<PAGE>   1

================================================================================

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                 --------------

                                    FORM 10-Q

                                 --------------


                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934


                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2001


                                     0-24339
                            (Commission File Number)

                                 --------------

                               INKTOMI CORPORATION
             (Exact name of Registrant as specified in its charter)

                                 --------------

                 DELAWARE                            94-3238130
         (State of Incorporation)        (I.R.S. Employer Identification No.)

                             4100 EAST THIRD AVENUE
                          FOSTER CITY, CALIFORNIA 94404
                    (Address of principal executive offices)


                                 (650) 653-2800
              (Registrant's telephone number, including area code)
                                 --------------


        Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes [X]  No [ ]

        The number of shares outstanding of the Registrant's Common Stock,
$0.001 par value, as of April 30, 2001 was 127,942,405.


================================================================================


<PAGE>   2

                               INKTOMI CORPORATION

                                    FORM 10-Q

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2001


                                TABLE OF CONTENTS


<TABLE>
<CAPTION>
                                                                                                                  PAGE
                                                                                                                  ----
<S>                                                                                                               <C>
PART I. FINANCIAL INFORMATION:

        Item 1. Financial Statements (Unaudited)

                a) Condensed Consolidated Statements of Operations for the three
                     months and six months ended March 31, 2001 and 2000........................................    3

                b) Condensed Consolidated Balance Sheets as of March 31, 2001
                     and September 30, 2000.....................................................................    4

                c) Condensed Consolidated Statements of Cash Flows for
                     the six months ended March 31, 2001 and 2000...............................................    5

                d) Notes to Condensed Consolidated Financial Statements.........................................    6

            Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.......    11

            Item 3. Quantitative and Qualitative Disclosures About Market Risk..................................    22

PART II.  OTHER INFORMATION:

            Item 4. Submission of Matters to a Vote of Shareholders.............................................    23

            Item 6. Exhibits and Reports on Form 8-K............................................................    24

            Signature...........................................................................................    26
</TABLE>

        This report on Form 10-Q and other oral and written statements made by
the Company to the public contain and incorporate forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, and Section 21E
of the Securities Exchange Act of 1934. When used in this report, the words
"anticipate," "believe," "expect," "intend," "may," "will" and similar
expressions identify forward-looking statements. Forward-looking statements in
this report include, but are not limited to, those relating to the general
direction of our business, including our Network Products and Portal Services
businesses; our ability to successfully enter new markets such as the
enterprise, wireless and content networking markets; our ability to introduce
new products and services and enhance existing products and services to meet
customer needs, particularly in the area of on-demand and live streaming media;
our expected expenses for future periods; our ability to expand our sales and
distribution capabilities; our focus on both domestic and international markets;
our ability to develop and maintain productive relationships with providers of
leading network technologies; and the possibility of acquiring complementary
businesses, products, services and technologies. Although we believe our plans,
intentions and expectations reflected in these forward-looking statements are
reasonable, we can give no assurance that these plans, intentions or
expectations will be achieved. Actual results, performance or achievements could
differ materially from those contemplated, expressed or implied by the
forward-looking statements contained in this report. Important factors that
could cause actual results to differ materially from our forward-looking
statements are set forth in this report under the headings "Factors Affecting
Operating Results," "Management's Discussion and Analysis of Financial Condition
and Results of Operations" and in other reports filed with the Securities and
Exchange Commission. These factors are not intended to represent a complete list
of the general or specific factors that may affect us. Other factors, including
general economic factors and business strategies, may be significant, presently
or in the future, and the factors set forth in this report may affect us to a
greater extent than indicated. You should not rely on these forward-looking
statements, which reflect our position as of the date of this report. We do not
assume any obligation to revise forward-looking statements.



                                       1
<PAGE>   3

        Based in Foster City, California, we were incorporated in California in
February 1996 and reincorporated in Delaware in February 1998. In this report,
"Inktomi," "the Company," "our," "us," "we" and similar expressions refer to
Inktomi Corporation and its subsidiaries. Inktomi, Essential to the Internet,
Traffic Server, Content Delivery Suite, Content Bridge, Search Everywhere,
Media-IXT and the tri-colored cube design and other marks are service marks,
trademarks or registered trademarks of Inktomi Corporation in the United States
and in other countries. All other trademarks, trade names or service marks
appearing herein are owned by their respective owners.



                                       2
<PAGE>   4

                          PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS


                               INKTOMI CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


<TABLE>
<CAPTION>
                                                                 FOR THE THREE                         FOR THE SIX
                                                                  MONTHS ENDED                        MONTHS ENDED
                                                                    MARCH 31,                           MARCH 31,
                                                           ---------------------------         ---------------------------
                                                             2001              2000              2001              2000
                                                           ---------         ---------         ---------         ---------
                                                                   (UNAUDITED)                         (UNAUDITED)
<S>                                                        <C>               <C>               <C>               <C>
Revenues
      Network products ................................    $  16,473         $  30,792         $  70,656         $  52,929
      Portal services .................................       23,012            16,477            49,333            30,467
                                                           ---------         ---------         ---------         ---------
         Total revenues ...............................       39,485            47,269           119,989            83,396

Operating expenses
      Cost of revenues ................................        9,111             6,855            19,145            12,776
      Sales and marketing .............................       40,500            28,645            87,876            51,804
      Research and development ........................       23,956            13,986            46,877            25,672
      General and administrative ......................        6,812             4,621            12,736             8,613
      Acquisition-related costs .......................           --                --            19,497             3,999
      Purchased in-process research and development ...           --                --               430                --
      Amortization of intangibles and other assets ....       19,308                --            35,516                --
                                                           ---------         ---------         ---------         ---------
         Total operating expenses .....................       99,687            54,107           222,077           102,864
                                                           ---------         ---------         ---------         ---------
Operating loss ........................................      (60,202)           (6,838)         (102,088)          (19,468)

Other income, net .....................................        2,320             3,757             6,315             7,569
                                                           ---------         ---------         ---------         ---------

Pretax loss ...........................................      (57,882)           (3,081)          (95,773)          (11,899)

Income tax provision ..................................         (436)               --              (652)               --
                                                           ---------         ---------         ---------         ---------

Net loss ..............................................    $ (58,318)        $  (3,081)        $ (96,425)        $ (11,899)
                                                           =========         =========         =========         =========

Earnings per share
Basic and diluted net loss per share ..................    $   (0.46)        $   (0.03)        $   (0.77)        $   (0.11)
                                                           =========         =========         =========         =========

Shares outstanding
Shares used in calculating basic and
   diluted net loss per share .........................      125,731           111,602           125,188           111,216
                                                           ---------         ---------         ---------         ---------
</TABLE>



          See Notes to the Condensed Consolidated Financial Statements



                                       3
<PAGE>   5

                               INKTOMI CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                    (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


<TABLE>
<CAPTION>
                                                                                         MARCH 31, 2001   SEPTEMBER 30, 2000
                                                                                         --------------   ------------------
                                                                                           (UNAUDITED)        (RESTATED)
<S>                                                                                      <C>              <C>
ASSETS
   Current assets
      Cash and cash equivalents .........................................................   $  14,529         $  41,879
      Restricted cash ...................................................................     128,957           119,616
      Short-term investments ............................................................     128,271           176,632
                                                                                            ---------         ---------
         Total cash and cash equivalents, restricted cash and short-term investments.....     271,757           338,127
      Accounts receivable, net ..........................................................      30,997            50,633
      Prepaid expenses  and other current assets ........................................       9,054             7,895
                                                                                            ---------         ---------
         Total current assets ...........................................................     311,808           396,655
   Investments in equity securities .....................................................      47,426           117,898
   Property and equipment, net ..........................................................      79,506            85,055
   Intangibles and other assets .........................................................     326,665           319,648
                                                                                            ---------         ---------
         Total assets ...................................................................   $ 765,405         $ 919,256
                                                                                            =========         =========

LIABILITIES AND STOCKHOLDERS' EQUITY
   Current liabilities
      Accounts payable ..................................................................   $  15,272         $  10,101
      Accrued liabilities ...............................................................      63,572            38,816
      Deferred revenue ..................................................................      39,282            53,774
      Current portion of notes payable ..................................................       7,500             5,307
      Current portion of capital lease obligations ......................................       3,208             3,713
                                                                                            ---------         ---------
         Total current liabilities ......................................................     128,834           111,711
   Notes payable, less current portion ..................................................         481             1,261
   Capital lease obligations, less current portion ......................................       1,418             2,487
   Other liabilities ....................................................................         307               735
                                                                                            ---------         ---------
         Total liabilities ..............................................................     131,040           116,194

   Stockholders' equity
   Common Stock, $0.001 par value; 1,500,000 authorized at
      March 31, 2001 and September 30, 2000; 127,687 outstanding at
      March 31, 2001 and 126,649 at September 30, 2000 ..................................         128               127
   Additional paid-in capital ...........................................................     892,044           894,844
   Deferred stock compensation and other ................................................     (30,107)          (46,514)
   Accumulated other comprehensive income ...............................................     (25,737)           60,143
   Accumulated deficit ..................................................................    (201,963)         (105,538)
                                                                                            ---------         ---------
         Total stockholders' equity .....................................................     634,365           803,062
                                                                                            ---------         ---------
         Total liabilities and stockholders' equity .....................................   $ 765,405         $ 919,256
                                                                                            =========         =========
</TABLE>



          See Notes to the Condensed Consolidated Financial Statements



                                       4
<PAGE>   6

                               INKTOMI CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                                  FOR THE SIX MONTHS ENDED
                                                                                                         MARCH 31,
                                                                                                 ---------------------------
                                                                                                   2001              2000
                                                                                                 ---------         ---------
                                                                                                         (UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                                              <C>               <C>
Net loss ................................................................................        $ (96,425)        $ (11,899)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
   Depreciation and amortization ........................................................           52,247             9,916
   Stock based compensation .............................................................            6,664               801
Changes in assets and liabilities:
   Accounts receivable ..................................................................           19,636           (10,203)
   Prepaid expenses and other assets ....................................................           (8,219)           (6,022)
   Accounts payable .....................................................................            5,171                21
   Accrued liabilities and other ........................................................           24,328            10,772
   Deferred revenue .....................................................................          (14,492)           26,084
                                                                                                 ---------         ---------
      Net cash provided by (used in) operating activities ...............................          (11,090)           19,470

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of property and equipment ..................................................          (21,752)          (35,101)
   Proceeds from sale of equipment ......................................................               --             3,380
   Investments in equity securities, net ................................................           (4,247)          (45,173)
   Sales of short-term investments, net .................................................           39,225            48,732
   Business acquisition .................................................................          (35,903)               --
                                                                                                 ---------         ---------
      Net cash used in investing activities .............................................          (22,677)          (28,162)

CASH FLOWS FROM FINANCING ACTIVITIES
   Proceeds (payments) on notes payable .................................................            1,413            (5,219)
   Proceeds (payments) on obligations under capital leases, net .........................           (1,574)            1,193
   Proceeds from notes receivable for stock .............................................               65               309
   Proceeds from exercises of stock options and warrants ................................            6,879            36,895
                                                                                                 ---------         ---------
      Net cash provided by financing activities .........................................            6,783            33,178

   Effect of exchange rates on cash and cash equivalents ................................             (366)             (242)
                                                                                                 ---------         ---------
   Increase (decrease) in cash and cash equivalents .....................................          (27,350)           24,244
   Cash and cash equivalents at beginning of period .....................................           41,879            87,324
                                                                                                 ---------         ---------
   Cash and cash equivalents at end of period ...........................................        $  14,529         $ 111,568
                                                                                                 =========         =========

SUPPLEMENTAL CASH FLOW INFORMATION
   Cash paid for interest ...............................................................        $  (1,195)        $  (1,364)
                                                                                                 =========         =========
   Taxes paid ...........................................................................        $    (652)        $      --
                                                                                                 =========         =========
   Assets acquired under capital leases .................................................        $     995         $   3,778
                                                                                                 =========         =========
</TABLE>



          See Notes to the Condensed Consolidated Financial Statements



                                       5
<PAGE>   7

                               INKTOMI CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1.  THE COMPANY AND BASIS OF PRESENTATION

        Inktomi was incorporated in February 1996 to develop and market scalable
software applications designed to significantly enhance the performance and
intelligence of large-scale networks.

        We have prepared the condensed consolidated financial statements
included herein pursuant to the rules and regulations of the Securities and
Exchange Commission ("SEC"). Certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to such
rules and regulations. In the opinion of management, the condensed consolidated
financial statements reflect all adjustments that are necessary for the fair
presentation of results for the periods shown. The results of operations for
such periods are not necessarily indicative of the results expected for the full
fiscal year or for any future period. These financial statements should be read
in conjunction with our audited consolidated financial statements and notes
thereto included in our annual report on Form 10-K/A for the year ended
September 30, 2000 filed with the SEC on January 2, 2001 and our Current Report
on Form 8-K dated April 12, 2001. The Condensed Consolidated Balance Sheet as of
September 30, 2000 has been derived from audited financial statements but does
not include all disclosures required by generally accepted accounting principles
in the United States. Such disclosures are contained in our Annual Report on
Form 10-K/A.

        The accompanying condensed consolidated financial statements include the
accounts of Inktomi Corporation and its wholly owned subsidiaries. All
intercompany accounts and transactions have been eliminated. While the quarterly
financial information is not audited, the financial statements included herein
reflect all normal, recurring adjustments that are, in the opinion of
management, necessary to state fairly the results for the quarter and six month
periods ended March 31, 2001. Certain prior period balances have been
reclassified to conform to the current period presentation.

NOTE 2.  ACQUISITIONS

        In October 2000, we acquired FastForward Networks, Inc. ("FastForward"),
a developer of software solutions for efficiently enabling streaming media over
networks, in exchange for approximately 12.0 million shares of our Common Stock.
The transaction was accounted for as a pooling of interests. Accordingly, all
financial information included herein has been restated to reflect the combined
operations of FastForward and Inktomi. FastForward had $0.7 million in revenues
and raised $88.9 million through various stock issuances from its inception in
May 1998 through September 30, 2000. We recorded acquisition-related costs of
approximately $19.5 million in the three months ended December 31, 2000,
primarily for investment banking fees, accounting, legal and other expenses.

        In December 2000, we acquired various business assets of Adero, Inc.
("Adero") relating to billing, settlement and traffic reporting and licensed
other related technologies from Adero. With this transaction, we assumed the
role of operator for Content Bridge alliance services. Content Bridge is an
alliance of technology and network service providers formed to enable
cross-network content distribution and speed the delivery of content from the
point of origin to end users. As a result of the acquisition, we recorded
goodwill of $35.9 million under Intangibles and other assets, which is being
amortized on a straight-line basis over 60 months, as well as $0.4 million for
in-process research and development that was expensed as a one-time charge. From
the date of acquisition, the results of operations relating to Content Bridge
have been included in our condensed consolidated financial statements. We
accounted for the transaction under the purchase method of accounting. Included
in our revenues for the six month period ended March 31, 2001, is installment
basis revenue from Adero on an agreement consummated in December 1999.

NOTE 3.  INVESTMENT IN AIRFLASH, INC.

        At March 31, 2001, we held 12,659,562 (split adjusted) shares of Series
B Preferred Stock purchased at $0.95 per share, representing a 29.4% ownership
share of AirFlash, Inc. ("AirFlash"), a global application service provider for
the delivery of mobile content and commerce services. In the previous quarter,
this investment was recorded in the Condensed Consolidated Balance Sheet under
Investments in equity securities. We have



                                       6
<PAGE>   8

determined that a more appropriate accounting treatment is to record the
investment as goodwill and amortize it on a straight-line basis over 60 months.
Prior period balances have been reclassified to conform to this treatment.

NOTE 4.  DISPOSITION OF ASSETS

        In March 2001, we consummated the divestiture of our Commerce Division
to e-centives, Inc. ("e-centives"). As part of the sale, we transferred various
business assets to e-centives consisting primarily of computer equipment,
software, intellectual property and contracts, and e-centives hired certain
employees of the Commerce Division. In exchange for the assets, we received
2,551,700 shares of Common Stock of e-centives valued at approximately $8.66 per
share, of which 382,755 shares are held in escrow pending satisfaction of
certain performance criteria, and 637,925 shares are held in escrow subject to
claims for indemnity by e-centives. We also received a warrant to purchase up to
1,860,577 shares of e-centives on or after March 28, 2006, which will become
exercisable, if at all, upon the achievement of certain performance criteria by
the Commerce Division. Financial results herein include revenues and expenses
generated and incurred by our Commerce Division through the closing of the
transaction.

NOTE 5.  CALCULATION OF NET LOSS PER SHARE

        Shares of common stock used in computing basic and diluted net loss per
share ("EPS") are based on the weighted average shares of common stock
outstanding in each period. Basic net loss per share is calculated by dividing
net loss by the average number of outstanding shares of common stock during the
period. Diluted net loss per share is calculated by adjusting the average number
of outstanding shares of common stock assuming conversion of all potentially
dilutive stock options and warrants under the treasury stock method. Excluded
from the computation of diluted earnings per share for the quarter and six month
periods ended March 31, 2001, are options and warrants to acquire 13,283,056
shares of Common Stock as their effects would be anti-dilutive. Excluded from
the computation of diluted earnings per share for the quarter and six month
periods ended March 31, 2000, are options and warrants to acquire 18,732,278
shares of Common Stock as their effects would be anti-dilutive.

NOTE 6.  COMPREHENSIVE NET INCOME (LOSS)

        Comprehensive net income (loss) includes foreign currency translation
gains and losses and unrealized gains and losses on equity securities that have
been previously excluded from net income and reflected instead in stockholders'
equity. The components of comprehensive net income (loss) are as follows (in
thousands):

<TABLE>
<CAPTION>
                                           For the Three Months Ended       For the Six Months Ended
                                                    March 31,                       March 31,
                                              2001            2000            2001            2000
                                            ---------       ---------       ---------       ---------
<S>                                         <C>             <C>             <C>             <C>
Net loss .............................      $ (58,318)      $  (3,081)      $ (96,425)      $ (11,899)

Unrealized gain (loss) on
  available-for-sale securities ......        (16,884)       (120,009)        (85,514)        122,254
Foreign currency translation loss ....            (46)           (201)           (366)           (242)
                                            ---------       ---------       ---------       ---------
Comprehensive net income (loss) ......      $ (75,248)      $(123,291)      $(182,305)      $ 110,113
                                            =========       =========       =========       =========
</TABLE>

NOTE 7.  DERIVATIVES

        Effective December 31, 2000, the Company adopted Statement of Financial
Accounting Standards ("SFAS") No. 133, Accounting for Derivative Instruments and
Hedging Activities, which establishes accounting and reporting standards for
derivative instruments and for hedging activities. SFAS No. 133 requires that an
entity recognize all derivatives as either assets or liabilities on the balance
sheet and measure those instruments at fair value. The accounting for changes in
the fair value of a derivative depends on the intended use of the derivative and
the resulting designation.



                                       7
<PAGE>   9

        We designate our derivatives based upon criteria established by SFAS No.
133. For a derivative designated as a fair value hedge, the gain or loss is
recognized in earnings in the period of change together with the offsetting loss
or gain on the hedged item attributed to the risk being hedged. For a derivative
designated as a cash flow hedge, the effective portion of the derivative's gain
or loss is initially reported as a component of other comprehensive income and
subsequently reclassified into earnings when the hedged exposure affects
earnings. The ineffective portion of the gain or loss is reported in earnings
immediately. For a derivative not designated as a hedging instrument, the gain
or loss is recognized in earnings in the period of change.


        Currently, we do not enter into any foreign exchange forward contracts
or any other hedging activities. In conjunction with certain investing
activities, we have acquired derivative securities. The value associated with
these derivatives has been minimal. There were no other derivatives as of March
31, 2001, or at fiscal year-end September 30, 2000. The adoption of SFAS No. 133
did not have a material impact on our operations or financial position.

NOTE 8.  SEGMENT INFORMATION


        We have two reportable operating segments: Network Products and Portal
Services. Network Products consists of Inktomi Traffic Server, Content Delivery
Suite, Media Products, Wireless Products and associated applications. Portal
Services consists of Inktomi Search Solutions and the Inktomi Commerce Engine.
Operating segments are defined as components of an enterprise about which
separate financial information is available that is evaluated regularly by the
chief operating decision maker, or decision making group, in deciding how to
allocate resources and in assessing performance. Our chief operating
decision-maker is our Chief Executive Officer. Our reportable segments are
organized primarily by technology. Each of these segments is managed separately
because they offer and distribute distinct technologies and services with
different methods of delivery and customer bases.


        We evaluate performance and allocate resources to our operating segments
based on a variety of factors, including revenues, operating profit, market
potential, customer commitments and strategic direction. Acquisition-related
costs, purchased in-process research and development, amortization of
intangibles and other assets, and amortization of deferred compensation expense
are not included in management's evaluation of performance by the operating
divisions, as they are primarily organizational in nature. The accounting
policies of the reportable segments are the same as those described in the
summary of significant accounting policies in our Form 10-K/A for the year ended
September 30, 2000, as filed on January 2, 2001. We do not track assets by
operating segments. Financial information about segments (unaudited, in
thousands):

<TABLE>
<CAPTION>
                                                          FOR THE THREE MONTHS ENDED MARCH 31, 2001
                            -------------------------------------------------------------------------------------------------------
                                                                         PURCHASED
                                                                         IN-PROCESS
                                                           ACQUISITION-   RESEARCH   AMORTIZATION OF  AMORTIZATION OF
                             NETWORK          PORTAL         RELATED        AND      INTANGIBLES AND  DEFERRED STOCK
                            PRODUCTS         SERVICES         COSTS     DEVELOPMENT   OTHER ASSETS     COMPENSATION         TOTAL
                            --------         --------      -----------  -----------  ---------------  ---------------      --------
<S>                         <C>              <C>           <C>          <C>          <C>              <C>                  <C>
Revenues ...........        $ 16,473         $ 23,012         $  --        $   --        $     --         $     --         $ 39,485
Operating loss .....        $(32,515)        $ (5,148)        $  --        $   --        $(19,308)        $ (3,231)        $(60,202)
</TABLE>


<TABLE>
<CAPTION>
                                                          FOR THE THREE MONTHS ENDED MARCH 31, 2000
                            -------------------------------------------------------------------------------------------------------
                                                                         PURCHASED
                                                                         IN-PROCESS
                                                           ACQUISITION-   RESEARCH   AMORTIZATION OF  AMORTIZATION OF
                             NETWORK          PORTAL         RELATED        AND      INTANGIBLES AND  DEFERRED STOCK
                            PRODUCTS         SERVICES         COSTS     DEVELOPMENT   OTHER ASSETS     COMPENSATION         TOTAL
                            --------         --------      -----------  -----------  ---------------  ---------------      --------
<S>                         <C>              <C>           <C>          <C>          <C>              <C>                  <C>
Revenues ...........        $ 30,792         $ 16,477         $  --        $   --        $     --         $     --         $ 47,269
Operating loss .....        $     34         $ (5,442)        $  --        $   --        $     --         $ (1,430)        $ (6,838)
</TABLE>



                                       8
<PAGE>   10

        One customer exceeded 10% of Network Products revenues in the quarter
ended March 31, 2001, and two different customers each exceeded 10% of Network
Products revenues in the quarter ended March 31, 2000. One customer exceeded 10%
of Portal Services revenues, and two different customers each exceeded 10% of
Portal Services revenue in the quarters ended March 31, 2001 and 2000,
respectively.


<TABLE>
<CAPTION>
                                                         FOR THE SIX MONTHS ENDED MARCH 31, 2001
                            -------------------------------------------------------------------------------------------------------
                                                                         PURCHASED
                                                                         IN-PROCESS
                                                           ACQUISITION-   RESEARCH   AMORTIZATION OF  AMORTIZATION OF
                             NETWORK          PORTAL         RELATED        AND      INTANGIBLES AND  DEFERRED STOCK
                            PRODUCTS         SERVICES         COSTS     DEVELOPMENT   OTHER ASSETS     COMPENSATION         TOTAL
                            --------         --------      -----------  -----------  ---------------  ---------------      --------
<S>                       <C>             <C>             <C>           <C>          <C>              <C>                 <C>
Revenues ...........      $  70,656       $  49,333       $      --       $      --       $      --       $      --       $ 119,989
Operating loss .....      $ (29,245)      $ (10,736)      $ (19,497)      $    (430)      $ (35,516)      $  (6,664)      $(102,088)
</TABLE>


<TABLE>
<CAPTION>
                                                         FOR THE SIX MONTHS ENDED MARCH 31, 2000
                            -------------------------------------------------------------------------------------------------------
                                                                         PURCHASED
                                                                         IN-PROCESS
                                                           ACQUISITION-   RESEARCH   AMORTIZATION OF  AMORTIZATION OF
                             NETWORK          PORTAL         RELATED        AND      INTANGIBLES AND  DEFERRED STOCK
                            PRODUCTS         SERVICES         COSTS     DEVELOPMENT   OTHER ASSETS     COMPENSATION         TOTAL
                            --------         --------      -----------  -----------  ---------------  ---------------      --------
<S>                         <C>              <C>           <C>          <C>          <C>              <C>                  <C>
Revenues ...........        $ 52,929         $ 30,467         $     --         $ --        $    --        $     --         $ 83,396
Operating loss .....        $   (938)        $(12,296)        $ (3,999)        $ --        $    --        $ (2,235)        $(19,468)
</TABLE>

        One customer exceeded 10% of Network Products revenues, and two
different customers each exceeded 10% of Network Products revenues in the six
months ended March 31, 2001 and 2000, respectively. One customer exceeded 10% of
Portal Services revenues, and one different customer exceeded 10% of Portal
Services revenues in the six months ended March 31, 2001 and 2000, respectively.

NOTE 9.  RECENT ACCOUNTING PRONOUNCEMENTS

        In November 2000, the Financial Accounting Standards Board ("FASB")
Emerging Issues Task Force ("EITF") reached a consensus on EITF Issue 00-19,
Determination of Whether Share Settlement is Within the Control of the Issuer
for Purposes of Applying Issue No. 96-13, Accounting for Derivative Financial
Instruments Indexed to, and Potentially Settled in, a Company's Own Stock. The
issue requires derivatives indexed to, and potentially settled in, a company's
own stock to be classified in stockholders' equity only if the contract permits
the company to settle in unregistered shares (among other requirements).
Derivatives outstanding before the effective date of this pronouncement are not
impacted until June 30, 2001. We do not expect the adoption of EITF Issue 00-19
to have a material impact on our financial position or results of operations.

        In December 1999, the SEC issued Staff Accounting Bulletin ("SAB") No.
101, Revenue Recognition in Financial Statements. SAB No. 101 discusses certain
generally accepted accounting principles regarding revenue recognition in
financial statements, including the specification of certain criteria that
should be met before revenue is recognized. These criteria include: persuasive
evidence that an arrangement exists, delivery has occurred or services have been
rendered, the seller's price to the buyer is fixed or determinable, and
collectibility is reasonably assured. In March 2000, the SEC issued SAB No.
101A, Amendment: Revenue Recognition in Financial Statements, and SAB No. 101B,
Second Amendment: Revenue Recognition in Financial Statements, to defer for the
effective date of implementation of SAB No. 101 until no later than the fourth
fiscal quarter of fiscal years beginning after December 15, 1999, with earlier
application encouraged. We have adopted SAB No. 101, as amended, and it has not
had a material effect on our financial position or results of operations.



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<PAGE>   11

NOTE 10.  STOCK SPLITS

        Historical weighted average shares outstanding and loss per share
amounts have been restated to reflect all stock splits and acquisitions
accounted for as pooling of interests.

NOTE 11.  STOCK OPTION EXCHANGE PROGRAM

        In February 2001, the Inktomi Board of Directors approved an employee
retention program. Under the program, all employees (including executive
officers and outside directors) were given the opportunity to cancel one or more
stock options previously granted to them in exchange for one or more new stock
options to be granted six months and one day from the date the old options are
cancelled, provided the individual is still employed or providing service on
such date. The participation deadline for this program was February 28, 2001.
The number of shares subject to the new options will be equal to the number of
shares subject to the old options, and the exercise price of the new options
will be the fair market value of Inktomi Common Stock on the date they are
granted. The new options will have the same vesting schedule as the old options
and will be immediately exercisable as to vested shares when granted (however
new options granted to executive officers and outside directors will lose three
months of vesting and be subject to a trading blackout of three months following
the grant). In total, 12.8 million stock options were cancelled as a result of
this program.

        In accordance with accounting rules, stock options granted during the
six month period prior to implementation of the option exchange program that are
not canceled as part of the program may be subject to variable plan accounting
beginning in the fiscal quarter ended March 31, 2001. Inktomi granted options to
purchase approximately 4.8 million shares, excluding options that were canceled
as part of the program, at an average exercise price of $24.92 per share during
the six months prior to February 28, 2001, including approximately 3.1 million
shares granted in December 2000 at an exercise price of $17.88 per share. Other
stock options that may be granted in the six months following implementation of
the option exchange program may also be accounted for in this manner. In
accordance with generally accepted accounting principles, we will be required to
record a non-cash compensation cost for the options until the options are
exercised, forfeited or cancelled without replacement. The valuation will be
based on any excess of the closing stock price at the end of the reporting
period or date of exercise, forfeiture or cancellation without replacement, if
earlier, over the fair market value of our Common Stock on the option's issuance
date. The resulting compensation charge to earnings will be recorded as the
underlying options vest. Depending upon movements in the market value of our
Common Stock, this accounting treatment may result in significant compensation
charges in future periods. No compensation charges were recorded for any such
options in the quarter ended March 31, 2001.

NOTE 12.  SUBSEQUENT EVENTS

        In April 2001, we announced a restructuring and our intention to reduce
our workforce by approximately 25 percent, or approximately 250 employees,
through a combination of attrition and management action. As a result of this
planned workforce reduction, we expect to incur a one-time charge of
approximately $4.0 million to $6.0 million for severance and other related costs
in the quarter ending June 30, 2001.



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<PAGE>   12

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

        This Report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, including, without limitation, statements regarding our
expectations, beliefs, intentions or future strategies that are signified by the
words "expects", "anticipates", "intends", "believes", "may", "will" or similar
language. All forward-looking statements included in this document are based on
information available to us on the date hereof, and we assume no obligation to
update any such forward-looking statements. Actual results could differ
materially from those projected in any such forward-looking statements. In
evaluating our business, prospective investors should carefully consider the
information set forth below under the caption "Factors Affecting Operating
Results" set forth herein. We caution investors that our business and financial
performance are subject to substantial risks and uncertainties.

OVERVIEW

        Inktomi Corporation is a leading provider of scalable infrastructure
software. Our software products are designed to significantly enhance the
performance and intelligence of large-scale networks. Our software products and
services are divided into two broad categories: Network Products and Portal
Services. Networks Products is composed of four core technologies: the Traffic
Server network cache platform, a powerful caching technology that enables
frequently accessed information to be stored in and served from dedicated local
systems close to the users who use the information most often; the Content
Delivery Suite software solution, a set of applications that manage the complex
task of distributing and tracking content and applications across service
provider and enterprise networks; Media Products, technologies enabling live and
on-demand audio and video broadcasting across service provider and enterprise
networks; and Wireless Products, technologies enabling the faster delivery of
content over wireless networks. Portal Services consists of our Search
Solutions, which includes our Internet search engine services and licensed
enterprise search and categorization software; and our Commerce Engine, a
high-performance commerce application that enables portals and other Internet
destination sites to offer online commerce services through their sites to end
users.

        Network Products revenues are composed of license, consulting, support
and upgrade fees in connection with the Traffic Server network cache platform,
Content Delivery Suite software solutions, Media Products and Wireless Products.
License fees are generally based on the number of CPUs running the software and
are generally recognized upon shipment of the software assuming all other
revenue recognition criteria have been met. Consulting, support and upgrade fees
are recognized ratably over the service period as the services are performed.

        Portal Services revenues are composed of revenues generated through our
Search Solutions and Commerce Engine. We generate revenues from our Search
Solutions through a variety of contractual arrangements, which include general
service fees, per-query search fees and search service hosting fees, database
inclusion fees and search software licensing fees, all of which are recognized
in the period earned. Our contracts for the Commerce Engine provide for payments
consisting of annual infrastructure service fees, transaction fees from
participating online merchants and per-query search fees, and advertising
revenues and general service fees from Internet portals and other Web site
customers. To date, revenues from online commerce have consisted primarily of
annual infrastructure service fees and non-recurring engineering fees.

        The Network Products segment generated operating losses of $32.5 million
and $29.2 million in the quarter and six month periods ended March 31, 2001,
respectively. This represents an increase in operating losses of $31.2 million
and $26.5 million over the comparable fiscal 2000 periods. The Portal Services
segment generated operating losses of $5.1 million and $10.7 million in the
quarter and six month periods ended March 31, 2001. This represents a decrease
in operating loss of $0.4 million and $2.0 million over the comparable fiscal
2000 periods. The Network Products and Portal Services results exclude
acquisition-related costs, purchased in-process research and development,
amortization of deferred stock compensation and amortization of intangibles and
other assets. For additional segment information, refer to Note 8, Segment
Information, included in the notes to the unaudited condensed consolidated
financial statements, as presented earlier in this Form 10-Q.

        We believe there is an emerging market opportunity to provide
intelligent software applications that enable enterprises and service providers
to manage, distribute and deliver information using application layer networking
or content networking. We believe that the use of content networking technology
can dramatically improve the quality of experience for network users and will
enable network owners to offer additional services. To address this new



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<PAGE>   13

market opportunity, we have initiated a project to modify and enhance our
existing caching, content distribution, streaming and management technologies,
and integrate them into a single suite of new product solutions. In general, we
expect to continue to incur significant sales and marketing, product development
and administrative expenses across all lines of business, and in particular, to
focus on the enterprise market and to support our new wireless and content
networking initiatives. We expect that these expenses coupled with our
anticipated revenues will result in continued losses. We will need to
significantly increase revenues over current levels to achieve profitability in
the future. We cannot be sure that this growth will occur.

        In March 2001, we consummated the divestiture of our Commerce Division
to e-centives, Inc. As part of this sale, we transferred various business assets
to e-centives consisting primarily of computer equipment, software, intellectual
property and contracts, and e-centives hired certain employees of the Commerce
Division. In exchange for the assets, we received 2,551,700 shares of Common
Stock of e-centives valued at approximately $8.66 per share, of which 382,755
shares are held in escrow pending satisfaction of certain performance criteria,
and 637,925 shares are held in escrow subject to claims for indemnity by
e-centives. We also received a warrant to purchase up to 1,860,577 shares of
e-centives on or after March 28, 2006, which will become exercisable, if at all,
upon the achievement of certain performance criteria by the Commerce Division.
Financial results herein include revenues and expenses generated and incurred by
the Commerce Division through the closing of the transaction, but will not
include such data going forward.

        In April 2001, we announced our intention to reduce our workforce by
approximately 25 percent, or approximately 250 employees, through a combination
of attrition and management action. As a result of this workforce reduction, we
expect to incur a one-time charge for severance and other related costs of
approximately $4.0 million to $6.0 million in the quarter ending June 30, 2001.
On a periodic basis, we review our investments in equity securities for other
than temporary declines in fair value and our intangibles and other assets for
impairments in value, which may result in charges in future periods.

RESULTS OF OPERATIONS

REVENUES

        Total revenues were $39.5 million and $120.0 million in the quarter and
six month periods ended March 31, 2001. This represents a decrease of $7.8
million or 16% in the quarter ended March 31, 2001, and an increase of $36.6
million or 44% in the six month period ended March 31, 2001, over the comparable
periods in fiscal 2000. Total revenues decreased $41.0 million or 51% over the
preceding quarter ended December 31, 2000. The weakness in revenue for the
quarter was due largely to a steep reduction in our Network Products sales. For
the quarter and six month periods ended March 31, 2001, no customer exceeded 10%
of total revenues. For the quarter ended March 31, 2000, one customer exceeded
10% of total revenues and for the six month period ended March 31, 2000, two
customers, including the aforementioned customer, each exceeded 10% of total
revenues. We market and sell our products to customers located in the United
States and abroad, both through our direct sales force and through our channel
partners. Historically, the percentage of sales to customers located outside of
the United States has varied substantially, reflecting the early stage build out
of our international markets and operations. We expect this variation to
continue for the foreseeable future. We have generated most of our revenues
through direct sales efforts, except in Asia where our revenues have been
principally generated through our channel partners. We will need to expand our
existing channel relationships and establish new channel relationships worldwide
to broaden our sales reach and revenue opportunities.

        Network products revenues were $16.5 million and $70.7 million in the
quarter and six month periods ended March 31, 2001. This represents a decrease
of $14.3 million or 47% in the quarter ended March 31, 2001, and an increase of
$17.7 million or 33% in the six month periods ended March 31, 2001, over the
comparable periods in fiscal 2000. Network product revenues decreased $37.7
million or 70% over the preceding quarter ended December 31, 2000. The
year-to-year six month period increase was primarily due to increased licenses,
in the first quarter of fiscal 2001, of Traffic-Server and Content Delivery
Suite, particularly to network service provider customers in the content
delivery, access and hosting markets. The year-to-year quarterly decrease and
the decrease from the preceding quarter were primarily due to lower demand for
our Network Products in our core service provider markets resulting from
deteriorating economic conditions and the inability to access capital markets by
our customers and prospects. In the past, several customers purchased our
products in a single transaction to satisfy



                                       12
<PAGE>   14

their anticipated requirements for as much as a year or more. In recent periods,
many of our target customers have significantly downsized or deferred their
network build-outs and are re-evaluating their capital spending. During the
quarter, our Network Products revenues were primarily from existing customers
and were generated from access networks, channels and enterprise customers. For
the quarter ended March 31, 2001, one customer exceeded 10% of Network Products
revenues and for the six month period ended March 31, 2001, a different
customer exceeded 10% of Network Products revenues. For the quarter ended March
31, 2000, two customers each exceeded 10% of Network Product revenues, and for
the six month period ended March 31, 2000, two customers, including one of the
aforementioned customers, each exceeded 10% of Network Products revenues.

        Portal services revenues totaled $23.0 million and $49.3 million in the
quarter and six month periods ended March 31, 2001, an increase of $6.5 million
or 40% and $18.9 million or 62% over the comparable periods in fiscal 2000.
Portal Services revenues decreased $3.3 million or 13% over the preceding
quarter ended December 31, 2000. The year-to-year increases resulted mainly from
an increase in licenses of our Search Solutions software to the enterprise
customers. The decrease from the prior quarter is the result of a modest
decrease in our Web search business offset by growth in our license enterprise
search products and modest growth of Index Connect, our paid inclusion service.
Of the total Portal Services revenues for the quarter and six month periods
ended March 31, 2001, $21.1 million and $42.3 million were derived from Inktomi
Search Solutions, and $2.0 million and $7.1 million were derived from the
Inktomi Commerce Engine, respectively. For the quarter and six month periods
ended March 31, 2001, one customer exceeded 10% of Portal Services revenues. For
the quarter ended March 31, 2000, two different customers each exceeded 10% of
Portal Services revenues and for the six month period ended March 31, 2000, one
of the same customers exceeded 10% of Portal Services revenues.

        During the quarter and six month periods ended March 31, 2001, we
recognized revenues of approximately $1.6 million and $17.8 million,
respectively, on contracts, development, and licensing arrangements with
customers in which we are equity shareholders. During the quarter and six month
periods ended March 31, 2000, we recognized net revenues of approximately $4.5
million and $18.1 million, respectively, on contracts and licensing arrangements
with customers in which we are equity shareholders. Prices and terms on these
contracts and arrangements were comparable to those given to other similarly
situated customers.

EXPENSES

        Operating expenses include cost of revenues, selling and marketing
expenses, research and development expenses, general and administrative
expenses, acquisition-related expenses, purchased in-process research and
development and amortization of intangibles and other assets. Research and
development, sales and marketing and general and administrative expenses
primarily consist of personnel and related costs. As a result of the sale of our
Commerce Division and our restructuring announced in April 2001, we expect a
modest decline in certain personnel-related expenses in the near term.

        In connection with the completion of our public offerings and our
business acquisitions, certain options granted in 2000 and 1999 have been
considered to be compensatory. Compensation associated with such options was
$3.2 million and $6.7 million for the quarter and six month periods ended March
31, 2001, an increase of $1.8 million or 126% and $4.4 million or 198% over the
comparable periods in fiscal 2000. As of March 31, 2001, we had unamortized
deferred compensation of $30.1 million which will be charged to operations as
the underlying options vest.

COST OF REVENUES

        Cost of revenues consists primarily of expenses related to the operation
of our search and commerce services, primarily depreciation, network and hosting
charges, and royalties associated with our Media applications. Cost of revenues
were $9.1 million and $19.1 million in the quarter and six month periods ended
March 31, 2001, an increase of $2.3 million or 33% and $6.4 million or 50% over
the comparable periods in fiscal 2000. The increases were due primarily to
additional depreciation, network and hosting charges resulting from expansions
of our data centers in the United States and abroad during fiscal 2000, and
increased royalties on our Media products. We expect cost of revenues to remain
flat in the near term.



                                       13
<PAGE>   15

SALES AND MARKETING EXPENSES

        Sales and marketing expenses consist of personnel and related costs for
our direct sales force and marketing staff and marketing programs, including
trade shows and advertising. Sales and marketing expenses were $40.5 million and
$87.9 million in the quarter and six month periods ended March 31, 2001, an
increase of $11.9 million or 41% and $36.1 million or 70% over the comparable
periods of fiscal 2000. This increase was primarily due to an increase in the
number of sales and marketing personnel, additional marketing programs and
increased sales commissions. We expect that sales and marketing expenses will
remain flat or decline slightly as a result of our recent restructuring and a
slowing of our marketing and advertising expenditures in the near term.

RESEARCH AND DEVELOPMENT EXPENSES

        Research and development expenses consist primarily of personnel and
related costs for our development and technical support efforts. Research and
development expenses were $24.0 million and $46.9 million in the quarter and six
month periods ended March 31, 2001, an increase of $10.0 million or 71% and
$21.2 million or 83% over the comparable periods of fiscal 2000. The increase
was primarily due to an increase in the number of research and development
personnel to support expansion of our Search Solutions and Network Products
businesses, online commerce development, and increases in quality assurance,
technical support and technical publications personnel. We have not capitalized
any software development expenses to date. We believe significant investments in
research and development is essential to our future success and expect that
research and development expenses will increase in future periods, although they
may decline slightly in the near term due to our recent restructuring.

GENERAL AND ADMINISTRATIVE EXPENSES

        General and administrative expenses consist primarily of personnel and
related costs for general corporate functions, including finance, accounting,
human resources, facilities and legal. General and administrative expenses
totaled $6.8 million and $12.7 million in the quarter and six month periods
ended March 31, 2001, an increase of $2.2 million or 47% and $4.1 million or 48%
over the comparable periods of fiscal 2000. This increase was due primarily to
an increase in the number of general and administrative personnel, increased
accounting and legal costs incurred in connection with business activities and
purchases related to our corporate headquarters in Foster City, California. We
expect general and administrative expenses to remain flat or decline slightly
from the previous quarter as a result of recently initiated expense savings
programs and our recent restructuring.

ACQUISITION-RELATED COSTS

        As a result of our FastForward acquisition in October 2000 and our
WebSpective acquisition in October 1999, we recorded acquisition-related costs
of $19.5 million and $4.0 million in the six month periods ended March 31, 2001
and 2000, respectively, primarily for investment banking fees, accounting, legal
and other expenses. As of March 31, 2001, $1.6 million in accrued liabilities
related to acquisition-related costs remained outstanding.

PURCHASED IN-PROCESS RESEARCH AND DEVELOPMENT

        A portion of the purchase price we paid for various assets of Adero has
been allocated to developed technology and in-process research and development
("IPRD"). We identified and valued the developed technology and IPRD by
conducting extensive interviews, analyzing data provided by the acquired
companies concerning developmental products, considering the stage of
development of such products and the time and resources needed to complete them,
and assessing the expected income generating ability of the products, target
markets and associated risks. The income approach, which includes an analysis of
the markets, cash flows, and risks associated with achieving such cash flows,
was the primary technique utilized in valuing the developed technology and IPRD.
Based on our analysis of these variables, we recorded a one-time purchased IPRD
charge of $0.4 million in the six month period ended March 31, 2001.

AMORTIZATION OF INTANGIBLES AND OTHER ASSETS

        Amortization of intangibles and other assets primarily relates to our
purchase acquisition of Ultraseek Corporation and asset purchase from Adero.
Also included is the goodwill amortization associated with our



                                       14
<PAGE>   16

investment in AirFlash which is being amortized over a 60 month period.
Amortization of intangibles and other assets totaled $19.3 million and $35.5
million in the quarter and six month periods ended March 31, 2001.

OTHER INCOME, NET

        Other income, net includes interest on our cash, cash equivalents and
short-term investments, less expenses related to our debt and capital lease
obligations, loss on disposal of assets and write down of our investment in
equity securities. Other income, net totaled $2.3 million and $6.3 million in
the quarter and six month periods ended March 31, 2001, a decrease of $1.4
million or 38% and $1.3 million or 17% over the comparable periods of fiscal
2000. This decrease was primarily due to impairments against our investments in
equity securities in the quarter and six month periods ended March 31, 2001.

INCOME TAX PROVISION

        Our income taxes totaled $0.4 million and $0.7 million in the quarter
and six month periods ended March 31, 2001, primarily as a result of our
operations in the United Kingdom. Our effective income tax rate may change
during the remainder of fiscal 2001 if operating results differ significantly
from current projections.

NET LOSS

        We recorded net losses of $58.3 million and $96.4 million or net losses
of $0.46 and $0.77 per share, in the quarter and six month periods ended March
31, 2001, respectively, compared to net losses of $3.1 million and $11.9 million
or net losses of $0.03 and $0.11 per share, in the comparable periods of fiscal
2000. These results include Commerce Division activity, acquisition-related
costs, purchased in-process research and development and amortization of
deferred compensation, intangibles and other assets. Excluding these costs, we
recorded net losses of $27.6 million and $23.9 million or net losses of $0.22
and $0.19 per share, in the quarter and six month periods ended March 31, 2001.
This compares to a net income of $0.9 million or net income of $0.01 per share
for the quarter ended March 31, 2000 and a net loss of $2.1 million or net loss
of $0.02 per share for the six month period ended March 31, 2000.

LIQUIDITY AND CAPITAL RESOURCES

        Cash and cash equivalents, restricted cash and short-term investments
totaled $271.8 million at March 31, 2001, a decrease of $66.4 million or 20%
from $338.1 million at fiscal year-end September 30, 2000. The decrease
primarily came from cash used in operating activities and investing activities,
including purchases of property and equipment as well as investment banking and
other fees associated with our acquisition of FastForward.

        We used $11.1 million in cash from operations in the six month period
ended March 31, 2001. This compares to $19.5 million generated from operations
in the comparable period in fiscal 2000. The increase in cash used from
operations was primarily due to an increase in our net loss, offset by increases
in accounts payable and accrued liabilities.

        We have made significant investments in property and equipment since
inception. These investments consist largely of computer servers, workstations,
networking equipment and leasehold improvements associated with our corporate
headquarters in Foster City, California. We invested $21.8 million and $35.1
million in the six month periods ended March 31, 2001 and 2000, respectively,
primarily for leasehold improvements and computer equipment.

        Investments in equity securities totaled $47.4 million at March 31,
2001, a decrease of $70.5 million or 60% from $117.9 million at fiscal year-end
September 30, 2000, primarily due to sales of our short-term investments for
operating capital and the decrease in value of the securities of the Technology
companies that comprise our equity investment portfolio. Our investments that
have readily determinable fair values are marked-to-market with any change from
cost or prior value as an adjustment to stockholders' equity. Other strategic
investments in equity securities that are not publicly traded are carried at
cost less valuation allowances. All of our investments in equity securities are
comprised of strategic investments in Technology companies. Technology stock
values are volatile and therefore our investments in equity securities balance
may fluctuate significantly in the future. From time to time, we have used debt
and leases to partially finance capital purchases. At March 31, 2001, we had
$12.6 million in total loans and capitalized lease obligations outstanding. Our
underlying assets collateralize the loans, and the underlying equipment obtained
through the lease agreements collateralizes each capitalized lease.
Approximately



                                       15
<PAGE>   17

$8.0 million of our debt at March 31, 2001 was in the form of bank loans. The
bank loans include certain covenants requiring minimum liquidity, tangible net
worth and profitability over time.

        In April 2000, we entered into a lease commencing November 1, 2001 for
approximately 400,000 square feet of office space in two mid-rise office
buildings in Foster City, California. Aggregate payments to be made under the
lease are approximately $324.4 million over the lease term ending October 31,
2016. This lease limits the liquidity of $9.4 million of our cash.

        In August 2000, we entered into a synthetic lease agreement for the land
and facilities of our corporate headquarters, including all improvements related
to this property for an aggregate purchase price of $114 million. The agreement
was assigned to a third party lessor under the terms of a lease finance
structure. This structure also required the creation and maintenance of a cash
collateral account that limits the liquidity of $119.6 million of our cash.

        Our capital requirements depend on numerous factors, including market
acceptance of our products, the resources we devote to developing, marketing,
selling and supporting our products, the timing and extent of establishing
international operations, the extent and timing of investments, acquisition
costs, and other factors. Management believes that we have adequate cash
resources to fund operations for the foreseeable future.

FACTORS AFFECTING OPERATING RESULTS

        Interested persons should carefully consider the risks described below
in evaluating us. Additional risks and uncertainties not presently known to us
or that we currently consider immaterial may also impair our business
operations. If any of the following risks actually occur, our business,
financial condition or results of operations could be materially adversely
affected. In that case, the trading price of our Common Stock could decline.

OUR FUTURE GROWTH DEPENDS ON THE COMMERCIAL SUCCESS OF EACH OF OUR NETWORK
PRODUCTS AND OUR ABILITY TO LEVERAGE THESE TECHNOLOGIES TO DEVELOP NEW PRODUCTS
FOR THE EMERGING CONTENT NETWORKING MARKET.

        Our future growth substantially depends on the commercial success of our
Traffic Server network cache product, our Content Delivery Suite and our Media
Products. The markets for these products are in their early stages and we cannot
be sure that our target customers will widely adopt and deploy these
technologies throughout their networks. Demand for our products has fluctuated
significantly over the past two quarters as our core telecommunications and
network service provider customers and prospects have deferred and downsized
purchases and as the Content Delivery Network market has declined. We expect
this business environment to continue for the foreseeable future, and expect we
will need to continue to modify and enhance our products for multiple market
segments including in particular the enterprise and wireless networks. In this
connection, we recently initiated a project to modify, enhance and integrate our
caching, content distribution, streaming media and management technologies into
a suite of new products for the emerging content networking market. We are
targeting these new products primarily toward the enterprise marketplace. We
cannot be sure we will be successful in our development efforts or that our
products will gain market traction. Our future success substantially depends on
our ability to generate substantial and sustained revenues from our existing
Network Products and new content networking products in each of our market
segments and substantially increase the number of new and repeat customer
transactions.

DEMAND FOR OUR STREAMING MEDIA PRODUCTS IS DEPENDENT ON INCREASING AVAILABILITY
OF MEDIA CONTENT ON NETWORKS, THE BUILD OUT OF BROADBAND CAPABILITIES AND THE
ESTABLISHMENT OF PROFITABLE BUSINESS MODELS BY OUR CUSTOMERS, AMONG OTHER
FACTORS, ALL WHICH ARE OUTSIDE OF OUR CONTROL.

        The streaming media market is in its early stages and the amount of
appealing streaming content currently available is relatively limited. The
amount of streaming content available over public networks and enterprise
networks must increase substantially for our potential customers to justify
their purchase of our Media Products. Our Media Products are complex which may
limit their market acceptance and deployment. Growth in sales of our Media
Products in the service provider space depends on the increased availability and
usage of broadband access to the Internet. We cannot be sure that broadband
access to the Internet will grow fast enough or be utilized by enough persons to
create a sustainable marketplace for our Media Products. In addition, successful
business models for the delivery of streaming media content must be developed in
order for there to be sufficient demand for our Media Products in the service
provider marketplace. As we focus on the enterprise content networking market,
enterprises



                                       16
<PAGE>   18

building out their content networks must realize the value of live and on-demand
CEO webcasts, training seminars and other media applications in order for our
Media Products to be widely adopted. There can be no assurances that enterprises
will adopt streaming or on-demand media solutions for the operation of their
business.

OUR BUSINESS WOULD BE HARMED IF CUSTOMERS CHOOSE NOT TO USE OR PROMOTE OUR WEB
SEARCH SERVICES.

        Revenues from our Web search services result primarily from the number
of end-user searches processed by our Search Engine. Our agreements with
customers do not require them to direct end-users to our search services or to
use our search services exclusively or at all. Accordingly, revenues from search
services are highly dependent upon the willingness of customers to promote and
use the search services we provide, the ability of our customers to attract
end-users to their online services, the volume of end-user searches that are
processed by our Search Engine, and the ability of customers to monetize traffic
from their Web site search pages. Some of our customers have selected competing
search and directory services to operate in combination with our services, which
has reduced the number of queries available for us to serve and may erode future
revenue growth opportunities. The technological barriers for customers to
implement additional services or to replace our services are not substantial.
The market for Internet search is maturing and many smaller and medium size
portals are not profitable, suffer from declining revenue growth and have
limited access to capital to fund operational needs. As a result, many of our
smaller search services customers have elected not to renew their contracts and
our market opportunity from portals has become more limited. In order for us to
continue to increase revenues from our Search Engine business at historical
rates, we will need to continue to sign up an increasing number of new
customers, develop and deliver new search services, products and features to
existing and future customers, and establish deeper strategic relationships with
our customers.

WE MAY BE UNABLE TO SUSTAIN THE GROWTH OF OUR ENTERPRISE SEARCH PRODUCTS.

        Much of the growth of our Portal Services revenue is dependent upon the
continued growth of sales of our search software products to enterprises. Such
revenues are derived from software license fees and fees derived from support
and upgrades of such software. A number of factors could cause sales of our
enterprise search products to slow or decline. We face intense competition from
companies with more experience in the marketplace and who offer a broad set of
products and services to our target customers. In addition, these companies have
deeper strategic relationships and have established well developed channels to
sell and distribute their products and services. We historically have sold our
enterprise search products primarily at the departmental level within large
enterprises, through a direct sales force. To expand our market opportunities,
we will need to enhance our product and service offerings, effectively market
our products as enterprise wide search and navigation solutions, and develop
channel and licensing programs to extend our reach.

THE MARKETS IN WHICH WE OPERATE ARE HIGHLY COMPETITIVE AND RAPIDLY CHANGING AND
WE MAY BE UNABLE TO COMPETE SUCCESSFULLY AGAINST NEW ENTRANTS AND ESTABLISHED
COMPANIES WITH GREATER RESOURCES.

        We compete in markets that are new, intensely competitive, highly
fragmented and rapidly changing. We have experienced and expect to continue to
experience increased competition from current and potential competitors in each
of our market segments, many of which are bringing new solutions to market,
establishing technology alliances and OEM relationships with larger companies,
and focusing on specific segments of our target markets. In some cases, our
competitors are implementing aggressive pricing and other strategies that are
focused in the short term on building customer bases, name recognition in the
market and capturing market share. This may cause some price pressure on our
products and services in the future.

        We directly compete against several companies in the network cache,
content delivery and streaming media markets, including Akamai, CacheFlow, Cisco
Systems, InfoLibria, Microsoft, Netscape, Network Appliance, Novell,
RealNetworks, Spyglass and Volera. We are aware of numerous other major software
developers as well as smaller entrepreneurial companies that are focusing
significant resources on developing and marketing products and services that
will compete with our Network Products. We also believe that we may face
competition from other providers of competing solutions to network
infrastructure problems, including networking hardware and software
manufacturers, traditional hardware manufacturers, telecommunications providers,
cable TV/communications providers, software database companies, and large
diversified software and technology companies. Many of these companies provide
or have announced their intentions to provide a range of software and hardware
products based on Internet protocols and to compete in the broad
Internet/intranet software market as well as in specific market segments in
which we compete.



                                       17
<PAGE>   19

        We compete with a number of companies to provide Internet search and
directory services and technology. In the Web services marketplace, our primary
competitors include a variety of established and newer companies, including
AltaVista, Ask Jeeves, FAST Search and Transfer, Google, Goto.com, Infoseek,
LookSmart, Netscape Open Directory and Northern Light. These companies and other
competitors have focused on search result relevance, database size metrics and
ease of use to differentiate their services. In the search software market, our
primary competitors include AltaVista, Autonomy, Dataware, Excalibur, Fulcrum,
Lotus, Microsoft and Verity. We also indirectly compete in this market with
Oracle and other database vendors that offer information search and retrieval
capabilities with their core database products, and Web platform companies such
as Netscape. In addition, several large media and other Internet-based companies
have made investments in, or acquired, Internet search engine companies and may
seek to develop or customize their products and services to deliver to our
target customers.

        Our competitors may be able to respond more quickly to new or emerging
technologies and changes in customer requirements than we can. In addition, our
current and potential competitors may bundle their products with other software
or hardware, including operating systems and browsers, in a manner that may
discourage users from purchasing products offered by us. Also, current and
potential competitors have or may have greater name recognition, more extensive
customer bases and access to proprietary content. Increased competition could
result in price reductions, fewer customer orders, fewer search queries served,
reduced gross margins and loss of market share.

THE INTERNET INFRASTRUCTURE MARKET IS RAPIDLY CHANGING AND WE MUST DEVELOP,
ACQUIRE, AND INTRODUCE NEW PRODUCTS AND TECHNOLOGIES TO GROW OUR REVENUES AND
REMAIN COMPETITIVE.

        The Internet infrastructure market is characterized by rapid
technological change, frequent new product introductions, changes in customer
requirements and evolving industry standards. The introduction of products
embodying new technologies and the emergence of new industry standards could
render our existing products obsolete. Our future success and revenue growth
will depend upon our ability to develop, acquire and introduce a variety of new
products and product enhancements to address the increasingly sophisticated
needs of our customers, particularly in the content networking, wireless, and
enterprise markets. We have experienced delays in releasing new products and
product enhancements and may experience similar delays in the future. Material
delays in introducing new products and enhancements may cause customers to
forego purchases of our products or to purchase those of our competitors.

OUR QUARTERLY OPERATING RESULTS MAY FLUCTUATE SIGNIFICANTLY, AND THESE
FLUCTUATIONS MAY CAUSE OUR STOCK PRICE TO FALL.

        We expect that a significant portion of our future revenues will come
from licenses of the Traffic Server network cache platform, Content Delivery
Suite software solution, Media Products, and our enterprise search products. We
further expect that these revenues will come from licenses to a relatively small
number of customers. The volume and timing of orders are difficult to predict
because the markets for Traffic Server, Content Delivery Suite, Media Products,
and our enterprise search products are in their early stages, the sales cycle
varies substantially from customer to customer. In addition, many customers in
our target markets are scrutinizing their capital spending budgets in light of
the slowing economy, and other customers have limited access to capital to fund
operational needs. These companies are shifting their buying patterns as a
result, taking a more cautious and measured approach to their network build-out
plans. Historically, customer orders during a quarter have consisted of a small
number of multi-million dollar deals and several other smaller orders ranging
from $0.1 million to $0.5 million. The cancellation, deferral or reduction of
even a small number of licenses of Traffic Server, Content Delivery Suite or
Media Products would reduce our expected revenues, which would adversely affect
our quarterly financial performance. To the extent significant sales occur
earlier than expected, operating results for later quarters may not compare
favorably with operating results from earlier quarters.

        Our operating expenses are largely based on anticipated revenue trends
and a high percentage of our expenses are fixed in the short term. Despite our
recent workforce reduction, we expect to continue to make significant
investments to develop and market products for the enterprise, wireless and
content networking markets, broaden our customer support capabilities, develop
new distribution channels, and fund greater levels of research and development.
A delay in generating or recognizing revenue for the reasons already discussed
or for any other reason could cause significant variations in our operating
results from quarter-to-quarter and could result in substantial operating
losses.



                                       18
<PAGE>   20

        Due to these factors, we believe that quarter-to-quarter comparisons of
our operating results are not a good indication of our future performance. It is
likely that in some future quarter, our operating results may be below the
expectations of public market analysts or investors, and the price of our Common
Stock may fall.

OUR FUTURE REVENUE GROWTH DEPENDS ON OUR ABILITY TO EXPAND OUR SALES,
DISTRIBUTION AND SUPPORT ORGANIZATIONS.

        We will need to expand our direct and indirect sales operations, both
domestically and internationally, in order to increase market awareness and
sales of our products. Our products and services require sophisticated sales
efforts targeted at several people within our prospective customers'
organizations. Competition for qualified sales personnel is intense, and we
might not be able to hire the kind and number of sales personnel we are
targeting.

        In addition, our future revenue growth is dependent upon establishing
and maintaining productive relationships with a variety of distribution
partners, including OEMs, resellers, systems integrators and joint marketing
partners. We seek to sign up distribution partners that have a substantial
amount of technical and marketing expertise. Even with this expertise, our
distribution partners generally require a significant amount of training and
support from us, and we anticipate that it will take several quarters before our
distribution partners will develop the expertise and skills necessary to
effectively sell our products. We cannot be sure that we will be successful in
signing up the desired distribution partners or that our distribution partners
will devote adequate resources or have the technical, marketing and sales
capabilities to sell our products. We may be adversely affected if our
distribution partners fail to ship products in a timely manner or according to
agreed upon schedules.

        Similarly, the complexity of our products and the difficulty of
installing them require highly trained customer service and support personnel.
We currently have a relatively small customer service and support organization
and will need to increase our staff to support new customers, new product lines,
the expanding needs of existing customers and the internationalization of our
business. Competition for customer service and support personnel is intense in
our industry due to the limited number of people available with the necessary
technical skills and understanding of the relevant industries including the
Internet, telecommunications and commerce.

THE GLOBAL WIRELESS INTERNET SPACE IS A NEW MARKET AND WE CANNOT BE CERTAIN THAT
OUR ENTRY INTO THIS MARKET WILL BE SUCCESSFUL.

        We have undertaken a broad initiative in the global wireless Internet
space. The market for new wireless Internet products and services is in an early
stage of development and is rapidly evolving. We have limited experience in the
wireless market and cannot be certain that the market will develop in such a
manner as to provide us with substantial revenue-generating opportunities.
Several companies are developing products and services targeted to the wireless
space, many of which are ahead of us in development and implementation. We
expect competition to be intense. To facilitate our entry into the wireless
space, we will need to modify our products and services, establish and manage
strategic alliances with a variety of companies including wireless operators,
content providers, hardware manufacturers and integrated service vendors, and
hire new management, technical sales and other personnel. In this connection, we
expect to incur material expenses across all expense categories for the next
several quarters. We cannot be certain that our entry into the wireless space
will be successful.

THE LOSS OF A KEY CUSTOMER COULD ADVERSELY AFFECT OUR REVENUES AND BE PERCEIVED
AS A LOSS OF MOMENTUM IN OUR BUSINESS.

        We have generated a substantial portion of our historical revenues from
a limited number of customers. We expect that a small number of customers will
continue to account for a substantial portion of revenues for the foreseeable
future. As a result, if we lose a major customer for any reason, including
non-renewal of a customer contract or a failure to meet performance
requirements, or in the case of our Search Engine business if there is a decline
in usage of any customer's search service, our revenues would be adversely
affected. Our potential customers and public market analysts or investors may
perceive any such loss as a loss of momentum in our business, which may
adversely affect future opportunities to sell our products and services and
cause our stock price to decline. We cannot be sure that customers that have
accounted for significant revenues in past periods, individually or as a group,
will continue to generate revenues in any future period.



                                       19
<PAGE>   21

IF WE ARE UNABLE TO MAINTAIN OUR RELATIONSHIPS WITH CUSTOMERS AND THE COMPANIES
THAT SUPPLY AND DISTRIBUTE OUR PRODUCTS, WE MAY HAVE DIFFICULTY SELLING OUR
PRODUCTS AND SERVICES.

        We believe that our success in penetrating our target markets depends in
part on our ability to develop and maintain strategic relationships with key
hardware and software vendors, Internet technology and service providers,
distribution partners and customers. We believe these relationships are
important in order to validate our technology, facilitate broad market
acceptance of our products, enhance our product and service offering, and expand
our sales, marketing and distribution capabilities. If we are unable to develop
these key relationships or maintain and enhance existing relationships,
particularly in the area of streaming audio and video and our Traffic Server
product, we may have difficulty selling our products and services.

        We have from time to time licensed components from others such as
reporting functions and security features and incorporated them into our
products and services. If these licensed components are not maintained, it could
impair the functionality of our products and services and require us to obtain
alternative products from other sources or to develop this software internally.
In either case, this could involve costs and delays as well as diversion of
engineering resources.

THE LEGAL ENVIRONMENT IN WHICH WE OPERATE IS UNCERTAIN AND CLAIMS AGAINST US
COULD CAUSE OUR BUSINESS TO SUFFER.

        Our products and services operate in part by making copies of material
available on the Internet and other networks and making this material available
to end-users from a central location or local systems. In addition, our Portal
Services technology systems collect end-user and transaction information, which
we use to deliver services to our customers and our customers use to deliver
services to their users. This creates the potential for claims to be made
against us (either directly or through contractual indemnification provisions
with customers) for defamation, negligence, copyright or trademark infringement,
personal injury, invasion of privacy or under other legal theories based on the
nature, content, copying, dissemination, collection or use of these materials.
These claims have been threatened against us from time to time and have been
brought, and sometimes successfully pressed, against online service providers.
It is also possible that if any information provided through any of our Portal
Services or facilitated by our Network Products contains errors, third parties
could make claims against us for losses incurred in reliance on this
information. Although we carry general liability insurance, our insurance may
not cover potential claims of this type or be adequate to protect us from all
liability that may be imposed.

INTERNET-RELATED LAWS COULD ADVERSELY AFFECT OUR BUSINESS.

        Laws and regulations that apply to communications and commerce over the
Internet are becoming more prevalent. The United States Congress has enacted
Internet laws regarding children's privacy, copyrights, taxation and the
transmission of sexually explicit material. The European Union has enacted its
own privacy regulations as well as legislation governing e-commerce, copyrights
and caching. The law of the Internet, however, remains largely unsettled, even
in areas where there has been some legislative action. It may take years to
determine whether and how existing laws such as those governing intellectual
property, privacy, libel and taxation apply to the Internet. In addition, the
growth and development of the market for online commerce may prompt calls for
more stringent consumer protection laws, both in the United States and abroad,
that may impose additional burdens on companies conducting business online. The
adoption, implementation or modification of laws and regulations relating to the
Internet, or interpretations of existing law, could adversely affect our
business.

WE HAVE CERTAIN CONTINUING OBLIGATIONS RELATED TO OUR RECENTLY DIVESTED COMMERCE
DIVISION THAT MAY ADVERSELY AFFECT OUR FUTURE FINANCIAL RESULTS.

        In connection with the sale of our Commerce Division, we assigned
certain contracts to the acquirer, e-centives, Inc. Should a claim originate out
of one these assigned contracts for a matter arising prior to the assignment, we
may be obligated to indemnify e-centives for such claim. Such indemnification
would involve expending management and financial resources to resolve the claim.
In addition, certain customer contracts related to the Commerce Division were
not assigned to e-centives. We are still obligated to provide the products and
services to the customers under these contracts. We expect to expend financial
and management resources to either fulfill or eliminate the obligations under
these contracts. We also may incur unforeseen expenses as we separate out and
transition certain information technology infrastructure, sales and support
methods and personnel, human resources and contract management functions.



                                       20
<PAGE>   22

ANY ACQUISITIONS WE MAKE COULD ADVERSELY AFFECT OUR OPERATIONS OR FINANCIAL
RESULTS.

        We have purchased five companies since September 1998 and may invest in
or acquire complementary companies, products and technologies in the future. If
we buy a company, we could have difficulty in assimilating that company's
personnel and operations and maintaining acceptable standards, controls,
procedures and policies. In addition, the key personnel of the acquired company
may decide not to work for us. Also, we could have difficulty in integrating the
acquired technology or products into our operations. There could be potential
unknown liabilities associated with the purchased company. These difficulties
could disrupt our ongoing business, distract our management and employees and
increase our expenses. Furthermore, we may have to incur debt or issue equity
securities to pay for any future acquisitions, the issuance of which could be
dilutive to our stockholders.

WE MAY NOT BE ABLE TO RECRUIT AND RETAIN THE PERSONNEL WE NEED TO SUCCEED.

        Our primary asset is the intellectual capabilities of our employees. We
are therefore dependent on recruiting and retaining a strong team of personnel
across all functional areas. Competition for these individuals is intense, and
we may not be able to attract or retain the highly qualified personnel necessary
for our success. Our employment relationships are generally at-will. If any of
our key employees were to leave us, we could face substantial difficulty in
hiring qualified successors and could experience a loss in productivity while
any such successor obtains the necessary training and experience. Many of our
key employees have reached or will soon reach the four-year anniversary of their
hiring date and will be fully vested in their initial stock option grants. While
our key employees are typically granted additional stock options to provide
additional incentive to remain with us, the initial option grant is typically
the largest and an employee may be more likely to leave us upon completion of
the vesting period for the initial option grant. In light of current market
conditions, we may undertake programs to retain our employees that may be viewed
as dilutive to our shareholders. We do not have key person life insurance
policies covering any of our employees other than our Chief Executive Officer.

OUR EFFORTS TO INCREASE OUR PRESENCE IN MARKETS OUTSIDE OF THE UNITED STATES MAY
BE UNSUCCESSFUL AND COULD RESULT IN LOSSES.

        We market and sell our products in the United States of and
internationally, principally Europe and Asia. Historically, the percentage of
sales to customers located outside of the United States has varied
substantially, reflecting the early stage build-out of our international
operations. We have limited experience in developing localized versions of our
products and marketing and distributing our products internationally. In
addition, other inherent risks may apply to international markets and
operations, including:

        -       the impact of recessions in economies outside the United States;

        -       greater difficulty in accounts receivable collection and longer
                collection periods;

        -       unexpected changes in regulatory requirements;

        -       difficulties and costs of staffing and managing foreign
                operations;

        -       potentially adverse tax consequences; and

        -       political and economic instability.

        We also have limited experience operating in foreign countries and
managing multiple offices with facilities and personnel in disparate locations.
We may not be able to manage our resources effectively, coordinate our efforts,
supervise our personnel or otherwise successfully manage our resources. The laws
and cultural requirements in foreign countries can vary significantly from those
in the United States. The inability to integrate our business in these
jurisdictions and to address cultural differences may adversely affect the
success of our international operations.

INTELLECTUAL PROPERTY CLAIMS AGAINST US COULD CAUSE OUR BUSINESS TO SUFFER.

        Substantial litigation regarding intellectual property rights exists in
the software industry. We expect that software products may be increasingly
vulnerable to third party infringement claims as the number of competitors in
our industry segments grows, the functionality of products in different industry
segments overlaps, and more business method patents are submitted to and issued
by patent authorities. We believe that many companies have filed or intend to
file patent applications covering aspects of their technology that they may
claim our technology



                                       21
<PAGE>   23

infringes. Some of these companies have sent copies of their patents to us for
informational purposes. We cannot be sure that these parties will not make a
claim of infringement against us with respect to our products and technology.
Any claims, with or without merit, could be time consuming to defend, result in
costly litigation, divert management's attention and resources, and could cause
product shipment delays or require us to reengineer our products or enter into
royalty or licensing agreements. Reengineering a particular product, however,
may not be possible or practical. Similarly, these royalty or licensing
agreements, if required, may not be available on acceptable terms, if at all.

ANTI-TAKEOVER PROVISIONS CONTAINED IN OUR CHARTER AND UNDER DELAWARE LAW COULD
IMPAIR A TAKEOVER ATTEMPT.

        We are subject to the provisions of Section 203 of the Delaware General
Corporation Law prohibiting, under some circumstances, publicly held Delaware
corporations from engaging in business combinations with some stockholders for a
specified period of time without the approval of the holders of substantially
all of our outstanding voting stock. Such provisions could delay or impede the
removal of incumbent directors and could make more difficult a merger, tender
offer or proxy contest involving us, even if such events could be beneficial, in
the short term, to the interests of the stockholders. In addition, such
provisions could limit the price that some investors might be willing to pay in
the future for shares of our Common Stock. These provisions, in addition to
provisions contained in our charter, may have the effect of deterring hostile
takeovers or delaying changes in our control or management.

OUR STOCK PRICE IS VOLATILE.

        The market price of our Common Stock has been and may continue to be
subject to wide fluctuations. Our stock price may fluctuate in response to a
number of events and factors, such as quarterly variations in operating results,
announcements of technological innovations or new products and media properties
by us or our competitors, announcements of technological alliances and
partnerships, changes in financial estimates and recommendations by securities
analysts, the operating and stock price performance of other companies that
investors may deem comparable, and news reports relating to trends in our
markets. In addition, the stock market in general, and the market prices for
Internet-related companies in particular, have experienced extreme volatility
that often has been unrelated to the operating performance of such companies.
These broad market and industry fluctuations may adversely affect the price of
our stock, regardless of our operating performance. In the past, companies that
have experienced volatility in the market price of their stock have been the
subjects of securities class action litigation. If we were the subject of
securities class action litigation, it could result in substantial costs and a
diversion of management's attention and resources.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


        We do not use derivative financial instruments to hedge interest rate
and foreign currency exposure. We limit our interest rate risks by placing our
marketable securities investments with high quality issuers principally in
United States government and corporate debt securities with terms of less than
two years. We do not expect any material losses from our marketable securities
investments and believe that our interest rate exposure is modest. We sell our
products and services in the United States and abroad. Historically, the
percentage of sales to customers located outside the United States has varied
substantially. We currently transact substantially all of our revenues, whether
domestic or abroad, in United States currency. Our expenditures and consolidated
financial results could be affected by a change in the exchange rate of the U.S.
Dollar versus a foreign currency.



                                       22
<PAGE>   24

                           PART II. OTHER INFORMATION

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS

        At the Annual Meeting of Stockholders of the Company held on March 13,
2001, the following proposals were adopted by the margins indicated below. There
were 127,512,731 shares of Common Stock entitled to vote at the meeting and a
total of 83,861,730 shares were represented at the meeting.

1. To elect a Board of Directors to hold office until their successors are
elected and qualified.

<TABLE>
<CAPTION>
                                                NUMBER OF SHARES
                                           FOR                  WITHHELD
<S>                                     <C>                    <C>
David C. Peterschmidt                   75,888,635             7,973,095
Eric A. Brewer                          80,297,988             3,563,742
Frank Gill                              80,290,558             3,571,172
Fredric W. Harman                       80,292,460             3,569,270
John A. Porter                          80,288,340             3,573,390
Alan F. Shugart                         80,272,957             3,588,773
</TABLE>

2. To ratify the appointment of PricewaterhouseCoopers LLP as our independent
accountants for fiscal 2001.

<TABLE>
<CAPTION>
                                               NUMBER OF SHARES
<S>                                            <C>
For                                                83,710,095
Against                                                85,824
Abstain                                                65,811
Broker Non-Vote                                            --
</TABLE>



                                       23
<PAGE>   25

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)   EXHIBITS


<TABLE>
<CAPTION>
EXHIBIT
NUMBER          DESCRIPTION
------          -----------
<S>             <C>
2.1 (2)         Agreement and Plan of Reorganization dated August 31, 1998 by
                and among Inktomi, IC Merger Corp. and C2B Technologies Inc.

2.2 (5)         Agreement and Plan of Reorganization dated April 21, 1999 by and
                among Inktomi, IC Acquisition Corp. and Impulse! Buy Network,
                Inc.

2.3 (7)         Agreement and Plan of Reorganization dated September 15, 1999 by
                and among Inktomi, WS Acquisition Corp. and WebSpective
                Software, Inc.

2.4 (12)*       Stock Purchase Agreement dated June 7, 2000 by and between
                Infoseek Corporation and Inktomi.

2.5 (16)        Agreement and Plan of Reorganization dated September 12, 2000 by
                and among Inktomi, FastForward Networks, Inc. and River Kwai
                Acquisition Corporation.

2.6 (18)        Asset Purchase Agreement dated as of December 31, 2000 by and
                between Inktomi and Adero, Inc.

2.7 (20)        Asset Purchase Agreement between Inktomi and e-centives, Inc.
                dated January 18, 2001 and the amendments thereto.

3.2 (3)         Amended and Restated Certificate of Incorporation of Inktomi.

3.2a (6)        Amendment to Amended and Restated Certificate of Incorporation
                of Inktomi.

3.2b (13)       Amendment to Amended and Restated Certificate of Incorporation
                of Inktomi.

3.4 (3)         Bylaws of Inktomi.

4.1 (3)         Specimen Common Stock Certificate.

10.1 (3)        Form of Indemnification Agreement between Inktomi and each of
                its directors and officers.

10.2 (17)       1998 Stock Plan and form of agreement thereunder.

10.3 (3)        1998 Employee Stock Purchase Plan and form of agreements
                thereunder.

10.4 (3)        1996 Equity Incentive Plan and form of agreement thereunder.

10.5 (3)        Fifth Amended and Restated Investors' Rights Agreement dated as
                February 13, 1998 among Inktomi and certain of its security
                holders named therein.

10.6 (3)        Executive Employment Agreement dated as of July 1, 1996 between
                Inktomi and David C. Peterschmidt.

10.7 (10)       Agreement of Sublease dated July 1, 1998 by and between Designs,
                Inc. and Atreve Software, Inc.

10.8 (11)       First Amended and Restated Lease Agreement between Parkside
                Towers Co-Tenancy and Inktomi.

10.9 (11)       Employee Loan Agreement dated March 2, 2000 between Kirk D.
                Bowman and Inktomi.

10.10 (14)      Ultraseek Stock Option Plan and form of agreement thereunder.

10.11 (15)      Purchase and Sale Agreement dated June 30, 2000 by and between
                WHFST Real Estate Limited Partnership and Inktomi.

10.12 (15)      First Amendment to Purchase and Sale Agreement dated as of July
                14, 2000 by and between WHFST Real Estate Limited Partnership
                and Inktomi.

10.13 (13)      Preferred Stock Rights Agreement dated as of August 10, 2000
                between Inktomi and Wells Fargo Shareowners Services.

10.14           Reserved for future use.

10.15           Reserved for future use.

10.16 (1)       Office Lease dated October 9, 1998 between Inktomi and WHFST
                Real Estate Limited Partnership, a Delaware limited partnership.

10.17 (4)       C2B Technologies Inc. (formerly BeyondNews, Inc.) 1997 Stock
                Plan and form of agreement thereunder.
</TABLE>



                                       24
<PAGE>   26

<TABLE>
<CAPTION>
EXHIBIT
NUMBER          DESCRIPTION
------          -----------
<S>             <C>
10.18 (2)       Registration Rights Agreement dated September 25, 1998 between
                Inktomi and former stockholders of C2B Technologies Inc.
                (included in Exhibit 2.1).

10.19 (17)      1998 Nonstatutory Stock Option Plan and form of agreement
                thereunder.

10.20 (5)       Declaration of Registration Rights dated April 30, 1999 for the
                benefit of former Impulse! Buy Network, Inc. stockholders
                (included in Exhibit 2.2).

10.21 (1)       Amended and Restated Loan and Security agreement dated as of
                September 2, 1998 between Inktomi and Silicon Valley Bank.

10.22 (6)       Amendment dated January 28, 1999 to Amended and Restated Loan
                and Security Agreement dated as of September 2, 1998 between
                Inktomi and Silicon Valley Bank.

10.23 (8)       Impulse! Buy Network, Inc. 1997 Stock Plan and form of agreement
                thereunder.

10.24 (9)       WebSpective Software, Inc. (formerly Atreve Software, Inc.) 1997
                Stock Option Plan and form of agreement thereunder.

10.25 (7)       Declaration of Registration Rights dated October 1, 1999 for the
                benefit of former WebSpective Software, Inc. stockholders
                (included in Exhibit 2.3).

10.26 (17)      Amendment to 1996 Equity Incentive Plan.

10.27 (17)      Amendment to C2B Technologies 1997 Stock Plan

10.28 (17)      Amendment to Impulse! Buy Network, Inc. 1997 Stock Plan.

10.29 (17)      Amendment to WebSpective Software, Inc. 1997 Stock Plan.

10.30 (16)      FastForward Networks, Inc. 1998 Stock Plan and form of agreement
                thereunder.

10.31 (19)      Amendment to the Ultraseek Stock Option Plan.

10.32 (19)      Amendment to the FastForward Networks, Inc. 1998 Stock Plan.

10.33           Participation Agreement dated August 24, 2000 between Inktomi,
                Wilmington Trust Company, Wilmington Trust FSB, Deutsche Bank
                AG, New York, Deutsche Bank AG, New York and/or Cayman Islands
                Branch and Deutsche Bank Securities, Inc. and the amendment
                thereto dated May 7, 2001.

10.34           Employee Loan Agreement dated April 30, 2001 between Inktomi and
                Edward Hally.
</TABLE>


---------------

   (1)      Incorporated by reference from Inktomi's Registration Statement on
            Form S-1 (Reg. No. 333-66661), as amended.

   (2)      Incorporated by reference from Inktomi's Current Report on Form 8-K
            filed with the Commission on October 9, 1998, as amended November 2,
            1998.

   (3)      Incorporated by reference from Inktomi's Registration Statement on
            Form S-1 (Reg. No. 333-50247), as amended.

   (4)      Incorporated by reference from Inktomi's Registration Statement on
            Form S-8 (Reg. No. 333-71037).

   (5)      Incorporated by reference from Inktomi's Current Report on Form 8-K
            filed with the Commission on May 13, 1999.

   (6)      Incorporated by reference from Inktomi's Quarterly Report on Form
            10-Q filed with the Commission on May 17, 1999.

   (7)      Incorporated by reference from Inktomi's Current Report on Form 8-K
            filed with the Commission on October 15, 1999, as amended November
            5, 1999.

   (8)      Incorporated by reference from Inktomi's Registration Statement on
            Form S-8 (Reg. No. 333-80195).

   (9)      Incorporated by reference from Inktomi's Registration Statement on
            Form S-8 (Reg. No. 333-89581).

   (10)     Incorporated by reference from Inktomi's Quarterly Report on Form
            10-Q filed with the Commission on February 14, 2000.

   (11)     Incorporated by reference from Inktomi's Quarterly Report on Form
            10-Q filed with the Commission on May 15, 2000.

   (12)     Incorporated by reference from Inktomi's Current Report on Form 8-K
            filed with the Commission on August 1, 2000.

   (13)     Incorporated by reference from Inktomi's Current Report on Form 8-A
            filed with the Commission on August 11, 2000.

   (14)     Incorporated by reference from Inktomi's Registration Statement on
            Form S-8 (Reg. No. 333-42102).

   (15)     Incorporated by reference from Inktomi's Quarterly Report on Form
            10-Q filed with the Commission on August 14, 2000.

   (16)     Incorporated by reference from Inktomi's Registration Statement on
            Form S-8 (Reg. No. 333-49874).



                                       25
<PAGE>   27

   (17)     Incorporated by reference from Inktomi's Annual Report on Form
            10-K/A filed with the Commission on January 2, 2001.

   (18)     Incorporated by reference from Inktomi's Current Report on Form 8-K
            filed with the Commission on January 12, 2001.

   (19)     Incorporated by reference from Inktomi's Quarterly Report on Form
            10-Q filed with the Commission on February 14, 2001.

   (20)     Incorporated by reference from Inktomi's Current Report on Form 8-K
            filed with the Commission on April 12, 2001.

   *        Treatment has been requested for certain portions omitted from this
            Exhibit pursuant to Rule 24b-2 under the Securities Exchange Act of
            1934, as amended. Confidential portions of this Exhibit have been
            separately filed with the Securities and Exchange Commission.



(b) REPORTS ON FORM 8-K

        On January 8, 2001, the Company filed a report on Form 8-K/A, which
amends the Form 8-K previously filed on November 8, 2000. The original Form 8-K
announced the completion of our acquisition of FastForward and included its
press release regarding such transaction therein. The Form 8-K/A included
supplementary consolidated financial statements for the fiscal years ended
September 30, 2000 and 1999 and the three years ended September 30, 2000 and the
accompanying supplementary notes which reflect our financial position and the
results of operations as if FastForward, which was accounted for as pooling of
interests, as if it was our wholly-owned subsidiary since inception.


        We filed a Current Report on Form 8-K dated January 12, 2001 to report
under Item 2 thereof the acquisition of certain assets of Adero, Inc. We filed
an amendment dated March 13, 2001, to this Current Report on Form 8-K to include
the required Supplementary Consolidated Financial Statements required under the
report.


                                    SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by
undersigned, thereunto duly authorized.


                                            Inktomi Corporation


Date: May 14, 2001                          By: /s/  JERRY M. KENNELLY
                                               ---------------------------------
                                               Jerry M. Kennelly,
                                               Executive Vice President and
                                               Chief Financial Officer
                                               (duly authorized officer and
                                               principal financial officer)



                                       26
<PAGE>   28

                                INDEX TO EXHIBITS

(a)   EXHIBITS

<TABLE>
<CAPTION>
EXHIBIT
NUMBER          DESCRIPTION
------          -----------
<S>             <C>
2.1 (2)         Agreement and Plan of Reorganization dated August 31, 1998 by
                and among Inktomi, IC Merger Corp. and C2B Technologies Inc.

2.2 (5)         Agreement and Plan of Reorganization dated April 21, 1999 by and
                among Inktomi, IC Acquisition Corp. and Impulse! Buy Network,
                Inc.

2.3 (7)         Agreement and Plan of Reorganization dated September 15, 1999 by
                and among Inktomi, WS Acquisition Corp. and WebSpective
                Software, Inc.

2.4 (12)*       Stock Purchase Agreement dated June 7, 2000 by and between
                Infoseek Corporation and Inktomi.

2.5 (16)        Agreement and Plan of Reorganization dated September 12, 2000 by
                and among Inktomi, FastForward Networks, Inc. and River Kwai
                Acquisition Corporation.

2.6 (18)        Asset Purchase Agreement dated as of December 31, 2000 by and
                between Inktomi and Adero, Inc.

2.7 (20)        Asset Purchase Agreement between Inktomi and e-centives, Inc.
                dated January 18, 2001 and the amendments thereto.

3.2 (3)         Amended and Restated Certificate of Incorporation of Inktomi.

3.2a (6)        Amendment to Amended and Restated Certificate of Incorporation
                of Inktomi.

3.2b (13)       Amendment to Amended and Restated Certificate of Incorporation
                of Inktomi.

3.4 (3)         Bylaws of Inktomi.

4.1 (3)         Specimen Common Stock Certificate.

10.1 (3)        Form of Indemnification Agreement between Inktomi and each of
                its directors and officers.

10.2 (17)       1998 Stock Plan and form of agreement thereunder.

10.3 (3)        1998 Employee Stock Purchase Plan and form of agreements
                thereunder.

10.4 (3)        1996 Equity Incentive Plan and form of agreement thereunder.

10.5 (3)        Fifth Amended and Restated Investors' Rights Agreement dated as
                February 13, 1998 among Inktomi and certain of its security
                holders named therein.

10.6 (3)        Executive Employment Agreement dated as of July 1, 1996 between
                Inktomi and David C. Peterschmidt.

10.7 (10)       Agreement of Sublease dated July 1, 1998 by and between Designs,
                Inc. and Atreve Software, Inc.

10.8 (11)       First Amended and Restated Lease Agreement between Parkside
                Towers Co-Tenancy and Inktomi.

10.9 (11)       Employee Loan Agreement dated March 2, 2000 between Kirk D.
                Bowman and Inktomi.

10.10 (14)      Ultraseek Stock Option Plan and form of agreement thereunder.

10.11 (15)      Purchase and Sale Agreement dated June 30, 2000 by and between
                WHFST Real Estate Limited Partnership and Inktomi.

10.12 (15)      First Amendment to Purchase and Sale Agreement dated as of July
                14, 2000 by and between WHFST Real Estate Limited Partnership
                and Inktomi.

10.13 (13)      Preferred Stock Rights Agreement dated as of August 10, 2000
                between Inktomi and Wells Fargo Shareowners Services.

10.14           Reserved for future use.

10.15           Reserved for future use.

10.16 (1)       Office Lease dated October 9, 1998 between Inktomi and WHFST
                Real Estate Limited Partnership, a Delaware limited partnership.

10.17 (4)       C2B Technologies Inc. (formerly BeyondNews, Inc.) 1997 Stock
                Plan and form of agreement thereunder.
</TABLE>



                                       27
<PAGE>   29

<TABLE>
<CAPTION>
EXHIBIT
NUMBER          DESCRIPTION
------          -----------
<S>             <C>
10.18 (2)       Registration Rights Agreement dated September 25, 1998 between
                Inktomi and former stockholders of C2B Technologies Inc.
                (included in Exhibit 2.1).

10.19 (17)      1998 Nonstatutory Stock Option Plan and form of agreement
                thereunder.

10.20 (5)       Declaration of Registration Rights dated April 30, 1999 for the
                benefit of former Impulse! Buy Network, Inc. stockholders
                (included in Exhibit 2.2).

10.21 (1)       Amended and Restated Loan and Security agreement dated as of
                September 2, 1998 between Inktomi and Silicon Valley Bank.

10.22 (6)       Amendment dated January 28, 1999 to Amended and Restated Loan
                and Security Agreement dated as of September 2, 1998 between
                Inktomi and Silicon Valley Bank.

10.23 (8)       Impulse! Buy Network, Inc. 1997 Stock Plan and form of agreement
                thereunder.

10.24 (9)       WebSpective Software, Inc. (formerly Atreve Software, Inc.) 1997
                Stock Option Plan and form of agreement thereunder.

10.25 (7)       Declaration of Registration Rights dated October 1, 1999 for the
                benefit of former WebSpective Software, Inc. stockholders
                (included in Exhibit 2.3).

10.26 (17)      Amendment to 1996 Equity Incentive Plan.

10.27 (17)      Amendment to C2B Technologies 1997 Stock Plan

10.28 (17)      Amendment to Impulse! Buy Network, Inc. 1997 Stock Plan.

10.29 (17)      Amendment to WebSpective Software, Inc. 1997 Stock Plan.

10.30 (16)      FastForward Networks, Inc. 1998 Stock Plan and form of agreement
                thereunder.

10.31 (19)      Amendment to the Ultraseek Stock Option Plan.

10.32 (19)      Amendment to the FastForward Networks, Inc. 1998 Stock Plan.

10.33           Participation Agreement dated August 24, 2000 between Inktomi,
                Wilmington Trust Company, Wilmington Trust FSB, Deutsche Bank
                AG, New York, Deutsche Bank AG, New York and/or Cayman Islands
                Branch and Deutsche Bank Securities, Inc. and the amendment
                thereto dated May 7, 2001.

10.34           Employee Loan Agreement dated April 30, 2001 between Inktomi and
                Edward Hally.
</TABLE>

---------------

   (1)      Incorporated by reference from Inktomi's Registration Statement on
            Form S-1 (Reg. No. 333-66661), as amended.

   (2)      Incorporated by reference from Inktomi's Current Report on Form 8-K
            filed with the Commission on October 9, 1998, as amended November 2,
            1998.

   (3)      Incorporated by reference from Inktomi's Registration Statement on
            Form S-1 (Reg. No. 333-50247), as amended.

   (4)      Incorporated by reference from Inktomi's Registration Statement on
            Form S-8 (Reg. No. 333-71037).

   (5)      Incorporated by reference from Inktomi's Current Report on Form 8-K
            filed with the Commission on May 13, 1999.

   (6)      Incorporated by reference from Inktomi's Quarterly Report on Form
            10-Q filed with the Commission on May 17, 1999.

   (7)      Incorporated by reference from Inktomi's Current Report on Form 8-K
            filed with the Commission on October 15, 1999, as amended November
            5, 1999.

   (8)      Incorporated by reference from Inktomi's Registration Statement on
            Form S-8 (Reg. No. 333-80195).

   (9)      Incorporated by reference from Inktomi's Registration Statement on
            Form S-8 (Reg. No. 333-89581).

   (10)     Incorporated by reference from Inktomi's Quarterly Report on Form
            10-Q filed with the Commission on February 14, 2000.

   (11)     Incorporated by reference from Inktomi's Quarterly Report on Form
            10-Q filed with the Commission on May 15, 2000.

   (12)     Incorporated by reference from Inktomi's Current Report on Form 8-K
            filed with the Commission on August 1, 2000.

   (13)     Incorporated by reference from Inktomi's Current Report on Form 8-A
            filed with the Commission on August 11, 2000.

   (14)     Incorporated by reference from Inktomi's Registration Statement on
            Form S-8 (Reg. No. 333-42102).

   (15)     Incorporated by reference from Inktomi's Quarterly Report on Form
            10-Q filed with the Commission on August 14, 2000.

   (16)     Incorporated by reference from Inktomi's Registration Statement on
            Form S-8 (Reg. No. 333-49874).



                                       28
<PAGE>   30

   (17)     Incorporated by reference from Inktomi's Annual Report on Form
            10-K/A filed with the Commission on January 2, 2001.

   (18)     Incorporated by reference from Inktomi's Current Report on Form 8-K
            filed with the Commission on January 12, 2001.

   (19)     Incorporated by reference from Inktomi's Quarterly Report on Form
            10-Q filed with the Commission on February 14, 2001.

   (20)     Incorporated by reference from Inktomi's Current Report on Form 8-K
            filed with the Commission on April 12, 2001.

   *        Treatment has been requested for certain portions omitted from this
            Exhibit pursuant to Rule 24b-2 under the Securities Exchange Act of
            1934, as amended. Confidential portions of this Exhibit have been
            separately filed with the Securities and Exchange Commission.



                                       29