NEW YORK (CNNfn) - The stock of Inktomi Corp., a maker of Internet search and traffic management technology, declined sharply in after-hours trading Thursday, even though the company posted a fourth-quarter pro forma profit that beat Wall Street expectations. |
Inktomi (INKT: Research, Estimates) shares dropped $7 to $76 shortly after the company released its earnings Thursday evening. The decline appears to be the result of guidance that the company gave on a conference call relating to its fiscal first quarter results.
Inktomi, based in Foster City, Calif., posted pro forma earnings of $8.8 million or 7 cents per diluted share in the fourth quarter, compared with a loss of $6.1 million, or 6 cents, in the same period last year. The results excluded amortization of goodwill, employee stock compensation and a one-time charge for purchased in-process research and development.
The company's earnings per share were 2 cents better than the mean analyst forecast, according to First Call/Thomson Financial, which tracks estimates.
The company's fourth-quarter revenues jumped 190 percent to $78.6 million from $27.1 million. The revenue total was about $8 million above the mean analyst estimate, according to First Call.
Inktomi said revenue grew 204 percent in fiscal 2000 to $223.5 million from $73.5 million a year ago. Its pro forma net income was $13 million or 11 cents per diluted share, compared with a net loss of $29.2 million, or 29 cents, in fiscal 1999.
"The year 2000 was historic for Inktomi, as we completed our second year as a public company, achieved operating profitability on an annual basis and furthered our vision of Inktomi as essential to the Internet," said David Peterschmidt, president and CEO, in a statement.
On a conference call after the earnings were released, Inktomi CFO Jerry Kennelly said that the company estimates its revenue for the fiscal first quarter ending in December will be $89-91 million. For fiscal 2001, the company expects its revenue to total $455-465 million. Both of those revenue numbers are above analysts' current estimates.
Kennelly also said that he expects the company to report pro forma earnings per share of 2-3 cents for the December quarter, based on estimated share count 142.5 million. That's below the current mean analyst estimate of 5 cents per share. For all of fiscal 2001, Inktomi expects its earnings to be 27-31 cents per share; the consensus analyst estimate is 28 cents.