January 27, 2009, 9:37 PM — SUNNYVALE, Calif. (AP) -- Yahoo Inc. expects its first-quarter revenue to plunge by as much as 16 percent, signaling the downtrodden Internet company won't be snapping out of its three-year slump any time soon.
In a Tuesday forecast accompanying its fourth-quarter results, Yahoo projected its revenue will range from $1.53 billion to $1.72 billion in the three months ending March. That's down from $1.81 billion from the same time last year.
The cautious outlook set a low financial hurdle for Yahoo's new chief executive, Carol Bartz, who was hired two weeks ago to replace company co-founder Jerry Yang.
Yahoo didn't predict what it's first-quarter profit will be. Analysts surveyed by Thomson Reuters had forecast earnings of 10 cents per share before Yahoo served up its revenue guidance.
In a break from tradition, Yahoo didn't attempt to look beyond March because the economic outlook is too uncertain.
Yahoo withstood the recession better than analysts anticipated at the end of last year, even though the Sunnyvale-based company suffered a fourth-quarter losses. The setback was driven by about $600 million in charges to account for 1,500 layoffs last month, office closures and the eroding value of Yahoo's European operations.
If not for those charges, Yahoo's fourth-quarter earnings would have been higher than the prior year.
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