After the market closed today, Yahoo! Inc. (NASDAQ: YHOO) reported results for the quarter ended March 31, 2012.

Revenue excluding traffic acquisition costs was $1 Billion for the first quarter of 2012, a 1% increase from the first quarter of 2011.

Income from operations decreased 11 % to $169 million in the first quarter of 2012, compared to $190 million in the first quarter of 2011.

Net earnings per diluted share increased 38% to $0.23 in the first quarter of 2012, compared to $0.17 in the first quarter of 2011.

First Quarter 2012 Revenue Highlights

• Display revenue ex-TAC was $454 million, a 4 percent decrease compared to $471 million for the first quarter of 2011.
• GAAP display revenue was $511 million, a 2 percent decrease compared to $523 million for the first quarter of 2011.
• Search revenue ex-TAC was $384 million, an 8 percent increase compared to $357 million for the first quarter of 2011.
• GAAP search revenue was $470 million, a 3 percent increase compared to $455 million for the first quarter of 2011.

Cash Flow and Cash Balance

• Cash flow from operating activities for the first quarter of 2012 was $297 million, a 45 percent increase compared to $206 million for the same period of 2011.
• Free cash flow was $196 million for the first quarter of 2012, a 247 percent increase compared to $56 million for the same period of 2011.
• Cash, cash equivalents, and investments in marketable debt securities were $2,652 million at March 31, 2012 compared to $2,530 million at December 31, 2011, an increase of $122 million.
• During the first quarter of 2012, Yahoo! repurchased 5 million shares for $71 million.