Yahoo! Inc. (NASDAQ: YHOO) is out with its second-quarter company earnings report that looks mixed before you start comparing these numbers to the Wall Street estimates. Earnings rose 19% to $0.35 per share, versus the consensus of $0.30 per share from Thomson Reuters. This appears to be on a lower share count from the buyback because the actual non-GAAP income from operations was down 13% to $209 million for the quarter. Revenues on an ex-traffic acquisition cost basis were down 1% to $1.071 billion, versus the Thomson Reuters consensus of $1.08 billion. The company’s GAAP revenue was down 7% to $1.135 billion.

Fortunately for the still-new CEO Marissa Mayer, Yahoo! is currently not being judged on its revenue growth as the company is shrinking some efforts to focus on better earnings opportunities elsewhere.

Yahoo! showed that it made nine acquisitions to strengthen its products, content, technology and people: Summly, Astrid, Milewise, Loki Studios, Go Poll Go, PlayerScale, Rondee, Ghostbird Software and Tumblr.

Here is what is happening on its display advertising business (ex-TAC): Display revenue ex-TAC was down 11% to $423 million, while the number of ads sold (ex-Korea) fell 2% and while the price-per-ad (ex-Korea) fell by 12%.

The search business (ex-TAC) was represented as follows: Search revenue ex-TAC was up by 5% to $403 million for the second quarter, while Paid Clicks (ex-Korea) rose by 21% but while the Price-per-Click (ex-Korea) fell by 8%.

Yahoo!’s cash and equivalents fell to $4.8 billion as of June 30, 2013 versus about $6 billion a year ago. The drop in the cash is due to share buybacks and due to acquisitions. CEO Marissa Mayer said:

I’m encouraged by Yahoo!’s performance in the second quarter. Our business saw continued stability, and we launched more products than ever before, introducing a significant new product almost every week. From the new Yahoo! News, the new Yahoo! Sports app, the redesigned Yahoo! search, the new Flickr, the new Yahoo! Mail for tablet, the Yahoo! Weather app, our new Yahoo! app with Summly — this quarter drove tremendous improvements in our product line and our users responded with increased usage and engagement.

Shares of Yahoo! closed down 1.7%, at $26.88 against a 52-week range of $14.59 to $27.68. The stock’s post-earnings reaction is down 2.6% at $26.18 in the after-hours session.

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