Official announcements from Yahoo Inc. have revealed that the internet major's first-quarter earnings managed to more than double, and a very sharp rebound in display advertising helped the company record its first revenue increase since 2008's third-quarter.

The overall revenue gain had, however, been somewhat restrained by a 14% decline recorded in revenues from the company's search-advertising business.

Yahoo's increase in revenue of 1% was, however, marginally below the expectations pegged by some of the analysts, and the company has issued an outlook for the present period that analysts are looking at as substantially unimpressive.

The news managed to knock down the shares of the company by 3% in late trading on NASDAQ.

For the first quarter of the year, Yahoo posted earnings of $78 Million, and it is expecting to bag in about $75 Million to $85 Million a quarter from Microsoft for the remainder of the year.

"We delivered what I would call a solid quarter", said Yahoo Chief Executive Carol Bartz.