Fourth quarter better than anticipated:
siliconvalley.internet.com
Inktomi Saves Q4, Shaves Staff
By Michael Singer
Internet search and content delivery developer Inktomi (NASDAQ:INKT) Monday says it estimates that its earnings in the last three months of the year will be better than they previously reported.
The Foster City, Calif.-based company, which develops network infrastructure software for companies like Yahoo! (NASDAQ:YHOO), Microsoft (NASDAQ:MSFT) and AOL (NASDAQ:AOL), says its revenues are expected to be in a range of $38 - $39 million, about what management expected it to be.
The problem is the company is still expecting a loss for its fourth quarter, albeit somewhere between $0.14 and $0.15 per share. There was a concern by investors that the company's losses could reach as high as $0.16 to $0.18 per share. Multiply that by the millions of shares the company has out there and you get the picture.
"We are streamlining our business to more closely match our near-term revenue opportunity as we move the company forward into the enterprise market," says Inktomi president and CEO David Peterschmidt. "We believe we have the focus, products, sales channels and management in place to return the company to growth over the long term."
Still a loss is a loss, so Inktomi says it will remove 150 employees from its payroll before the end of this year, bringing its total head count to just over 700 people.
The job cuts and other related restructuring costs are expected to put a $12.9 million dent in Inktomi's wallet.
Inktomi is not alone in the job cut department. Many tech businesses began the fourth quarter by laying off workers.
October 2, 2001 |
