Google Thursday again announced another record earnings period, posting revenues of $1.58 billion, a 96 percent increase over the same quarter of last year.

Google’s net income rose to $381.2 million, or $1.32 per diluted share, up from $52 million, or 19 cents per share, a year ago. Analysts had predicted earnings of $1.22 per share.

The earnings were far rosier than the search giant had led investors to expect. Last quarter Google brass cautioned that the summer typically is the weakest time of year for advertising.

Market research eMarketer estimates 2005 will mark the first year that Google’s revenue will outstrip that of competitor Yahoo. Google is expected to close out the year with over $3.6 billion, or 28 percent, of total U.S. online ad revenue. The eMarketer research puts Yahoo’s end-of-year earnings at $3.1 billion, or 24 percent of total U.S. online ad spending.

However, on Tuesday, Yahoo increased its full-year revenue forecast to $3.66 billion to $3.71 billion.

Also on Tuesday, Yahoo reported revenue for its third quarter of $1.33 billion, a 47 percent increase over the $907 million it reported in the third quarter of last year. Net income for the quarter was $254 million, compared to $253 million in the third quarter of last year. Marketing services revenue grew 46 percent to $1.16 billion from $797 million in third-quarter 2004. The Sunnyvale, Calif.-based company estimates fourth-quarter net revenue of $1.03 billion to $1.08 billion

Google’s lead in search shows also no sign of narrowing. Of all U.S. user queries, Google handled 45 percent in September, compared with 23 percent for Yahoo and 12 percent for Microsoft’s MSN, according to a report Thursday by Nielsen/Net-Ratings.

Since going public 14 months ago, Google has expanded far beyond its search roots. In recent months, the company has released a flurry of new products including an instant messenger, the ability to make free Internet telephone calls from personal computers, and a satellite mapping service. Google also wants to provide free wireless Internet access to San Francisco.

The company also has a lot of cash on hand ($7.6 billion.), which some analysts say is an indicator of an acquisition strategy.

Most of the headlines for stories reporting Google’s earnings were pretty straight forward, but here’s one that stood out.

Google is Paris Hilton, Only Hotter

And if all of this is just not enough and you still need to get your Google on, here are a few more items of interest from the last week.

Now Publishers’ Turn to Sue Google over Project

Google Earth Gathers Commercial Real Estate Data

Google gives up on Gmail name in U.K.

Let me know your thoughts or concerns about Google. lisap@revenuetoday.com