Yahoo has reported second-quarter profit rose eight per cent as cost-trimming enabled the struggling Internet firm to offset sliding revenues.
Yahoo said its net income in the quarter ending June 30 was $141 million, or 10 cents per share, as compared to $131 million, or nine cents per share, in the same period last year.
But Yahoo also reported that net revenue for the quarter slipped to $1.14 billion from $1.35 billion in the same quarter in 2008.
"I'm pleased with our results this past quarter," said Yahoo chief executive officer Carol Bartz.
"We established a clear, simple vision to be the center of people's lives online, and we're backing that vision with important initiatives to create 'wow' experiences for our users."
Yahoo stock price sank more than three per cent to $16.21 per share in after hours trading that followed release of the earnings figures.
In a conference call with analysts and reporters, Ms Bartz said Yahoo will invest millions in products, engineers, and promotions in the faith that eating into profit margins now will pay-off once the economy rebounds.
"There is certainly reason to believe that revenue will not stay flat forever," Ms Bartz said.
"We're going to get efficiency; we think revenue is going up."
The release of the earnings figures came on the same day Yahoo began rolling out a promised major redesign of its homepage to revitalise its image and incorporate hot new online trends.
The debut of the promised overhaul comes several months ahead of schedule and as speculation grows of renewed talks of an online search deal between Yahoo and global technology giant Microsoft.
Bartz did not comment on rumoured talks with Microsoft regarding an online search advertising deal with the Redmond, Washington-based colossus. She gave her stamp of approval to Microsoft's new Bing search engine.
"I think Bing is actually a good product," Ms Bartz said. "Microsoft deserves kudos for Bing."
Ms Bartz replaced Yahoo co-founder Jerry Yang as chief executive about six months ago amid stockholder fury regarding failed talks with Microsoft, which wanted to merge the companies online search resources to better battle Google.
Ms Bartz has stated publicly that she is open to a deal with Microsoft but that she believes Yahoo's search business to be worth "boatloads of money."
A visit to the new Yahoo homepage reveals a customisable toolbar on the left of the page, which allows users to connect with their favourite outside applications including hot online services such as Facebook.
"Today's launch represents the most significant change to the Yahoo homepage since the company's inception," Sunnyvale, California-based Yahoo said in a release.
"This launch is a major milestone in the Yahoo Open Strategy, which seeks to mesh the Yahoo experience with the best online content and services."
Yahoo began its Open Strategy early last year in a move that built on a Facebook-led trend to open once-walled operating platforms to hip, fun or useful applications made by outside developers or other Internet services.
The new Yahoo homepage is available in the United States at yahoo.com/trynew and is to roll out in France, India, and Britain in the coming week.