Yahoo CEO Says 6% Operating Margin "Unacceptable"

SAN FRANCISCO (Dow Jones)-Yahoo Inc.'s (YHOO) Chief Executive Carol Bartz said Wednesday that the Internet giant's 6% operating margin is "unacceptable" and she vowed to regain the respect the company has lost over the past several years.

"Today is the beginning of a journey back to respect," she said in an introductory presentation during the company's Analyst Day event webcast over the Internet.

Referring to ongoing questions about Yahoo's vision and direction, Bartz reiterated that the company shouldn't be thought of as a search or display company. She said Yahoo is a broad-based Internet technology company that competes with a wide range of content sites, including social network Facebook, news provider CNN, sports titan ESPN and gossip page TMZ.

"We wake up every morning with passion to beat every one of them. And you know what? We usually do," she said.

Chief Technology Officer Ari Balogh said Yahoo's model is very simple: Engaging its broad audience and gathering insights about their behavior so the company can provide them with better online experiences and better targeted ads.

Yahoo last week reported that its third quarter profit surged due to cost cutting and asset sales, even as revenue fell 12% compared with a year ago. Relieved analysts said the results indicated that Bartz has made some headway since taking over the company in January.

But Bartz, who was named CEO amidst the worst advertising slump in decades, still has to prove she can reinvigorate the struggling Internet giant and convince investors, employees and customers that she has a strong vision for the company.

-By Scott Morrison; Dow Jones Newswires; 415-765-6118; [e-mail]