Inktomi Reports First Quarter Results

Inktomi Reports First Quarter Results Announces Agreement to Sell Commerce Business FOSTER CITY, Calif., January 18, 2001 - Inktomi Corp. (NASDAQ: INKT) today reported financial results for the first fiscal quarter ended December 31, 2000. Revenues for the quarter totaled $80.5 million, a 123 percent gain over revenues of $36.1 million for the comparable quarter in the last year. Pro forma net income for the quarter, which excludes the amortization of goodwill, employee stock compensation, purchased in process R&D and one-time acquisition-related charges, was $1.0 million, or $0.01 per share compared to a pro forma net loss of $4.0 million, or a pro forma net loss of $0.04 per share in the first quarter of the previous year. ® Inktomi's Network Products business, consisting of the Traffic Server platform, Content Delivery Suite , Media Products and associated services, contributed $54.2 million in revenue for the quarter, a 145 percent gain over the first quarter of the prior year. Inktomi's Portal Services business, comprised of its Search Solutions and Commerce businesses, generated $26.3 million in revenue, an 88 percent increase over the comparable period in the last year. The Search business contributed $21.2 million in revenue, a 100 percent increase over the first quarter of the prior year, and Inktomi's Commerce business contributed $5.1 million in revenue in the quarter. The company ended the quarter with $311.1 million in cash, cash equivalents, restricted cash and short-term investments. In October 2000, Inktomi completed the acquisition of FastForward Networks, developers of the first scalable software technology for the distribution and management of live broadcasting over the Internet. The transaction was accounted for as a pooling of interests. Historical results have been adjusted to reflect the combined companies. "We had a quarter that was underscored by new design wins, expanded market share and increased traction into new areas," said David Peterschmidt, president and CEO of Inktomi. "While our business was and will be affected by macro- economic conditions in the near-term, we are confident that we have the business strategy, product depth and financial strength to steer through the current market conditions and emerge as the leading software infrastructure provider for networks and enterprises worldwide over the long-term." Sale of Inktomi Commerce Business Inktomi today announced the signing of an agreement to sell its Commerce Business to e-centives, Inc., a leading online direct marketing infrastructure company. Inktomi will transfer related employees, equipment and technology associated with its Commerce division to e-centives in exchange for up to 19.9 percent of e-centives' outstanding shares of common stock, some of which will be earned upon the satisfaction of certain revenue and performance targets by e-centives. Inktomi will receive an additional warrant to purchase e-centives common stock upon the satisfaction of additional revenue targets. The transaction is subject to satisfaction of regulatory and other closing conditions. Inktomi Network Products Inktomi's Network Products business extended its reach into multiple markets including content and media distribution, enterprise, satellite, access, broadband and wireless. The company secured design wins at China Mobile, FLAG Telecom and Hughes Network Systems among others, each of which selected Inktomi's network software infrastructure products for the buildout of their caching, content distribution or wireless networks. They join existing customers such as AOL Time Warner, Enron, Exodus Communications, KPNQwest and Madge.web, making Inktomi a leading provider of infrastructure software for networks worldwide. Enterprise customers including Lucent Technologies and Fannie Mae also selected Inktomi's Network Products to speed the flow of data across their networks. In the quarter, the Content Bridge Alliance, an effort designed to ensure that Internet users receive the most up-to-date information available on the Web, announced the addition of six new members including leading companies such as Apogee Networks, Compaq, Hewlett-Packard, Portal Software, StorageNetworks and Vignette Corporation. In the quarter, Inktomi also acquired various business assets of Adero related to billing, settlement and traffic reporting. With this transaction Inktomi assumed the role of operator of the Content Bridge Alliance. Inktomi Search Solutions During the quarter, Inktomi's Search business added marquee names in the enterprise space to its customer roster including MassMutual, 3M, the US Navy and Sears. Repeat business from CDW Computer Centers, Deutsche Telecom and Paychex also contributed to the quarter's performance. About Inktomi Based in Foster City, Calif., Inktomi develops and markets scalable infrastructure software that is essential to the Internet. Inktomi's business is divided into Network Products, comprised of industry leading solutions for network caching, content distribution, and media broadcasting; Search Solutions, providing search and content classification products and services to Internet portals, destination sites and enterprises; and Wireless technologies. Inktomi's customer and strategic partner base includes leading companies such as AOL Time Warner, AT&T, Excite@Home, Intel, iWon, Merrill Lynch, Microsoft, Nokia, RealNetworks, Sun Microsystems and Yahoo! The company has offices in North America, Asia and Europe. For more information visit Inktomi Corporation Unaudited Pro Forma Condensed Consolidated Statements of Operations Inktomi Corporation Unaudited Condensed Consolidated Statements of Operations Inktomi Corporation Unaudited Condensed Consolidated Balance Sheets Contact European PR Contact for Content Bridge Stephanie Forrest +44 207 430 5751 ### This announcement contains forward-looking statements regarding Inktomi's future financial and operating results. These statements are based on current expectations and are subject to a number of risks and uncertainties. Actual results could differ materially from those contained in these statements. Factors that could affect the business and financial results of Inktomi include our substantial dependence on Network Products and media products, the uncertainty of market acceptance of these products, need to expand our sales and distribution capabilities, substantial competition, need to attract and retain portal customers and merchants, the rapidly changing business environment, need to develop and acquire new products and technologies, and risks associated with acquisitions, dispositions, international operations and entry into new markets. For more information and additional risk factors, see "Factors Affecting Operating Results" contained in our Annual Report on Form 10-K/A filed with the Securities and Exchange Commission on January 2, 2001 and in other reports filed by Inktomi with the Securities and Exchange Commission. Inktomi expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any statements to reflect any change in Inktomi's expectations or any change of events, conditions or circumstances on which any such statements are based. Copyright © 2001 INKTOMI CORPORATION. All Rights Reserved. Inktomi, Traffic Server, Content Delivery Suite, Content Bridge, Essential to the Internet and the tri-colored cube logo are all trademarks or registered trademarks of Inktomi Corporation. All other company and product names referenced herein are the trademarks or registered trademarks of their respective holders ------------------------------------------------------------ This information was brought to you by BIT The following files are available for download: