Yahoo! Inc. plans to refocus its business, admitting that certain strategic mistakes have hindered its performance. The firm reported a second-quarter drop in profit totaling 2.3 percent, while its revenue growth increased slightly. Yahoo! also lowered its financial predictions for 2007. Expectations for the firm had not been high after Terry Semel, former chief executive officer, resigned abruptly in 2006 and gave leadership of the company to Jerry Yang. Yahoo! issued warnings that its second-quarter earnings would be low due to slower-than-expected sales growth. Yahoo! reiterated its earlier statements that an upgrade to its search advertising system, known as 'Panama,' showed financial gains in the second quarter. Revenue from display advertising rose slower than the company had originally expected. Revenue from partners that carry the search advertising brokered by Yahoo! decreased, partly because of higher commissions paid by the company to these partners. According to Yang, he will spend the next 100 days to develop a long-term strategic plan, making any required changes to staff and organization at the firm. The struggles of Yahoo! have occurred during a time of strong competition from Google Inc. Google will gain about 27 percent of the online-advertising revenue in the United States in 2007, excluding commissions paid to partners, according to analysts' predictions. This is an increase from 24 percent of the market held in 2006.