Net income per diluted share rose from $US0.08 in 1Q09 to $US0.22, but that includes $US0.05 related to the sale of Zimbra and $US0.02 from "transition cost reimbursements from Microsoft."
(Implementation of the search agreement between Yahoo! and Microsoft commenced on February 23, 2010.)
"We made important strides on several measures in the first quarter," said chief financial officer Tim Morse.
"Our operating margin improved and we began redeploying capital into share repurchases and value-creating acquisitions. Our operating income growth and expanded margins this quarter demonstrate the success of our efficiency efforts as well as the first tangible benefits of our search agreement with Microsoft," he added.
Yahoo! expects its 2Q10 revenue to be in the range of $US1,600 to $US1,680 million.