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Weak Ad Market Pushes Yahoo! Profits Down

10/18/2006 09:45:00 AM Eastern

Sunnyvale, Calif. – Citing stock option costs and sagging corporate advertising, Yahoo! announced a net income drop of 37.4 percent in the third quarter versus the same period a year ago.

Net income for the third quarter of 2006 was $159 million versus $254 million in the year ago period. Company revenues rose 19 percent versus the same quarter last year, from $1.33 billion to $1.58 billion.

The company also registered a 13 percent jump in gross profits to $899 million for the third quarter versus $796 million for the same period in 2005.