Yahoo 1997 Annual Report Download - page 29

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40
To the Board of Dire ctors an d Share holde rs of Yahoo! Inc.
In our opinion, the accompanying consolidated balance s h e e t s a n d t h e re la t e d con s olid a t e d s t a t e m e n t s of
operations, of shareholders' e q u it y, and of cash flow s present fairly, in a ll m a t e ria l re s p e ct s , t h e fin a n cia l
position of Yahoo! In c. a n d it s s u b s id ia ries at December 31, 1997 and 1996, and the re s u lt s of t h e ir op e ra t ion s
and their cash flow s for t h e years ended December 31, 1997, 1996, a n d 1995, in con form it y w ith generally
accepted accounting principles. These fina n cia l s t a t e m e n t s a re t h e re s p on s ib ilit y of t h e Com p a n y's
management; our responsibility is to express a n op in ion on t h e s e fin a n cia l s t a t e m e n t s b a s e d on ou r a u d it .
We con d u ct e d ou r a u d it s of t h e s e s t a t e m e n t s in a ccord a n ce w it h g e n e ra lly a cce p t e d a uditing standards
w hich re q u ire t h a t w e p la n a n d p e rform t h e audit to obtain reasonable assura n ce a b ou t w hethe r t h e fin a n cia l
statements are free of ma t e ria l m is s t a t e m e n t . An a u d it in clu d e s e xa m in in g , on a t e s t b a s is , e vid e n ce
support in g t h e a m ou n t s a n d d is clos u re s in the financial statements, asse s s in g t h e a ccou n t in g p rin cip le s
used, and significant estimates made b y m a n a g e m e n t , a n d e va lu a t in g t h e ove ra ll fin a n cia l s t a t e m e n t
presentation. We b e lie ve t h a t ou r a u d it s p rovid e a re a s on a ble basis for the opinion expressed above .
San Jose, California
January 9, 1998
rep o rt o f independent
accountants q u a rt e rly
(un au dit ed )
fin an cial
data
Not e: Th e q ua rt erly fin ancia l d ata for t h e q uarte rs p re sen ted a b ove has b e en re s ta t ed to re flect
the a cq u isit ion of Fou r11 Corp ora tion w h ich w a s accou nt e d for a s a p oolin g of in terest s.
(1) Pro forma n et in come a nd d ilute d net in com e per s ha re exclu de t he e ffect s of ot her non-recurrin g
cos ts of $21,245,000 re la te d t o t he Ya hoo! Ma rke tpla ce re structurin g incurre d d urin g the q u arte r
end ed J une 30, 1997 a nd $3,850,000 in cu rre d in con nect ion w it h the a cq uisit ion of Fou r11
Corp ora tion durin g the q uarte r e nde d Decemb er 31, 1997.
Qu art er En ded
March 31 Jun e 30 Se pte m be r 30 De ce m be r 31
1997
Net revenues $ 10,065,000 $ 14,107,000 $ 18,134,000 $ 25,105,000
Gross profit 8,628,000 11,789,000 15,746,000 21,876,000
Net income (loss) (740,000) (21,552,000) 681,000 (1,276,000)
Basic and diluted net income
(loss) per share $ (0.02) $ (0.50) $ 0.01 $ (0.03)
Pro form a net income (loss) (1) (307,000) 2,574,000
Pro form a diluted net income
(loss) per share (1) $ (0.01) $ 0.05
1996
Net revenues $ 1,770,000 $ 3,358,000 $ 5,626,000 $ 8,943,000
Gross profit 1,584,000 2,806,000 4,539,000 7,452,000
Net loss (181,000) (1,720,000) (1,718,000) (666,000)
Basic and diluted net loss per share $ (0.01) $ (0.04) $ (0.04) $ (0.02)