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(Continued)     The RFS Newsletter, Feb. 4, 2006. Page 3
Microsoft yesterday announced the promotion of Joanne Bradford to oversee a global media sales force. Total revenues at MSN, which also include subscription dollars, came in at $593 million, resulting in operating income of $58 million. That represented a 2 percent year-over-year decline in revenues, due to investments in MSN and a 33 percent decline in Internet access revenues, which was expected. "As you know, we're in the middle of a transition," said Liddell, noting that the company is switching from Yahoo Search Marketing ads and will soon solely display its own ads on search engine results pages.

In news on Wednesday, Google is to work with Web analytics firm ZAAZ. For a fee, the two companies will provide services beyond what Google Analytics otherwise offers.

In news on Tuesday, after the close on Wall Street, Google's stock fell as much as 19 percent in after-hours trading. The search giant missed the Street's quarterly earnings expectations because of a higher-than-expected tax rate. Earnings, excluding one-time items, were $1.54 per share, below the consensus expectations of $1.77. Since its August 2004 IPO, the company has beaten the consensus profit forecast by 10 percent to 40 percent and its shares have risen steadily, often spectacularly. The drop slashed billions off the company's market value.

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