Due to lag and delay in the acquisition of certain critical technology for improvisation of their search based advertising system, Yahoo has incurred some loss of earnings in the first three months of financial year 2011-2012.
The fall in profits was 28 per cent as Yahoo failed to make last year’s first three months profit of $310 million. The profit for the same period this year was just $223 million.
The quarterly earnings was however higher than expectations of analysts and thus Yahoo’s share prices hiked by 3.5 per cent.
Yahoo’s chief executive Carol Bartz announced that the company would strive to increase revenue and earnings and mentioned that they were not expecting earlier highs, but still were largely optimistic of achieving the companies present goals. She expressed her faith that the company was going in the right direction and would mark a major turnaround this year.
The company is now avidly trying to make a break into the rapidly growing mobile internet segment and has planned intrusion strategy inline. Experts argue that this will break the stalemate and give Yahoo a clear foot in matters. Yahoo has also plans to increase video advertising on its sites as it seemingly gained popularity and acceptance.