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News > Technology
Inktomi sees 1Q shortfall
January 3, 2001: 4:42 p.m. ET

Internet software firm blames U.S. markets, economy for lowered outlook
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NEW YORK (CNNfn) - Inktomi Corp., whose software helps manage the flow of data over the Internet, warned Wednesday that its fiscal first-quarter revenue and earnings will come in below its previous expectations.

The company said revenue for the quarter ended Dec. 31 is now expected to be between $80 million and $81 million, compared with its previous revenue forecast of between $89 million and $91 million.

Inktomi said it expects earnings for the quarter to be between breakeven and a penny per share, compared with its previous guidance of earnings between 2 cents and 3 cents per share.

graphicExecutives at Inktomi in Foster City, Calif., blamed the shortfall on weakening conditions in the U.S. capital markets and the broader economy, which they said have caused a slowdown in spending on Internet infrastructure products.

"While our business will be affected by macro-economic conditions in the near term, we are confident in the long-term outlook for our infrastructure products and services," David Peterschmidt, the company's president and chief executive, said in a statement.

"We believe we have the management, products and financial focus to foster long-term benefits for our shareholders and customers worldwide," Peterschmidt added.

Inktomi (INKT: Research, Estimates) shares ended Wednesday's session $3.94, or 27 percent, higher at $18.50 amid a broader rally in the tech sector sparked by a surprise rate cut by the Federal Reserve. They rose another 12 cents to $18.62 in after-hours trade.

Still, the company's stock has fallen more than 92 percent from its 12-month high of $241.50. graphic

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