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Previous: INKTOMI CORP, 8-K/A, EX-99.2, 2000-09-29 |
Next: FIRST TRUST SPECIAL SITUATIONS TRUST SERIES 185, 485BPOS, 2000-09-29 |
EXHIBIT 99.3
INKTOMI CORPORATION SUPPLEMENTARY
PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
INDEX TO INKTOMI CORPORATION
PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
| Inktomi Corporation Pro Forma Condensed Consolidated Financial Information | ||
| Pro Forma Condensed Consolidated Financial Information | F-2 | |
| Pro Forma Condensed Consolidated Statement of Operation for the Year Ended | ||
| September 30, 1999 (Unaudited) | F-3 | |
| Pro Forma Condensed Consolidated Statement of Operation for the Six-Months | ||
| Ended March 31, 2000 (Unaudited) | F-4 | |
| Pro Forma Condensed Consolidated Balance Sheet as of March 31, 2000 | ||
| (Unaudited) | F-5 | |
| Notes to the Unaudited Pro Forma Condensed Consolidated Financial Information | F-6 |
F-1
INKTOMI CORPORATION
PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
The following unaudited pro forma condensed consolidated financial information for Inktomi Corporation (the “Company” or “Inktomi”) gives effect to the acquisition of Ultraseek Corporation by Inktomi Corporation (the “Acquisition.”) The unaudited pro forma condensed consolidated statements of operations for the year ended September 30, 1999 and for the six-months ended March 31, 2000 give pro forma effect to the Acquisition as if the Acquisition and related transactions had occurred on October 1, 1998, the beginning of the 1999 fiscal year. The unaudited pro forma condensed consolidated balance sheet as of March 31, 2000 gives pro forma effect to the Acquisition and related purchase accounting adjustments as if the Acquisition and related transactions had occurred on March 31, 2000. The adjustments relating to the Acquisition and other adjustments are described in the pro forma adjustments notes.
Inktomi’s fiscal calendar comprises 12 calendar months, beginning on October 1st and concluding September 30th. Ultraseek’s fiscal year end is a 52-week of 53-week period ending on the Saturday nearest September 30th. This unaudited pro forma condensed consolidated financial information combines similar periods for the purposes of this filing. All pro forma amounts reflect the Inktomi period ending dates.
The unaudited pro forma condensed consolidated financial information does not purport to represent the results of operations or the financial position of the Company that would have resulted had the Acquisition been consummated as of the date or for the period indicated. The historical financial information set forth below has been derived from, and is qualified by reference to, the consolidated financial statements of Inktomi Corporation and the financial statements of Ultraseek, and should be read in conjunction with those financial statements and notes thereto. The pro forma adjustments are based on purchase accounting adjustments that were determined in accordance with the purchase accounting provisions of Accounting Principals Board Opinion No. 16 (“APB No. 16”), Business Combinations, and related pronouncements.
F-2
INKTOMI CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATION
(In thousands, except per share amounts)
(Unaudited)
| For the Year Ended | ||||||||||||||
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| September 30, 1999 | October 2, 1999 | September 30, 1999 | ||||||||||||
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| Inktomi | Ultraseek | Adjustments | Pro Forma | |||||||||||
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| Revenues | ||||||||||||||
| Network products | $ | 43,242 | $ | — | $ | — | $ | 43,242 | ||||||
| Portal services | 30,261 | 12,283 | — | 42,544 | ||||||||||
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| Total revenues | 73,503 | 12,283 | — | 85,786 | ||||||||||
| Operating expenses | ||||||||||||||
| Cost of revenues | 13,147 | 277 | — | 13,424 | ||||||||||
| Sales and marketing | 56,703 | 4,566 | — | 61,269 | ||||||||||
| Research and development | 30,017 | 1,226 | 4,400 | (a) | 35,643 | |||||||||
| General and administrative | 8,201 | 1,512 | — | 9,713 | ||||||||||
| Amortization of goodwill | — | — | 64,831 | (b) | 64,831 | |||||||||
| Acquisition-related costs | 1,110 | — | — | 1,110 | ||||||||||
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| Total operating expenses | 109,178 | 7,581 | 69,231 | 185,990 | ||||||||||
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| Operating income (loss) | (35,675 | ) | 4,702 | (69,231 | ) | (100,204 | ) | |||||||
| Other income (expense), net | 4,545 | (1,916 | ) | 1,916 | (c) | 4,545 | ||||||||
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| Net income (loss) | $ | (31,130 | ) | $ | 2,786 | $ | (67,315 | ) | $ | (95,659 | ) | |||
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| Basic and diluted net income | ||||||||||||||
| (loss) per share | $ | (0.31 | ) | (0.92 | ) | |||||||||
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| Shares used in calculating basic and | ||||||||||||||
| diluted net income (loss) per share | 101,262 | 2,513 | (d) | 103,775 | ||||||||||
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See Notes to the Unaudited Pro Forma Combined Financial Information
F-3
INKTOMI CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATION
(In thousands, except per share amounts)
(Unaudited)
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For the Six-Months Ended |
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| March 31, 2000 |
April 1, 2000 |
March 31, 2000 | |||||||||||
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| Inktomi | Ultraseek | Adjustments |
Pro Forma |
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| Revenues | |||||||||||||
| Network products | $ | 52,929 | $ | — | $ | — | $ | 52,929 | |||||
| Portal services | 30,467 | 7,897 | — | 38,364 | |||||||||
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| Total revenues | 83,396 | 7,897 | — | 91,293 | |||||||||
| Operating expenses | |||||||||||||
| Cost of revenues | 12,776 | 177 | — | 12,953 | |||||||||
| Sales and marketing | 50,067 | 3,197 | — | 53,264 | |||||||||
| Research and development | 23,527 | 2,964 | — | 26,491 | |||||||||
| General and administrative | 5,986 | 1,837 | — | 7,823 | |||||||||
| Amortization of goodwill | — | 28,160 | 32,415 | (b) | 60,575 | ||||||||
| Acquisition-related costs | 3,999 | — | — | 3,999 | |||||||||
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| Total operating expenses | 96,355 | 36,335 | 32,415 | 165,105 | |||||||||
| Operating loss | (12,959 | ) | (28,438 | ) | (32,415 | ) | (73,812 | ) | |||||
| Other income (expense), net | 7,555 | (198 | ) | 198 | (c) | 7,555 | |||||||
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| Net loss | $ | (5,404 | ) | $ | (28,636 | ) | $ | (32,217 | ) | $ | (66,257 | ) | |
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| Basic and diluted net loss per share | $ | (0.05 | ) | $ | (0.59 | ) | |||||||
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| Shares used in calculating basic and | |||||||||||||
| diluted net loss per share | 108,866 | 2,513 | (d) | 111,379 | |||||||||
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See Notes to the Unaudited Pro Forma Combined Financial Information
F-4
INKTOMI CORPORATION
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
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March 31, 2000 |
April 2, 2000 |
March 31, 2000 |
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| Inktomi | Ultraseek | Adjustments | Pro Forma | |||||||||||
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| Assets | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 101,170 | $ | — | $ | (3,500 | ) | (e) | $ | 97,670 | ||||
| Short-term investments | 168,158 | — | 168,158 | |||||||||||
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| Total cash, cash equivalents and | 269,328 | — | (3,500 | ) | 265,828 | |||||||||
| short-term investments | ||||||||||||||
| Accounts receivable, net | 33,555 | 4,867 | — | 38,422 | ||||||||||
| Prepaid expenses and other current assets | 6,521 | 517 | — | 7,038 | ||||||||||
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| Total current assets | 309,404 | 5,384 | (3,500 | ) | 311,288 | |||||||||
| Investments in equity securities | 175,607 | — | — | 175,607 | ||||||||||
| Property and equipment, net | 64,928 | 178 | — | 65,106 | ||||||||||
| Other assets | 5,250 | 174,929 | 319,840 | (f) | 500,019 | |||||||||
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| Total assets | $ | 555,189 | $ | 180,491 | $ | 316,340 | $ | 1,052,020 | ||||||
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| Liabilities and Stockholders' Equity | ||||||||||||||
| Current liabilities | ||||||||||||||
| Current portion of notes payable | $ | 2,966 | $ | — | $ | — | $ | 2,966 | ||||||
| Current portion of capital lease obligations | 3,267 | — | — | 3,267 | ||||||||||
| Accounts payable | 6,353 | 34 | — | 6,387 | ||||||||||
| Accrued liabilities | 24,111 | 770 | — | 24,881 | ||||||||||
| Deferred revenue | 29,473 | 2,505 | — | 31,978 | ||||||||||
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| Total current liabilities | 66,170 | 3,309 | — | 69,479 | ||||||||||
| Notes payable | 1,904 | — | — | 1,904 | ||||||||||
| Capital lease obligations, less current portion | 3,717 | — | — | 3,717 | ||||||||||
| Other liabilities | 910 | 149 | — | 1,059 | ||||||||||
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| Total liabilities | 72,701 | 3,458 | — | 76,159 | ||||||||||
| Stockholders' equity | 482,488 | 177,033 | 316,340 | (g) | 975,861 | |||||||||
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| Total liabilities and stockholders' equity | $ | 555,189 | $ | 180,491 | $ | 316,340 | $ | 1,052,020 | ||||||
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See Notes to the Unaudited Pro Forma Combined Financial Information
F-5
INKTOMI CORPORATION
NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
PRO FORMA ADJUSTMENTS
Pro forma adjustments for the unaudited pro forma condensed consolidated balance sheet as of September 30, 1999 and the statements of operations for the year ended September 30, 1999 and the six-months ended March 31, 2000 are as follows (in thousands, except per share amounts):
| (a) | Represents the write-off of purchased
Ultraseek in-process research and development in accordance with APB No.
16 and related pronouncements. |
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| (b) | Represents the amortization of purchased
technology and other intangibles capitalized with an assumed life of four
to five years. Amounts shown represent the fair value of intangible assets
acquired at the date of the Acquisition that are capitalized in accordance
with APB No. 16 and related pronouncements. |
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| (c) | Represents the estimated income tax benefit
from the combined losses for the period. |
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| (d) | Represents the issuance of 2,513 shares of
Inktomi Common Stock at a price of $124.96 per share as a part of the
Acquisition. Excludes Common Stock equivalents relating to the settlement
and re-issuance of employee stock options, as they would be anti-dilutive. |
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| (e) | Represents the $3,500 cash payment to
Infoseek Corporation as a part of the Acquisition. |
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| (f) | Represents purchased technology and other
intangible assets. Amounts shown represent the fair value of intangible
assets acquired at the date of the Acquisition that are capitalized in
accordance with APB No. 16 and related pronouncements. This amount also
reflects the write-off of $4,400 of in-process research and development in
accordance with APB No. 16 and related pronouncements. |
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| (g) | Represents the 2,513 shares of Common Stock
issued at a price of $124.96 per share as a part of the Acquisition, the
retirement of all Ultraseek Common Stock and the elimination of all
Ultraseek accumulated deficit in accordance with the Acquisition. This
amount also reflects the charges incurred through the allocation of
in-process research and development in accordance with Financial
Accounting Standards Board (“FASB”) Interpretation No. 4, Applicability of FASB Statement No. 2 to Business Combinations Accounted for by the Purchase Method, and related pronouncements. |
F-6
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