Pro forma amounts exclude employee non-cash stock compensation, amortization of goodwill and certain one-time charges including charges for the impairment of intangible assets and restructuring costs.
Inktomi’s Network Products business, comprised of industry-leading solutions for network caching, content distribution, and media broadcasting, is expected to contribute $20 to $21 million in revenue for the September quarter. Inktomi’s Search Solutions business which includes general Web search and enterprise search is expected to contribute $17 to $18 million in revenue in the quarter ended September 30, 2001.
The company also announced a restructuring and reduction in workforce of approximately 150 employees. In connection with the restructuring, Inktomi expects to record a charge of approximately $7.3 million in the quarter ended September 30, 2001 and approximately $3.0 million in the quarter ending December 31, 2001 primarily for facilities consolidation, severance and related costs. Out-placement assistance and other services are also being provided to affected employees. In the September quarter, the company also expects to record a charge of approximately $2.6 million to reflect the impairment of intangible assets associated with past acquisitions and investments.
We are streamlining our business to more closely match our near-term revenue opportunity as we move the company forward into the enterprise market, said David Peterschmidt, president and CEO of Inktomi. We believe we have the focus, products, sales channels and management in place to return the company to growth over the long term.
To further solidify its focus on the enterprise, Inktomi also announced today that Al Shipp has joined the company as senior vice president of worldwide field operations. Shipp brings more than 23 years of professional experience at leading software companies. Before joining Inktomi, Shipp held senior management roles at BEA Systems including president of the E-Commerce Server Division and president of worldwide sales. Prior to joining BEA Systems, Shipp held a variety of sales management positions at IBM including vice president of west region software sales.
SOURCE: COMPANY PRESS RELEASE
