On the debut earnings call of new Yahoo CFO Tim Morse, Yahoo announced second quarter revenues of $1.57 billion. Compared with the same period a year ago, earnings were down 13 percent. The company is predicting an even more modest third quarter: “in the range of $1,450 million to $1,550 million.”

Search revenues were $359 million, off 15 percent vs. Q1 of 2009. Display ad revenues were $393, off 14 percent compared to last quarter. However CEO Carol Bartz is quoted in the release expressing general satisfaction with the quarter:

“I’m pleased with our results this past quarter. We established a clear, simple vision to be the center of people’s lives online, and we’re backing that vision with important initiatives to create ‘wow’ experiences for our users,” said Yahoo! chief executive officer Carol Bartz. “We’re confident that this vision will put us on the right path to growth and profitability long term. Our new homepage is a perfect example of our efforts to create innovative products aimed at increasing user engagement while offering the most compelling advertising proposition in the industry.”

There will also be another 5 percent reduction in force, to take place in the next few weeks. Here are some of the slides from the earnings release:

As an aside, the new homepage is live. We’ll offer more information after the earnings call.

Yahoo CEO Bartz and CFO Morse several times emphasized that Yahoo is making the “right investments” for the long term, including a $75 million branding initiative coming this next quarter. On the question of restructuring Morse observed: ”We drained the right buckets and now we’re filling the right buckets to get after this vision to be the center of people’s online lives.”

Bartz repeated several times that Yahoo is the “largest online media company in the world.” She also spoke about mobile and local advertising, emphasizing the global reach of its mobile relationships: 17 countries, 400 devices, 100 carriers. On the local front, she announced a new deal with AT&T that enables the directory publisher’s sales force to sell display ads on Yahoo to small businesses (more on this from Screenwerk). And she underscored how small business advertising was an increasing area of focus for Yahoo.

Finally on impressions of Bing, Bartz said: “I think Bing’s a good product . . . I think Microsoft should be given kudos for Bing.”

Related Topics: Yahoo: Business Issues

About The Author: Greg Sterling is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling. See more articles by Greg Sterling