No time for hoots
Yahoo saw a 23 percent drop in profits in the last quarter of 2007 and faces a rough 2008, said The Globe and Mail.
Profits totaled $205.7 million, down from $268.7 million in the same period of 2006. That's well below the already-lowered estimates set by analysts and investors.
CEO Jerry Yang acknowledged that the year did not pan out as expected. He added 2008 will be a battle, primarily against Google.
But he also believes the company is moving in the right direction.
Yahoo plans to lay off 1,000 employees, roughly seven percent of its workforce. It also shut down Brand Universes, an ambitious project launched under ex-CEO Terry Semel.
Analysts say Yahoo's dependence on display ad sales make it more vulnerable than Google, which relies primarily on search and text ads. Troubles may also stem from the decreasing impact on revenue from the Panama platform, which launched almost a year ago.
Read the earnings release or listen to the conference call at Yahoo! Investor Relations.