Yahoo’s revenues for the June quarter fell 13% year-over-year to $1.57 billion earning $141 million, up 8%, 10 cents a share, or 16 cents a share non-GAAP.

The company, which took a $65 million restructuring charge, owes the earnings uptick to cost cuts.

Sales of display ads, a particular weak sector, were down 14% year-over-year. Search advertising was down 15%, more than anticipated, to $359 million. Pages views were up 7%.

Google last week squeezed a mediocre 3% revenue increase out of the second quarter for revenues of $5.5 billion. It said big advertisers were coming back after pulling in their horns because of the downturn.

Yahoo was supposed to realize eight cents a share on $1.14 billion, according to Wall Street estimates. After commissions that’s what its revenues were.

The revenue picture may encourage Yahoo, unwilling to call a bottom yet, to cut that unmentioned deal with Microsoft it’s supposed to be close to.

For better or worse Microsoft wants Yahoo’s search business and is willing to pay for it.

This quarter Yahoo is conservatively forecasting revenues of $1.07 billion-$1.15 billion, down 1.5%-7.8% sequentially, compared to Wall Street projections of $1.17 billion.

Its stock was down 4% after-hours.

The quarter was the first full quarter with the company for CEO Carol Bartz (pictured). She’s planning to spend $75 million on a marketing campaign to reposition the Yahoo brand and hire more salespeople and engineers.

She is also going to trim annoying ads in the name of traffic, a move that could cost $75 million.

The company has $4.2 billion in the bank.