Yahoo! Inc. announced revenue for Q3 at $1.58 billion, up 19 percent from last year's third quarter but failed to meet Wall Street's revenue expectations.

In September the company announced that its revenue, excluding commissions, would be in the lower range of its forecast because of lower ad sales.

"I'm not satisfied with our current financial performance and we intend to improve it," Yahoo chairman and chief executive officer Terry Semel said during a conference call. "We're not exploiting our considerable strengths as well as we should be."

Semel said the company plans to improve its graphical advertising business. Yesterday, Yahoo announced it has acquired rich media ad tool company AdInterax. Yahoo plans to make these rich media tool to its advertisers at no extra charge.