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Tim Armstrong, the chief executive of AOL, says he has not lost faith that his overhaul will reverse its decline.

Our parent company AOL has just released its quarterly earnings for Q1 2011, and it’s a mixed bag (again). Revenue came in at $551.4 million, which is better than most analysts had anticipated – the company was expected to earn $0.17 per share on revenues of $536.35 million. Actual earnings came in at $0.04 per share, down 86 percent.

A freelance writer who successfully sued newspapers and magazines for copyright infringement will file a class-action lawsuit against the Huffington Post and AOL on Tuesday that seeks compensation for hundreds of unpaid contributors to the online publication.

Slowly but steadily, Microsoft Bing has become a potent threat to Google in the search market. Over the last few months, Microsoft’s aggressive strategy with Bing has started to yield market share gains over competitors Google, Yahoo and AOL in the U.S. search market. Bing’s market share, which was around 11% in September 2010, is now close to 14% as of February 2011.

Twitter Co-Founder Biz Stone will become a "social impact" strategic adviser for AOL, as part of its broader integration with online news site the Huffington Post. He will stay at Twitter.

AOL will slash its workforce 20%, according to a person familiar with the matter, eliminating 950 jobs in the U.S. and India as it struggles to resurrect its business.

The discussions with Michael Wolff's Newser are said to have faltered after the Huffington Post-AOL deal raised questions about the acquisition price.

AOL made some management changes ahead of its integration of the Huffington Post, appointing Jon Brod as chief operating officer of the new Huffington group and saying David Eun would depart.

In the wake of AOL's deal to buy the Huffington Post, some marketing executives are expressing concerns about the liberal-leaning nature of the website and its potential to taint the broader AOL brand.

The deal would give AOL a major presence in journalism, demonstrating the company’s intention to rely more heavily on online advertising.