YAHOO TURNAROUND CONTINUES

Yahoo, continuing a rebound from the dot-com downturn, swung to an unexpectedly large first-quarter profit on a 47% leap in revenue.

The Internet company raised its revenue forecast for the year to between $1.22 billion and $1.28 billion, indicating growth over 2002 of as much as 34%. Yahoo had previously forecast that revenue would be between $1.145 billion and $1.215 billion.

Yahoo also predicted that earnings before interest, taxes, depreciation and amortization in 2003 would be $350 million to $380 million, up from its previous prediction of $295 million to $330 million for the year.

For the quarter, Yahoo reported net income of $46.7 million, or eight cents a share, compared with a year-earlier loss of $53.6 million, or nine cents a share, including a $64.1 million charge from an accounting change.

The numbers are a sharp contrast to the negative profit warnings of other technology concerns in the past few weeks, and provide additional evidence that strategies pushed by CEO Terry Semel are paying off.

"Our numbers are a testament to Yahoo's continued strong performance," Semel said.

Yahoo released its results after the close of regular trading. In 4 p.m. NASDAQ trading Wednesday, Yahoo fell 94 cents to $22.87. Following the announcement, its shares rose to $23.72 in after-hours trading.

For the second quarter, Yahoo is predicting that revenue will rise again to between $295 million and $315 million. It expects earnings before interest, taxes and depreciation of $85 million to $95 million for the period.