Yahoo! enjoyed a "good quarter" during the first three months of the year, posting total revenues of $1,597 million (£1,037 million), the company has announced.
Over the same period, income from operations stood at $188 million, up 87 per cent on the $101 million recorded a year earlier.
Under the deal that will see the search engine transfer its algorithmic search and pay per click marketing platforms to Microsoft’s platforms, Yahoo! received $43 million in net transition costs and a further $35 million covering search operation costs.
"We view search operating cost reimbursements as an indicator of the long-term cost savings associated with full implementation of the search agreement," the company said.
Yahoo! chief executive Carol Bartz added: "We had a good quarter, delivering income from operations higher than our outlook."
As part of its alliance with Microsoft, Yahoo! will become the client relationship and sales manager for both firms’ premium search advertisers.
The companies aim to complete the transfer of customers to the new, unified system by early 2012.
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