Inktomi Corp. (Nasdaq: INKT) was down 2.69 at 15.81 early Thursday afterthe company warned that revenue and earnings for the first quarter endedDecember 31st will be below previous expectations.
The Foster City, California-based maker of Internet software said revenuefor the quarter will be US$80 million to $81 million, up 121 to 124 percentover last year’s first quarter, with pro forma diluted earnings per share ofbreakeven to a penny.
For the fourth quarter, Inktomi reported revenue of $78.6 million, up 190percent from a year earlier, and pro forma earnings before special items of$8.8 million, or 7 cents per share, compared with a loss of $6.1 million, or6 cents.
President and chief executive officer David Peterschmidt said the lowerexpectations for the fourth quarter reflect a sluggish economy. “The currentconditions in the U.S. capital markets and the broader economy have resultedin a slowdown in infrastructure spending,” Peterschmidt said in a statementissued after the close of trading Wednesday.
“While our business will be affected by macroeconomic conditions in the nearterm, we are confident in the long-term outlook for our infrastructureproducts and services,” Peterschmidt added. “We believe we have themanagement, products and financial focus to foster long-term benefits forour shareholders and customers worldwide.”
Inktomi shares have taken a beating lately, and are trading near a 52-weeklow of 13.25, well below the year’s high of 241.50.
Thomas Weisel Partners reportedly downgraded Inktomi to market perform fromstrong buy following the latest announcement.
On Wednesday, Inktomi fell following reports that analysts at MerrillLynch and Robertson Stephens downgraded the stock. Merrill’s Henry Blodgetreportedly lowered his intermediate-term rating to accumulatefrom buy, citing the effects of a slowdown in information technologyspending.
Inktomi plans to report first-quarter results on January 18th.