Revenue for the second quarter is now expected to be in a range of $36 to $38 million. The company expects to report a pro forma loss in a range of $0.23 to $0.25 per share for the March 2001 quarter. These expected pro forma results exclude our recently divested commerce business, goodwill amortization, non-cash expenses from employee stock options and other one-time charges. These expectations are preliminary and subject to change. Inktomi will report actual results for the March quarter on April 19, 2001.
The company is taking a number of actions designed to ensure that it remains in a leadership position through the economic slowdown. The company plans to reduce its workforce by approximately 25 percent through a combination of attrition and management action. Other discretionary expenses will be reduced and aggressively managed. In connection with the expected restructuring, Inktomi plans to incur a restructuring charge primarily for severance and other employee-related costs in the June quarter.
Economic conditions in the United States and Europe have declined more quickly than we had initially anticipated forcing us to take strong cost-cutting measures for the continued health of our business, said David Peterschmidt, president and chief executive officer of Inktomi. I believe Inktomi’s leading position in its established markets combined with our early success in emerging markets, new products in development and strong cash position provides us with the foundation to see us through the current economic climate.
