Yahoo, whose board is engaged in high-stakes maneuvers to slip the grasp of Microsoft, reported first quarter revenue of $1.35 billion, excluding traffic acquisition costs, after the market close Tuesday, beating analysts’ consensus estimates of $1.32 billion.

Net income, excluding special items, came in at $150 million , or $.11 per share, versus $154 million, or $.11 in the year-ago period. Analysts polled by Thomson Financial had forecast earnings of $.09 per share. Overall net income was $542.2 million, or $.37 per share, including investment gains from Yahoo’s stake in Chinese Web site Alibaba.com.

The company also forecast second quarter revenue of $1.73 billion to $1.93 billion, well above the consensus analyst forecast of $1.37 billion.

Trading in Yahoo stock was flat Tuesday, with shares falling $.01, or .04 percent, to $28.54. In after-hours trading, Yahoo shares slipped $.19, or .67 percent, to $28.36 as of 5:20 p.m.  Eastern time.

In a conference call, co-founder and Chief Executive Jerry Yang said the results “underscore the fact” that the company’s turnaround efforts are bearing fruit.

In February, Microsoft made an unsolicited $44.6 billion stock and cash offer. Mr. Yang said the offer undervalues Yahoo’s assets and that the board’s rejection of the offer reflects the company’s inherent strengths.

He said the company has been pursuing strategic options, including the Microsoft offer, to maximize shareholder value.

Though the company has made progress in search advertising, which has been dominated by Google, Mr. Yang said Yahoo’s biggest opportunity lies in display advertising.

Reuters reported that Microsoft Chief Executive Steve Ballmer said Tuesday that Yahoo’s earnings report would not prod it to change its offer.

But Robert Becker, an analyst at Argus Research, said a solid quarter would give Yahoo greater leverage.

“The ramifications are pretty clear,” he said. “The better Yahoo’s numbers are, the better their negotiating position with Microsoft. Obviously Microsoft understands that.”

Both Yahoo and Microsoft are struggling to contain the online advertising dominance of Google, which Mr. Becker terms “an innovation machine.”