Yahoo Inc. reported late Tuesday that third-quarter profit fell 37%, as higher advertising sales at its collection of Internet sites weren't enough to offset stock options costs and higher expenses. Yahoo also said its board of directors has authorized the company to repurchase up to $3 billion worth of its common stock over the next five years. It's the second time in 19 months that the company announced a $3 billion share buyback plan. The Sunnyvale, Calif.-based company said net income for the three months ended in September fell to $158.5 million, or 11 cents a share, from $253.8 million, or 17 cents, a year ago, when Yahoo, like most technology companies, didn't include option costs on its income statement.
Net sales are up, but profit is down. I wonder if they expect that the new system will mean that computers now look at the ads rather than someone in a cubicle, thus increasing their margin by ridding themselves of those pesky labor costs?
[edited by: engine at 11:26 am (utc) on Oct. 18, 2006]