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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.

John Borland Staff Writer, CNET News.com
John Borland
covers the intersection of digital entertainment and broadband.
John Borland
Internet infrastructure company Inktomi joined the market's chorus of earnings warnings Wednesday, saying its fourth-quarter revenues would 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.