NEW YORK (CNNfn) - The Internet search and traffic management technology company Inktomi Corp. reported third-quarter earnings that were double analysts' estimates, as its revenue tripled.|
After the market closed Thursday, Foster City, Calif.-based Inktomi (INKT: Research, Estimates) reported that its third-quarter revenue rose to $61.5 million, a 202 percent gain from $20.3 million in the same period last year and a 30 percent sequential increase over the prior quarter.
Net income for the quarter was $4.5 million, or 4 cents per share, compared to a pro forma net loss of $7.7 million, or 8 cents per share, in the third quarter of the previous year. Analysts had forecast that the company would earn 2 cents per share, according to First Call.
Inktomi's Network Products business - consisting of Traffic Server, Content Delivery Suite and associated services - contributed $43.1 million in revenue for the quarter, a 244 percent gain over the third quarter of the prior year. Its search engine business generated $18.4 million in revenue, a 136 percent increase over the same period last year.
"The quarter was fueled by major network product wins, our drive into the growing enterprise marketplace with network and portal services products, and significant inroads into the emerging wireless arena," said David Peterschmidt, president and CEO of Inktomi, in a news release.
Last month, Inktomi lost its place as the search engine for one of the most popular Web portals, but executives and analysts said the move will have very little, if any, financial impact on the company.
Yahoo! (YHOO: Research, Estimates), one of Inktomi's most visible customers, said last month that technology from privately-held Google will replace Inktomi's as the underlying search engine for its popular Web directory and navigational guide.
At the same time, Yahoo! said Inktomi will become the main provider of search and navigation technology for "Corporate Yahoo!," a new service that will allow business customers to create customized Intranet portals combining company information with Yahoo!'s other content and services.
Inktomi's stock closed Thursday at 129-7/16, almost triple its 52-week low of 43-11/16, but about half its 52-week high of 241-1/2.