Inktomi announced Wednesday it would bow out of the content management space, in the hopes that narrowing its focus to online search technology might stem financial losses.
Some 270 Inktomi staff are being let go immediately as part of the restructuring. Inktomi officials expect the layoffs and consolidation of operations to result in a one-time fourth-quarter charge of $30 million.
In addition to its Web search service, used by AOL/Time Warner and other partners, Inktomi offers enterprise search products for corporate use. In the third quarter, Inktomi reported $4.8 million in license revenue for these products as well as $5.9 million in related services revenue.
Overall, the company's Web search business accounted for $13.1 million in sales this quarter.
For the third quarter of fiscal 2002 ended June 30, Inktomi, based here, reported a loss before charges of $13.4 million, or 9 cents per share, on revenue of $23.8 million. First Call/Thomson Financial expected the loss.
After costs related to company restructuring, non-cash deferred stock compensation and other factors, Inktomi's quarterly loss totalled $235.7 million, or $1.62 per share
Inktomi also named Randy Gottfried to the CFO post yesterday, replacing Jerry Kennelly, who is slated to leave the company in September.
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