Revenues were $1,597 million for the first quarter of 2010, a 1 percent increase from the first quarter of 2009. Income from operations for the first quarter of 2010 was $188 million, compared to $101 million in the first quarter of 2009.

“We had a good quarter, delivering income from operations higher than our outlook,” said Yahoo! Chief Executive Officer Carol Bartz. “Thanks to our efforts, our search share has stabilized, and we grew display advertising by 20% year over year. More importantly, guaranteed display grew by 24% as advertisers took advantage of the science, art and scale that only Yahoo! can offer.”

Under our Search and Advertising Services and Sales Agreement with Microsoft Corporation, Microsoft agreed to reimburse Yahoo! for the cost of operating our algorithmic and paid search services following commencement of performance under the agreement (until the services are fully transitioned to Microsoft). Microsoft separately
agreed to reimburse Yahoo! for transition costs up to an aggregate total of $150 million. Yahoo!’s results for the three months ended March 31, 2010 reflect $78 million in net reimbursements from Microsoft, including $43 million for net transition cost reimbursements and $35 million for search operating cost reimbursements.