Yahoo Inc has issued warning that revenue will again fall in this quarter as it gives out traffic to Facebook and Google and as a much-hyped search enterprise with Microsoft Corp failed to deliver quick results.

Yahoo has reported about its 3rd consecutive quarter of receding page views on its websites. Carol Bartz, the CEO of the site who after two years of heading the company is facing immense pressure to turn the once-dominant Internet portal around. She had vowed to investors that in 2011's second half revenue growth will return once its partnership with Microsoft gets squared up.

Brian Pitz, an UBS analyst stated that the firm is passing through a transitional phase and it has not reached the place it needs to be.

The company's shares fell down by two percent roughly, in extended trading after the earnings report. The first-quarter sales forecast which is definitely weaker than what was expected came the same day Yahoo announced its second round of layoffs in six weeks, of about one percent of its world wide workforce.

In contrast to that scenario Google Inc the rival company has said that it is getting ready for its biggest year of hiring ever in 2011.

Yahoo has struggled to keep costs from going up and jumpstart revenue growth, but Bartz stated on Tuesday that the company was committed to invest for providing growth to the company and safeguarded the company's progress during Tuesday.

She stated insolently that she will not withdraw her statement that the company is getting momentum ,while addressing an analyst who tried to contrast the company's receding revenue with executives' claims of progress.

Too much is on the board stated Bartz , taking example of new features in the firm’s Web search product and the successful blending of Yahoo's search advertising service in the United States and Canada with Microsoft in October.