading in New York, with its shares climbing slightly to $15.32.
Yahoo! has been struggling to maintain its original strong hold on Internet business, unsuccessfully trying to run down Google, today’s Internet search leader.
It has also been straggling behind in the social media business behind new lead marketers, Facebook and Twitter.
Despite yesterday’s positive figures, industry observers still remain skeptical about the company’s ability to turn things around, despite its new leader, CEO Scott Thompson’s attempts to revive the Internet giant which still boasts of 700 million users worldwide.
Investors have been awaiting Thompson’s new strategies to capture more of the online advertising market from Google and Facebook .
The expected new direction comes even as the firm announced earlier this month that it was laying off 2,000 workers, its sixth round of job cuts in the last four years.
The Yahoo! leadership had announced that the latest planned reduction in its work force could save the company $375 million a year in operating expenses.
The projected lay-offs however are expected to cost the company somewhere between $125 million and $145 million in severance benefits.