Yahoo! shows! off! for! suitors! by! diving! into! red! ink!
Revenues down, losses mounting, how can Verizon say no to that?
Yahoo! seems resigned to its fate, and says it is "pleased" with taking a $98m loss on the quarter.
The Purple Palace on Tuesday recorded yet another drop in revenues and acknowledged it was making "significant progress" towards the sale of its core business.
For the Q1 2016 period, ended March 31:
- Revenue was $1.09bn, down 11 per cent from the $1.23bn reported in the year-ago quarter.
- Net income was -$98m this quarter, compared to a gain of $21m in Q1 2015.
- Non-GAAP earnings per diluted share were $.08, slightly topping analyst estimates of $.07.
- Loss from operations was $167m compared to $87m a year ago.
"I'm pleased that we delivered Q1 results in line with our expectations. Our 2016 plan is off to a solid start as we continue to focus on driving efficiency, lowering costs, and improving long-term growth," CEO Marissa Mayer said.
"In tandem, we made substantial progress towards potential strategic alternatives for Yahoo. Our board, our management team, and I are completely aligned on this top priority for shareholders."
This as Yahoo! continues to work on the sale of its core business. It is widely believed that Verizon is the favorite to win the bidding, with a plan that could include a union with AOL. Other likely bidders include The Daily Mail.
Mayer said in announcing the quarterly results that Yahoo was working "expeditiously and judiciously" towards the sale and denied reports of strife. Even the shareholders who are pushing for the sale, however, seem to have their doubts about that.
Jeff Smith, CEO of activist fund Starboard Value, said in an interview with CNBC that if a sale isn't completed by the annual shareholders meeting, he will make good on a threat to replace the entire board with a team that will push through a sale.
"If we get to the end, and they haven't been successful as it relates to getting the company sold – the core business sold – well we're going to need to pick up the pieces," Smith was quoted as saying. ®