Yahoo Revenues Up On Strong Ad Sales

Yahoo Inc. on Tuesday said net income for the first quarter fell due to stock compensation expenses, but advertising sales drove revenues up 34 percent.

The Sunnyvale, Calif., Web portal said net income for the quarter ended March 31 fell to $160 million, or 11 cents a share, from $205 million, or 14 cents a share, during the same period a year ago. Profits in the latest quarter were hurt by $71 million in stock compensation expenses.

Revenues rose to $1.57 billion from $1.17 billion a year ago.

"Yahoo had another strong performance this quarter," Terry Semel, chairman and chief executive, said in a statement. "Our overall advertising business saw solid growth and our user numbers continued to climb."

The average of Wall Street analysts polled by Thomson Financial was 11 cents a share for the quarter, and revenues of $1.08 billion.