Inktomi hit analysts’ reduced estimates in its first quarter Thursday, but lowered estimates for the second quarter and the rest of 2001.
In the quarter, it earned $1 million, or 1 cent a share, on sales of $80.5 million.
First Call Corp. consensus expected it to earn 1 cent a share on sales of $80.2 million following its profit warning earlier this month.
Analysts originally pegged Inktomi for a profit of 3 cents a share.
Inktomi (Nasdaq: INKT) shares closed up 6 cents to $17.50 ahead of the earnings report before moving up to $18.06 in after-hours trading.
The $80.5 million in sales marks a 123 percent improvement from the year-ago quarter when it lost $4 million, or 4 cents a share, on sales of $36.1 million.
Inktomi also said it would sell its commerce business to e-centives Inc., an online direct marketing company, for up to 19.9 percent of e-centives outstanding shares of common stock.
During a conference call with analysts, CEO David Peterschmidt said the company now expects to post a loss of between 3 cents to 5 cents a share in the second quarter on sales of between $63 million to $67 million.
Analysts were forecasting a profit of 2 cents a share in the second quarter on sales of $86.8 million.
“We will incur a modest loss for the next two quarters but plan to remain profitable for the year,'' Peterschmidt said.
The revised forecast excludes about $6 million in sales from the company's commerce business, which is slated to be sold to e-centives Inc.
For the fiscal year, Inktomi now expects to post sales of between $285 million to $305 million, excluding $30 million in commerce business sales.
Last quarter, Inktomi recorded a profit of $8.8 million, or 7 cents a share, on sales of $78.6 million.
Inktomi shares raced up to a 52-week high of $241.50 in March before slumping to a low of $10.81 earlier this month.
Seventeen of the 23 analysts tracking the stock rate it either a “buy” or “strong buy.”