Yahoo, the major internet company that reported a 28% drop in profits, said that delays were happening in its deal with Microsoft because it’s waiting for improvements in technology. Once the deal is sealed, Yahoo plans to use Microsoft’s search technology in order to improve the advertising revenue.

However, Yahoo claimed the current system isn’t paying off, so they’re putting things on hold so certain changes can be made.

This quarter, Yahoo brought in $223 million, down from $310 million of this same quarter one year ago.

In order to increase their revenue in the future, Yahoo executives have said that they are trying to expand their fast-growing mobile internet market, and they also want to increase the amount of video advertising on their site.

According to Steve Weinstein who is an analyst at Pacific Crest Securities, the future doesn’t look so dim for Yahoo because they’re showing signs of improvement. “The growth in their display business, when you peel everything back, continues to look good”, he said.

Unfortunately, Yahoo has a long way to go. The Americas, which has been the biggest source of revenue for Yahoo, has been on the decline for two and a half years straight. In the first quarter, the decline jumped to 11%, where before it had only been in the single digits.