Yahoo's advertising and search revenues fall, but cost cutting helps

Just as we had expected, Yahoo (YHOO) announced a drop in net revenue today, after the market close.The company said that during its second quarter, net revenue fell by 13 percent from the same period one year ago to $1.57 billion. The fall was fueled by a sagging market for advertising sales. Had it not been for currency fluctuations, revenues would have declined eight percent. Net income came in at $141.4 million -- 10 cents per share -- up eight percent from one year ago and better than expected.

The company's relatively new chief executive officer, Carol Bartz, put a positive spin on the data claiming that Yahoo is at the "center of people's lives online" while promising to create "wow experiences" for its users. One of those "wow" experiences is supposed to be the the company's new home page, which includes easier access to online content, including services such as Twitter, in order to keep increasing user engagement while at the site.