Inktomi, Alteon exceed earnings expectations
Inktomi doubled the Street estimates in its third quarter Thursday, posting a profit of $4.5 million, or 4 cents a share, on sales of $61.5 million.
First Call Corp. predicted the Internet software developer would earn 2 cents a share in the quarter.
Ahead of the earnings report, Inktomi (Nasdaq: INKT) shares closed up 6 3/8 to 129 7/16.
The $61.5 million in sales marks a 202 percent jump from the year-ago quarter when it lost $7.7 million, or 8 cents a share, on sales of $20.3 million.
"Our financial strength and leadership position combined with our consistent execution has made this Inktomi's strongest quarter ever," said CEO David Peterschmidt in a prepared release. "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."
Company officials said its network products business contributed $43.1 million in sales, more than triple what it generated last year. Its portal service businesses, consisting of its search and commerce engines, generated $18.4 million in sales, more than double last year.
Last quarter, Inktomi checked in with a surprise profit of $1 million, or a penny a share, on sales of $47.3 million.
Its shares moved up to a 52-week high of 241 1/2 in March after falling to a low of 43 11/16 in August.
Seventeen of the 18 analysts following the stock rate it either a "buy" or "strong buy."
Among other Internet-related companies reporting earnings after the bell Thursday:
First Call Corp. consensus expected it to earn 3 cents a share in the quarter.
Ahead of the earnings report, Alteon shares stormed up 17 3/16 to 134 5/16.
The $55.1 million in sales represents a 555 percent explosion compared to the year-ago quarter when it lost $3.9 million, or 45 cents a share, on sales of $7.9 million.
Separately, it announced it will swap $221 million worth of stock to buy Pharsalia Technologies, a privately held developer of content delivery technology.
Its shares closed up 3 11/16 to 88 3/8 ahead of the earnings report.
The $28.7 million in sales marks a 327 percent jump from the year-ago quarter when it lost $6.6 million, or 30 cents a share, on sales of $6.7 million.
First Call Corp. consensus expected the online car dealer to lose 17 cents a share in the quarter.
In the year-ago quarter, it lost $3 million, or 10 cents a share, on sales of $7 million.