Yahoo! Inc. is a global Internet communications, commerce and media company that offers a comprehensive branded network of services. As one of the first online navigational guides to the World Wide Web, Yahoo! is one of the leading guides in terms of traffic, advertising, and household and business user reach. The company also provides online business and enterprise services designed to enhance the productivity and Web presence of Yahoo!'s clients.
Industry:INTERNET SERVICES Sector: Computer and Technology Fiscal Year End:December Last Reported Quarter:06/30/10 Next EPS Date:10/19/10
Capital Structure Solvency and Cash Flow
Balance Sheet
Exiting 1Q10, cash, cash equivalents, and short-term marketable debt securities were $4,244.0 million versus $3,291.1 million in 4Q09. Accounts receivable were $900.3 million versus $1,003.4 million in 4Q09.
Long-term deferred revenue was $101.8 million versus $122.6 million in 4Q09.
Cash Flow
In 1Q10, cash flow from operating activities was $143.6 million, down 45.0% y/y compared with $262.3 million in 1Q09. Capital expenditure was $112.5 million versus $70.5 million in 1Q09. Free cash flow was $64.0 million versus $214.0 million in 1Q09.
Share Repurchase Program
During 1Q10, the Company repurchased 24.8 million shares for $385.0 million.
Last edited Fri Apr 30, 2010 01:13 AM by SreelaBose (Zacks Investment Research)
6
Governance Social Responsibility and Employee Relations
Citizen Sports: On March 17, 2010, YHOO announced a definitive agreement to acquire Citizen Sports, a company that brings the world of sports to fans' favorite social networking sites and mobile devices through innovative applications. The transaction is expected to be complete in 2Q10. Financial terms were not disclosed.
The acquisition will strengthen YHOO’s social strategy of enriching, aggregating and distributing social content from across the entire Web, and offering a highly customizable social experience.
Divesture
On January 12, 2010, YHOO announced that it is selling the e-mail service Zimbra to VMware as part of an effort to focus on the Internet services that generate most of its revenue. Zimbra makes software for collaborating on projects and sending e-mail. According to VMware, it is acquiring all of Zimbra's intellectual property, while allowing Yahoo to continue using the Company's technology in its own e-mail and calendar applications. Financial details were not disclosed. The Companies expect to close the deal by the end of March 2010. Yahoo bought Zimbra for $350.0 million in September 2007.
Last edited Fri Apr 30, 2010 01:41 AM by SreelaBose (Zacks Investment Research)
• Advertising Seasonality – Marketing Services, which represents the major share of YHOO’s revenue, tends to be a seasonal business. With weaker internet advertising and a greater international mix, advertising seasonality will become an issue to monitor, going forward.
• Integration Risks – Integration of technology and services remains a risk to any transaction, and international partnerships, especially in emerging markets, make it more complicated for YHOO.
• Competitive Environment – Strong competition (and related costs) exists from Google, Microsoft, eBay, InterActive Corp, Amazon.com, and AOL. In addition, content costs may rise.
Last edited Fri Apr 30, 2010 06:28 AM by SreelaBose (Zacks Investment Research)
Created by: WikiMigrationBot.
Last Modification: Thursday 03 of June, 2010 09:13:15 CDT by WikiMigrationBot.
