updated 7/21/2009 5:38:23 PM ET 2009-07-21T21:38:23

Yahoo Inc.'s second-quarter profit rose 8 percent, boosted by the cost-cutting the Internet company has imposed as it tries to bounce back from a long slump.

The results announced Tuesday marked Yahoo's first quarterly earnings increase since the first three months of 2008.

The Sunnyvale-based company said it made $141.4 million, or 10 cents per share, in the three months ending in June. That was up from income of $131.2 million, or 9 cents per share, last year.

Analysts surveyed by Thomson Reuters had predicted Yahoo would earn 8 cents per share.

"Even in this challenging economic environment, Yahoo had a solid quarter, reflecting the strength of our offerings for our users and advertisers," Yahoo Chief Financial Officer Tim Morse said in a statement.

Revenue for the period slid 13 percent to $1.57 billion. That's the biggest decline so far in a slump that has seen Yahoo fall further behind Internet search leader Google Inc. in the online ad market.

Shares in Yahoo fell 75 cents, or 4.5 percent, to $16 in extended trading Tuesday after the release of the quarterly results. Earlier, it closed down 26 cents, or 1.5 percent, at $16.75.

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