Google reports decline in first quarter revenue

Despite the tought economic climate, internet search giant Google reported a rise in quarterly net profit but said its first quarter revenue declined three percent compared with the fourth quarter of 2008 as revenue growth dropped off.Google Inc's quarterly profit topped expectations, helped by cost controls, but Chief Executive Eric Schmidt said the economic environment remains tough with users still searching but buying less.Shares of the No. 1 U.S. Internet search company initially rose 5 percent on the stronger-than-expected results, but then erased gains to trade flat after hours."We're still basically in uncharted territory," Schmidt said on a conference call. "Google is absolutely feeling the impact. Users are still searching but they're buying less. Ultimately, what that really means is the ads are converting less."Compared to other Internet and media companies that depend on advertising revenue, Google has been extremely resilient to the economic downturn, though its revenue growth has slowed sharply from the heady 50 percent rates it used to enjoy.Google reported first-quarter revenue of $5.51 billion, up 6 percent from the year-ago quarter but down 3 percent from the 2008 fourth quarter -- its first ever sequential decline. The figure was in line with average Wall Street expectations.