Google's new web browser incorporates open source software

Internet search engine Google has seen better-than-expected quarterly results even as revenue growth slowed following the economic downturn.

The firm saw net income reach $1.48bn (£900m) in the three months to 30 June, compared to $1.25bn a year before.

Revenue rose 3% for the period at $5.52bn and just over half - 53% - came from outside the US.

Analysts reacted broadly positively to the results, noting that the firm had performed well in containing costs.

The firm was upbeat about the results "especially given the continued macro-economic downturn".

Chief executive Eric Schmidt said: "These results highlight the enduring strength of our business model and our responsible efforts to manage expenses."

Google earned $5.36 a share, excluding certain items, better than the $5.08 per share forecast by analysts.

Sameet Sinha, an analyst with JMP Securities said: "The numbers are good. Revenue was in line with expectations, and strong operating efficiencies were brought about by the new chief executive."

"It definitely shows that Google is a best-of-breed company for online advertising, and it's a must buy."

But Ross Sandler, an analyst at RBC Capital, described the results as mixed.

"Overall, the focus is on what's going to happen in the second half."

Shares in the firm Google gained 1% to $442.60 on but later dropped 2.4% in after-hours trade.

Paid clicks - which include clicks related to ads served on Google sites and the sites of AdSense partners - were 15% higher year-on-year, but 2% less than in the first quarter.