Inktomi Issues Warnings

Inktomi Corp., whose software speeds the flow of Internet content, said fiscal first-quarter earnings and sales will fall short of forecasts, joining many other technology companies that cut their targets. Inktomi shares tumbled on the news in after-hours trading to as low as $13.88, after closing up $3.94 at $18.50 on Nasdaq. The stock has dropped 92% since trading as high as $241.50 in March. The Foster City, Calif.-based software maker said it expects earnings of a penny a share for the quarter ended Dec. 31, below the 3-cent average forecast by First Call/Thomson Financial. The company expects revenue to total $80 million to $81 million, well below the $89.5-million average forecast of analysts polled by First Call. Inktomi, one of the few profitable Internet companies, cited a wave of last-minute order cancellations from its customers, many of them telephone company and Internet service providers.