New Yahoo CEO says company needs to "do better"

Tue Jan 24, 2012 6:23pm EST
 
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By Alexei Oreskovic

(Reuters) - Yahoo Chief Executive Scott Thompson tried to manage expectations on his first earnings call as the new CEO, broadly addressing numerous issues the Internet company is grappling with -- from a potential sale to reviving its core display advertising business -- but declined to lay out a detailed strategy.

Analysts prodded Thompson for clues about his plans for Yahoo Inc, which fired former CEO Carol Bartz in September and last week saw co-founder Jerry Yang resign unexpectedly, but all they received were boilerplate comments about how the company needs to "do better" and "get innovative products that matter into the market."

Thompson, along with Chief Financial Officer Tim Morse, gave few hints about the progress of Yahoo's strategic review as well, dashing hopes that his arrival might hasten a transaction.

Morse said talks with Yahoo's Asian partners -- Alibaba and Softbank -- about a restructuring were continuing but beyond that provided little concrete detail on where things stand.

Thompson, who was only hired as CEO two weeks ago, added that the company's board has narrowed down its options to the ones that appear "most promising."

Meanwhile, Yahoo's net revenue and profit fell slightly in the fourth quarter, as it experienced year-over-year declines in both its search and display ad business.

Shares of the company slipped 4 cents to $15.65 in after-hours trade.

Morse said that macroeconomic factors, particularly in Europe, resulted in weaker than expected display advertising revenue in the fourth quarter and continued to be a concern.   Continued...

 
<p>The Yahoo! Connected TV booth is shown during the 2011 International Consumer Electronics Show (CES) in Las Vegas, Nevada January 7, 2011. REUTERS/Steve Marcus</p>