The company was expected to make first quarter revenues of around $232 million; in a statement yesterday, the company said it expects a figure between $170 million and $180 million. When trading on Nasdaq was suspended, shares in the company were for the first time valued below $21. Twelve months previously, its shares traded at a peak of $205.
In a statement, Yahoo! said that its revised guidance for the quarter primarily is the result of,
“the weakening macroeconomic climate, and the resulting shortfall in marketing spending by customers due to the economic uncertainty. In addition, the transition in the company's customer base from pure-play internet businesses to more traditional companies, which have a longer media planning cycle, is occurring more rapidly than anticipated.”
Yahoo! relies on advertising for around 90% of its revenue. Koogle added:
"All businesses in the United States are facing challenging economic conditions that have weakened further in recent weeks, and as consumer confidence and spending has deteriorated, a broad range of customers have delayed their spending across all media formats until their economic outlook improves."
In recent weeks, Fabiola Arredondo, MD of Yahoo! Europe, and Savio Chow, head of Asian operations, also resigned.