Yahoo has reported a net loss for the fourth quarter of 2008 of $303m, despite only slight falls in revenue on the same period in 2007, when the company made a net income of $206m
The loss is mainly due to restructuring charges of $108m, a goodwill impairment charge of $488m and costs of $7m incurred for outside advisers related to Microsoft's acquisition proposals.
Yahoo's revenues were $1,806m for the fourth quarter of 2008, a 1% decrease compared with $1,832m for the same period of 2007.
Excluding traffic acquisition costs, revenues were $1,375m, representing a 2% decrease compared with the same period the year before.
Cash flow from operating activities for the fourth quarter of 2008 was $321m, a 48% decrease compared with $622m for the same period of 2007.
Despite the challenging economic environment, Yahoo delivered adjusted operating cash flow above the midpoint of guidance for the fourth quarter, said newly-appointed chief executive Carol Bartz.
The company made important investments while aggressively managing costs, she said, leaving it better positioned to weather the economic downturn.
"We have work to do, but I am excited by Yahoo's opportunities, and encouraged by the tremendous innovation and momentum I have seen since joining the company as CEO," Bartz said.
Yahoo appointed the former Autodesk chief in mid January to succeed Jerry Yang who lost support after turning down a buyout offer from Microsoft in February 2008.
The appointment ended almost two months of speculation over who would get the top job at Yahoo to help the company recover from huge losses in value.
Yang stepped down as CEO in November 2008 to take a backseat role on the board.
Yahoo's value has declined by $30m since Yang rejected the Microsoft offer at $33 a share, or $47.5bn.