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Yahoo! expands offerings
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October 8, 1997: 3:47 p.m. ET
Company signs 3 deals, beats analysts' earnings estimates
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NEW YORK (CNNfn) - Internet navigation provider Yahoo! Inc. announced three deals Wednesday that will expand its content offerings and put them into the homes of more computer users.
The company also reported earnings of $1.6 million, or 3 cents a share, in the quarter ended Sept. 30, compared with a net loss of $1.1 million, or 3 cents a share, in the year-ago quarter.
Yahoo! had an operating profit of $222,000 on revenues of $17.3 million, vs. an operating loss of $2,573,000 on revenues of $5.5 million a year earlier.
Although the upside profit surprise was small on a relative scale, analysts noted it was above their consensus estimates of 1 cent a share and demonstrates Yahoo! continues to build one of the few profitable Internet consumer brands.
Yahoo! Inc. said it has secured an agreement allowing Internet users of Gateway 2000 Inc. computers direct access to Yahoo! services.
The Internet media company said the service feature will be available from Gateway desktops that have integrated a Gateway-customized version of Microsoft's new Internet Explorer 4.0.
It said its My Yahoo!, Yahoo! Search and the My Yahoo! News Ticker will become available to those Gateway computers beginning in the fourth quarter of the year.
Yahoo! also said it is purchasing online directory company Four11 Corp. Privately held Four11 offers online e-mail and phone directories along with the Web-based e-mail service Yahoo! Mail.
Yahoo! will issue 1,654,000 shares of its common stock for all outstanding Four11 shares, options and warrants. The transaction will be accounted for as a pooling of interests. Yahoo! expects to take a one-time charge of approximately $4 million in its fourth quarter in connection with the purchase.
"With the acquisition of Four11's core technologies and resources, we are able to expand our communications offerings and provide a broader range of value-added services for current and new Internet users," said Tim Koogle, Yahoo! president and chief executive officer.
Yahoo! also announced that a customized version of the Internet Explorer browser featuring Yahoo!'s customized news component will be distributed directly to buyers of Compaq Computer Corp.'s Presario line of computers.
Compaq computers with the customized browser will be able to access the My Yahoo! news ticker, which delivers updated news, sports and stock quotes to desktops.
--From staff and wire reports.
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