SUNNYVALE, California: Yahoo's first quarter results fell short of analysts' expectations as its revamped online search advertising system, dubbed Panama, failed to provide the hoped-for impetus to close the gap on market leader Google.

The company said Q1 revenue had risen 9% to $1.18 billion (€867m; £586m), roughly in line with its own forecast, but below Wall Street's $1.21bn hopes. Net income fell 11% to $142 million.

Yahoo bosses promise Panama will come good in H2 2007. In March, Google held a 48% share of the US search market compared with 27.5% for Yahoo, according to market researcher comScore.

Data sourced from Financial Times online; additional content by WARC staff