Yahoo profits up 244%, revenue down 12%

Yahoo joined the ranks of other major tech companies that turned a profit in the recent quarter after reporting better-than-expected earnings. The search company posted a net income of $186 million or $.13 per share, which is up 244% from the year-ago quarter's $54 million, and excluding some expenses net income was $213 million or $.15 a share.

Yahoo's surge in profit comes after some major budget trimming, and despite the company's handsome bottom line, its revenue is still falling. Yahoo recorded revenue of $1.6 billion in the third quarter, down 12% year-over-year, and excluding traffic acquisition costs revenue was $1.1 billion.

Looking ahead, it is expecting gross sales to hit some $1.6 to $1.7 billion in the current quarter, and it is preparing a $100 million-plus marketing campaign. The company also agreed to a lengthy search and advertising deal Microsoft over the summer, which will put Bing on Yahoo's websites, and that is expected to rollout sometime next year.