Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWapartments | NWsource | Classifieds | seattletimes.com

Tech Tracks

News, analysis and perspectives from the technology team at The Seattle Times. Have a news tip? Follow the links below to e-mail us.

About the contributors| RSS feeds Subscribe | Blog Home

March 18, 2008 9:16 AM

Yahoo, justifying its 'no' to Microsoft, releases optimistic financial outlook

Posted by Benjamin J. Romano


SEC

Yahoo optimistic investor presentation today included this slide, which shows that the company's forecasts for revenue and cash flow growth are much higher than those of financial analysts.

Yahoo this morning publicized an optimistic investor presentation that spells out its plans to "roughly double operating cash flow over the next three years." The plan was shown to the company's board of directors in December 2007 and is being released now to support the board's determination that Microsoft's acquisition offer of $44.6 billion "substantially undervalues Yahoo."

"Yahoo!'s board of directors is continuing to evaluate all of its strategic alternatives to maximize value for Yahoo! stockholders," the company said in a press release this morning.

The company made an unusual three-year revenue forecast, noting that "our 2009 and 2010 growth is much higher than Street estimates." Yahoo expects to have 2010 revenue of $8.8 billion compared with $7.1 billion -- the mean average estimate of six major Wall Street firms that have made long-term forecasts recently.

Yahoo expects to gain $1.9 billion in revenue during the next three years from display/video advertising, and $1.4 billion in added search revenue.

Much more detail is available from the 35-page presentation itself, which Yahoo filed with the SEC.

The company also reaffirmed its financial guidance for the first quarter and full year, which it initially gave on Jan. 29, two days before Microsoft made its proposal to Yahoo's board. Yahoo expects revenue for the first quarter, excluding traffic acquisition costs, to be $1.28 billion to $1.38 billion, and for the full year to be $5.35 billion to $5.95 billion. Analysts polled by Thomson Financial expect revenue of $1.32 billion and $5.65 billion, for the quarter and year, respectively.

Yahoo's statement of confidence might douse earlier speculation that Yahoo was going to lay an egg when it reports earnings April 22, which would in turn make Microsoft's acquisition offer look even better to Yahoo shareholders.

Digg Digg | Newsvine Newsvine

Submit a comment

*Required Field



Type the characters you see in the picture above.

Recent entries

Mar 20, 08 - 11:35 AM
Survey: Microsoft's corporate brand declining steadily since 2003

Mar 19, 08 - 03:12 PM
Google, Ask.com gained Internet search share as Microsoft, Yahoo slid in February

Mar 19, 08 - 10:54 AM
Adobe CEO 'committed' to Flash for iPhone; touts benefits over Microsoft Silverlight

Mar 18, 08 - 12:55 PM
Microsoft explains when, where and how to get Windows Vista Service Pack 1

Mar 18, 08 - 09:16 AM
Yahoo, justifying its 'no' to Microsoft, releases optimistic financial outlook

Advertising

Marketplace

Vote now for your favorite Seattle-area places
Elect your favorite places to eat, shop and play in the 2008 NWsource People's Picks contest.

Food & drink
Entertainment
Shopping
Travel & recreation

Advertising

Advertising

Categories
Calendar

March

Sun Mon Tue Wed Thu Fri Sat
            1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31          
Browse the archives

March 2008

February 2008

January 2008

December 2007

November 2007

October 2007

From the tech blogosphere
Contributors

Angel Gonzalez
Angel Gonzalez
E-mail|Bio

Kristi Heim
Kristi Heim
E-mail|Bio


Benjamin J. Romano
Benjamin J. Romano
E-mail|Bio

Mark Watanabe
Mark Watanabe
E-mail|Bio

Advertising

Buy a link here