Yahoo! shares slip as Mayer works to right ship

The quest by Yahoo! chief Marissa Mayer to reverse the struggling Internet pioneer's fortunes stumbled on Tuesday as the company reported that profit rose modestly but revenue had slipped.

Yahoo! shares fell more than four percent to $22.80 in after-hours trade after the California company reported net income of $390.9 million on revenue of $1.14 billion in the quarter that ended March 31.

"I'm pleased with Yahoo!'s performance in the first quarter," Mayer said in a release.

"I'm confident that the improvements we're making to our products will set up the company for long-term growth."