Inktomi warns of lower earnings
The Internet infrastructure company joins the market's chorus of earnings warnings, saying its fourth-quarter revenues will be lower than expected.
The warning comes just a day after several influential analysts downgraded the stock, citing weaknesses across the sector.
A consensus of analysts polled by First Call after those downgrades had expected Inktomi to report earnings of 3 cents per share. The company said Wednesday that it would instead wind up somewhere between a break-even range and earnings of 1 cent per share, representing total fourth-quarter revenues between $80 million and $81 million.
"The current conditions in the U.S. capital markets and the broader economy have resulted in a slowdown in infrastructure spending," said Inktomi CEO David Peterschmidt. "Accordingly, we are adjusting our estimates for the current quarter."
Inktomi produces a range of Net infrastructure products, from caching software that speeds Net performance to search engine technology.