Shares of Yahoo Inc. (NASDAQ: YHOO) have risen sharply in trading today after the Sunnyvale, California-based Internet company reported results for the third quarter ended Sep 30, 2012.
YHOOâ€™s consolidated revenue for the third quarter fell 1% to $1,201.73 from $1,216.67 million reported for the same period in the previous year. The companyâ€™s GAAP income from operations fell 14% to $152.19 million from that of $177.25 million reported for the same period in the previous year. On a non-GAAP basis, the companyâ€™s operating income for the quarter was $177 million, up from $175 million reported for the same period in the previous year.
Though YHOOâ€™s revenues from Display service and Search service rose by 1% each, the increase was offset by 10% decrease in the revenues from Others. Total Revenues excluding TAC (Traffic Acquisition Costs) had increased by 2% to $1,088.9 million from $1,071.67 million.
Net Income increased drastically by 978%. This was mainly due to a gain of $4,603.32 million from the sale of Alibaba shares. Excluding the gain from Alibaba, related restructuring expenses and tax provision, YHOO reported non-GAAP net income of $420.68 million, or $0.35 per share.
Marissa Mayer, CEO of Yahoo, said that the company had a solid quarter, and is encouraged by the stabilization in search and display revenue. Mayer also said that the company is taking important steps to position itself for long-term success. Mayer added that she is confident that YHOOâ€™s focus on quality and improving the user experience will drive increased value for its advertisers, partners and shareholders.
At the end of Sep 30, 2012, YHOO had total assets of $20,414.13 million, including $7,560.4 million worth of cash and its equivalents. Total liabilities were $4,808.61 million, among which 73% were current. Total stockholdersâ€™ equity was $15,605.52 million.
YHOO shares rose to a 52-week high of $16.75 today. At last check, the stock was trading 5.77% higher at $16.68, with volume up from its daily average of 20.47 million to 47.73 million.