Yahoo has reported its fifth consecutive money-losing quarter but managed to narrow its losses despite a severe downturn in the advertising market, which makes up the bulk of the company’s sales. Net revenues for the fourth quarter ended Dec. 31, 2001 totaled $188.9 million, compared to net revenues of $310.9 million for the fourth quarter ended Dec. 31, 2000. Pro forma net income for the fourth quarter of 2001 was $16.7 million or $0.03 per share diluted (1). This compares to pro forma net income of $80.2 million or $0.13 per share diluted for the fourth quarter of 2000
While 2001 was a year of challenges and transition, Yahoo! adapted and executed to end the year on a high note, with fourth quarter revenues and income exceeding the business outlook we previously provided. As we reorganized the business and reduced costs throughout the year, Yahoo! managed through the difficult environment. We continue to focus on long-term growth as we execute our strategy of building a diversified global business, said Terry Semel, chairman and chief executive officer, Yahoo!.
The company also announced that Jeff Mallett will step down as president and chief operating officer in April. He is leaving Yahoo! to take advantage of greater flexibility for family and business interests.
Mallett will continue working with the management and operations teams to execute the company strategy, as well as facilitate a smooth transition. He will also continue as a member of the Board of Directors until the company’s annual stockholder meeting this spring.
Mr. Mallett joined Yahoo! in 1995 as the company’s 12th employee. He was instrumental in engineering the company’s original business plan, including establishing the Yahoo! network as the number one global web network. He has also been integral to the company’s diversification into enterprise solutions, business and consumer for-pay services and electronic commerce transactions.
The company expects to outline a succession plan prior to Mallett’s departure in April. Yahoo! made no other organizational or reporting structure changes in conjunction with this announcement.
