Originally created 07/09/98

Yahoo beats Wall Street expectations



NEW YORK -- Yahoo Inc., the Internet darling whose stock recently has rocketed, on Wednesday reported unexpectedly strong quarterly results as millions more people visited its popular Web site.

Yahoo also disclosed that Softbank Holdings Inc. of Japan paid $250 million to boost its stake in the company to 31 percent.

Yahoo, based in Santa Clara, Calif., said it lost $36 million, or 81 cents per diluted share, in the three months ended June 30. That was wider than the loss of $21.6 million, or 50 cents per diluted share, in the comparable year-ago period.

But excluding a one-time charge of $44 million for an acquisition during the period, Yahoo earned $8.1 million, or 15 cents per share -- far outperforming analysts' estimates of 9 cents per share, according to a survey by First Call Inc.

Revenue grew to $41.2 million from $14.1 million.

Yahoo's stock nearly doubled this past month amid a surge of investor enthusiasm for companies with popular Web sites for directing Internet users to other Web locations. Yahoo sells advertising on its site, which includes a range of features from chat, news and search services.

Yahoo released its results after the close of financial markets. After soaring in recent sessions, Yahoo's stock fell 2.5 percent on Wednesday, down $4.81 1/4 to $186.18 3/4 on the Nasdaq Stock Market.

The company said it counted 115 million page views of its Web site during the quarter, up from 95 million in the previous quarter, as well as an increase to 18 million registered members from 12 million.

For the six months ended June 30, Yahoo lost $31.7 million, or 72 cents per diluted share. That compared to a loss of $22.3 million, or 52 cents per diluted share, a year ago.

Revenue rose to $71.4 million from $24.2 million.