Yahoo: Panama launches Feb. 5

Yahoo said most of its advertisers have transitioned to Panama platform and all will be on board by the end of the quarter.

Panama, which is the code name for Yahoo's project to close the Google text advertising gap, will launch on Feb. 5. The system will rank ads based on quality and bid price. CEO Terry Semel said Panama is "on schedule to roll out to international markets in the second quarter" starting with Japan.

"We expect to see the revenue impact to begin in the second quarter and gain momentum throughout 2007 and beyond. You will see ongoing development of advertising and monetization," said Semel.

Susan Decker, Yahoo CFO, said Yahoo will watch Panama and its algorithm to maximize monetization in the first quarter. Beginning in the second quarter, the system should show improving results.  

Panama has been a closely watched project and its delay late last year hurt Yahoo management credibility. Yahoo has revamped its management lineup and is looking for a 2007 rebound.

The Panama news comes as Yahoo reported fourth quarter results that topped Wall Street expectations. The company reported revenue of $1.7 billion with earnings per share of 19 cents a share. Excluding one-time items, Yahoo reported earnings of 16 cents a share, three cents ahead of Thomson First Call estimates.