Yahoo Inc. rubbishing all the estimates made in the Wall Street posted a three-fold increase in its first quarter profit. This happened despite the fact that the sales of the company went down.

California-based Internet company said that its partnership with Microsoft Corp. has proved to be a boon for it. It is into a partnership agreement for search and advertising segments with Microsoft.

But even with this, it failed to meet up the analyst expectations in terms of revenue generated. The advertising sales business of the company also went down.

Just after the announcement, the share of Yahoo! saw a sharp decline in its share price. On Wednesday, it saw more than 4 per cent decrease in its stock price which closed at $17.60.

The net income of the company was $310 million and increased from $118 million. It means that the income per share increased from 8 cents to 22 cents. The net income was $1.13 billion.

Yahoo! earnings increased after the sale of its email service Zimbra.

After the progress, the analysts expect that this quarter is going to be the turnaround one for Yahoo! and that 2010 will be the earning year.