Inktomi axes 20 per cent of it staff

NEWS By Dawn Kawamoto Inktomi, a former technology highflier whose products help speed the delivery of internet content, announced yesterday it is cutting about 20 per cent of its work force. The California-based company will eliminate 85 positions by the end of the year, leaving it with 300 employees. Last year, the company trimmed its staff by 18 per cent. David Peterschmidt, president and CEO of Inktomi, said in a statement "Current economic conditions in enterprise software mandate that Inktomi further adjust its cost structure to move towards cash flow breakeven performance. "Inktomi's focus remains steady on providing search solutions for the web and enterprise markets as we continue to see long-term growth potential for our products." On 24 October, the company plans to report fourth-quarter revenue of about $20m, in line with analysts' expectations. Inktomi expects a pro forma loss of five cents to seven cents per share. Inktomi's shares traded at 31 cents at the close of regular trading Tuesday. In after-hours trading, shares fell to 24 cents. At their peak, Inktomi shares were worth more than $200 per share. Dawn Kawamoto writes for News.com