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



FORM 10-Q
|----------------------------------------------------------------------------------------------------------------------------------------------

|[X] |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------

|Commission File Number 0-24339



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)


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



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 as of April 30, 2000 was 110,431,393.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|INKTOMI CORPORATION


FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000



TABLE OF CONTENTS
|--------------------------------------------------------------------------------------------------

|                                                                        | Page
|----------------------------------------------------------------------- | ----
|Part I Financial Information:                                           |     
|Item 1. Financial Statements (Unaudited)                                |     
|a) Condensed Consolidated Statements of Operation for the three and six |     
|months ended March 31, 2000 and 1999                                    |     
|b) Condensed Consolidated Balance Sheets as of March 31, 2000 and       |     
|September 30, 1999                                                      |     
|c) Condensed Consolidated Statements of Cash Flows for the six months   |     
|ended March 31, 2000 and 1999                                           |     
|d) Notes to Unaudited Condensed Consolidated Financial Statements       |     
|Item 2. Management's Discussion and Analysis of Financial               |     
|Condition and Results of Operations                                     |     
|                                                                       
|Part II Other Information:                                              |     
|Item 4. Submission of Matters to a Vote of Stockholders                 |     
|Item 6. Exhibits and Reports on Form 8-K                                |     
|                                                                       
|Signature                                                               |     

|This report on Form
10-Q 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. 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 rapid expansion of our business,
including the expansion of our network products and portal services, our
ability to develop multiple applications, our planned introduction of new
products and services, the possibility of acquiring complementary businesses,
products, services and technologies and our development of relationships with
providers of leading Internet technologies. Although we believe that 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, including under the heading "Factors
Affecting Operating Results" contained in Item 2, "Management's Discussion and
Analysis of Financial Condition and Results of Operations." 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.


Inktomi was 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.



1
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Part I. Financial Information





Item 1. Financial Statements


Inktomi Corporation 
Condensed Consolidated Statements of Operation
(In thousands, except per share data) (Unaudited)
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                    | For the ThreeMonths EndedMarch 31, | For the SixMonths EndedMarch 31,
|----------------------------------- | ---------------------------------- | --------------------------------
|
|Revenues                            |                                    |                                 
|Network products                    |                                    | $   30,792                      
|Portal services                     |                                    | 16,477                          
|                                   
|Total revenues                      |                                    | 47,269                          
|Operating expenses                  |                                   
|Cost of revenues                    |                                    | 6,855                           
|Sales and marketing                 |                                    | 27,357                          
|Research and development            |                                    | 12,511                          
|General and administrative          |                                    | 3,275                           
|Acquisition-related costs           |                                    |                                
|                                   
|Total operating expenses            |                                    | 49,998                          
|                                   
|Operating loss                      |                                    | (2,729                          
|Other income, net                   |                                    | 3,740                           
|                                   
|Net income (loss)                   |                                    | $     1,011                     
|                                   
|Earnings per share                  |                                   
|Basic net income (loss) per share   |                                    | $       0.01                    
|                                   
|Diluted net income (loss) per share |                                    | $       0.01                    
|                                   
|Shares outstanding                  |                                   
|Shares used in calculating basic    |                                   
|net income (loss) per share         |                                    | 109,075                         
|                                   
|Shares used in calculating diluted  |                                   
|net income (loss) per share         |                                    | 122,457                         
|                                   

|See Notes to the Unaudited Condensed Consolidated
Financial Statements
2
|------------------------------------------------------------------------

|Inktomi Corporation Condensed Consolidated Balance Sheets 
(In thousands, except per share data)
|------------------------------------------------------------------------------------------------

|                                                | March 31, 2000 | September 30, 1999
|----------------------------------------------- | -------------- | ------------------
|
|Assets                                          |                |                   
|Current assets                                  |               
|Cash and cash equivalents                       |                | $ 101,170         
|Short-term investments                          |                | 168,158           
|                                               
|Total cash, cash equivalents and                |               
|short-term investments                          |                | 269,328           
|Accounts receivable, net                        |                | 33,555            
|Prepaid expenses and other current assets       |                | 6,521             
|                                               
|Total current assets                            |                | 309,404           
|Investments in equity securities                |                | 175,607           
|Property and equipment, net                     |                | 64,928            
|Other assets                                    |                | 5,250             
|                                               
|Total assets                                    |                | $ 555,189         
|                                               
|Liabilities and Stockholders Equity            |               
|Current liabilities                             |               
|Current portion of notes payable                |                | $     2,966       
|Current portion of capital lease obligations    |                | 3,267             
|Accounts payable                                |                | 6,353             
|Accrued liabilities                             |                | 24,111            
|Deferred revenue                                |                | 29,473            
|                                               
|Total current liabilities                       |                | 66,170            
|Notes payable                                   |                | 1,904             
|Capital lease obligations, less current portion |                | 3,717             
|Other liabilities                               |                | 910               
|                                               
|Total liabilities                               |                | 72,701            
|Stockholders' equity                            |               
|Common Stock, $0.001 par value; 300,000         |               
|authorized at March 31, 2000 and                |               
|September 30, 1999; 109,853 outstanding at      |               
|March 31, 1999 and 107,576 at                   |               
|September 30, 1999                              |                | 110               
|Additional paid-in capital                      |                | 443,020           
|Deferred compensation and other                 |                | (2,581            
|Accumulated other comprehensive income          |                | 123,459           
|Accumulated deficit                             |                | (81,520           
|                                               
|Total stockholders' equity                      |                | 482,488           
|                                               
|Total liabilities and stockholders' equity      |                | $ 555,189         
|                                               

|See Notes to the Unaudited Condensed Consolidated
Financial Statements
3
|------------------------------------------------------------------------

|Inktomi Corporation
Condensed Consolidated Statements of Cash Flows 
(In thousands) 
(Unaudited)
|------------------------------------------------------------------------------------------------

|                                                       | For the SixMonths EndedMarch 31,
|------------------------------------------------------ | --------------------------------
|
|Cash flows from operating activities                   |                                 
|Net income (loss)                                      |                                 
|Adjustments to reconcile net income (loss) to net cash |                                 
|used in operating activities                           |                                 
|Depreciation and amortization                          |                                 
|Amortization of deferred compensation                  |                                 
|Changes in assets and liabilities:                     |                                 
|Accounts receivable                                    |                                 
|Prepaid expenses and other assets                      |                                 
|Accounts payable                                       |                                 
|Accrued liabilities and other                          |                                 
|Deferred revenue                                       |                                 
|                                                      
|Net cash provided by (used in) operating activities    |                                 
|Cash flows from investing activities                   |                                 
|Purchases of property and equipment                    |                                 
|Proceeds from sale of equipment                        |                                 
|Investments in equity securities, net                  |                                 
|Purchases of short term investments, net               |                                 
|                                                      
|Net cash used in investing activities                  |                                 
|Cash flows from financing activities                   |                                 
|Payments on notes payable                              |                                 
|Proceeds on obligations under capital leases,          |                                 
|net of payments                                        |                                 
|Proceeds from note receivable for stock                |                                 
|Proceeds from issuance of Common Stock in              |                                 
|Public Offering, net of issuance costs                 |                                 
|Proceeds from exercises of stock options and warrants  |                                 
|                                                      
|Net cash provided by financing activities              |                                 
|Effect of exchange rates on cash and cash equivalents  |                                 
|                                                      
|Increase in cash and cash equivalents                  |                                 
|Cash and cash equivalents at beginning of period       |                                 
|                                                      
|Cash and cash equivalents at end of period             |                                 
|                                                      
|                                                      
|Supplemental cash flow information:                    |                                 
|Cash paid for interest                                 |                                 
|                                                      
|Assets acquired under capital leases                   |                                 
|                                                      

|See Notes to the Unaudited Condensed Consolidated
Financial Statements
4
|------------------------------------------------------------------------

|INKTOMI CORPORATION
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Unaudited)
NOTE 1. BASIS OF PRESENTATION
The condensed consolidated
financial statements included herein have been prepared by the Company,
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 for the year ended September
30, 1999 filed with the SEC on December 29, 1999 and our current report on Form
8-K dated December 3, 1999.


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. The financial statements included herein reflect all
normal, recurring adjustments which are, in the opinion of management,
necessary to state fairly the results for the three-month and six-month periods
ended March 31, 2000. Certain prior period balances have been reclassified to
conform to the current period presentation.


In October 1999, we acquired
WebSpective Software, Inc. ("WebSpective"), a developer of software solutions
for content and application distribution, delivery and management, to
supplement our network products offerings. The acquisition of WebSpective was
accounted for as a pooling of interests. Accordingly, all financial information
included herein has been restated to reflect the combined operations of Inktomi
and WebSpective. We recorded acquisition-related costs of approximately $4.0
million in the six-month period ending March 31, 2000, primarily for investment
banking fees, accounting, legal and other expenses. WebSpective revenues from
inception through September 30, 1999 were $3.2 million. WebSpective raised
$12.4 million through various stock issuances since its inception in March
1997, and had net losses from inception to September 30, 1999 of $13.5 million.
As of March 31, 2000, approximately $0.4 million in acquisition-related costs
were included in accrued liabilities.



NOTE 2. INVESTMENT ACCOUNTED FOR UNDER THE EQUITY
METHOD


At March 31, 2000, we held a $4.0
million convertible note receivable (the "Note") from AirFlash Inc.
("AirFlash"), a global application service provider for the delivery of mobile
content and commerce services. The investment is included in the Condensed
Consolidated Balance Sheet under investments in equity securities. Subsequent
to March 31, 2000, through conversion of the Note and an additional $8.0
million cash investment, we purchased 4,219,854 shares of Series B Preferred
Stock at $2.84 per share. This represents a 31.6% ownership share in the equity
of AirFlash. As we do not have a financial controlling interest in AirFlash,
the investment will be accounted for under the equity method.





5
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|NOTE 3. CALCULATION OF NET INCOME (LOSS) PER SHARE


Shares used in computing basic
and diluted net income (loss) per share are based on the weighted average
shares outstanding in each period. Basic net income (loss) per share is
calculated by dividing net income (loss) by the average number of outstanding
shares during the period. Diluted net income (loss) per share is calculated by
adjusting the average number of outstanding shares assuming conversion of all
potentially dilutive stock options and warrants under the treasury stock
method. For the three-month period ended March 31, 1999, and the six-month
periods ended March 31, 2000 and 1999, potentially dilutive stock options and
warrants were excluded from the calculation of diluted net loss per share as
their effect would be anti-dilutive.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|For the Three Months EndedMarch 31,        | For the Six Months EndedMarch 31,
|------------------------------------------ | ---------------------------------
|
|Net income (loss)                          |                                  
|                                          
|                                          
|BASIC EPS:                                 |                                  
|Shares used in calculating basic           |                                  
|net income (loss) per share                |                                  
|                                          
|Basic net income (loss) per share          |                                  
|                                          
|                                          
|DILUTED EPS:                               |                                  
|Weighted average Common Stock outstanding  |                                  
|Weighted average stock options outstanding |                                  
|Weighted average warrants outstanding      |                                  
|                                          
|Shares used in calculating diluted         |                                  
|net income (loss) per share                |                                  
|                                          
|Diluted net income (loss) per share        |                                  
|                                          

|NOTE 4. COMPREHENSIVE NET INCOME (LOSS)


Comprehensive income 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
income are as follows:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|For the Three Months EndedMarch 31, | For the Six Months EndedMarch 31,
|----------------------------------- | ---------------------------------
|
|Net income (loss)                   |                                  
|Unrealized gain (loss) on           |                                  
|available-for-sale securities       |                                  
|Foreign currency translation        |                                  
|gain (loss)                         |                                  
|                                   
|Comprehensive net income (loss)     |                                  
|                                   

|6
|-

|NOTE 5. SEGMENT INFORMATION


Effective September 30, 1999, the
Company adopted Statement of Financial Accounting Standards ("SFAS") No. 131,
Disclosures about Segments of an Enterprise and Related Information. SFAS No.
131 established standards for reporting information about operating segments in
annual financial statements and requires selected information about operating
segments in interim financial reports issued to stockholders. It also
established standards for related disclosures about products and services, and
geographic areas. 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.


We have two reportable operating
segments: network products and portal services. Network products consists of
Inktomi Traffic Server, Content Delivery Suite and associated applications.
Portal services consists of Inktomi Search Engine, Inktomi Directory Engine and
Inktomi Commerce Engine. Our reportable segments are organized primarily by
technology. Each of these segments are 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 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. We do not track assets by operating segments.


Financial information about
segments (in thousands):
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|For the Three Months EndedMarch 31, 2000 | For the Three Months EndedMarch 31, 1999
|---------------------------------------- | ----------------------------------------
|
|Revenues                                 |                                         
|Operating income (loss)                  |                                         

|Two customers each exceeded 10%
of all network products revenues, and one other customer exceeded 10% of
network products revenues in the quarters ended March 31, 2000 and 1999,
respectively. Two customers each exceeded 10% of portal services revenues, and
three customers, including two of the aforementioned, each exceeded 10% of
portal services revenues in the quarters ended March 31, 2000 and 1999,
respectively.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|For the Six Months EndedMarch 31, 2000 | For the Six Months EndedMarch 31, 1999
|-------------------------------------- | --------------------------------------
|
|Revenues                               |                                       
|Operating income                       |                                       
|(loss)                                 |                                       

|Two customers each exceeded
10% of all network products revenues, and one other customer exceeded 10% of
network products revenues in the six-month periods ended March 31, 2000 and
1999, respectively. One customer exceeded 10% of portal services revenues, and
three other customers each exceeded 10% of portal services revenues in the
six-month periods ended March 31, 2000 and 1999, respectively.


7
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NOTE 6. RECENT ACCOUNTING PRONOUNCEMENTS



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, to defer for one quarter the effective
date of implementation of SAB No. 101 with earlier application encouraged. We
will adopt SAB No. 101, as amended, in the quarter ending June 30, 2000. We do
not expect the adoption of SAB No. 101, as amended, to have a material effect
on our financial position or results of operations.


In November 1999, the SEC issued
SAB No. 100, Restructuring and Impairment Charges. SAB No. 100 discusses the
accounting for and disclosure of certain expenses commonly reported in
connection with exit activities and business combinations. We will adopt SAB
No. 100 in the quarter ending June 30, 2000. We do not expect the adoption of
SAB No. 100 to have a material effect on our financial position or results of
operations.


In June 1998, the Financial
Accounting Standards Board ("FASB") issued SFAS No. 133, Accounting for
Derivative Instruments and Hedging Activities. In June 1999, the FASB issued
SFAS No. 137, Accounting for Derivative Instruments and Hedging Activities -
Deferral of the Effective Date of FASB Statement No. 133 - an Amendment of FASB
Statement 133. SFAS No. 133, is effective for fiscal years beginning after June
15, 2000 and requires that all derivative instruments be recorded on the
balance sheet at fair value. Changes in the fair value of derivatives are
recorded each period in current earnings or other comprehensive income,
depending on whether a derivative is designated as part of a hedge transaction
and the type of hedge transaction. The ineffective portion of all hedges will
be recognized in earnings. We have not held any derivative instruments or
participated in any hedging activities to date.



NOTE 7. STOCK SPLITS


On December 3, 1999, we announced
a two-for-one stock split (in the form of a 100% stock dividend) of our Common
Stock. Stockholders of record on December 14, 1999 were issued a certificate on
December 30, 1999 representing one additional share of Common Stock for each
share of Common Stock held on December 14, 1999.


On December 29, 1998, we
announced a two-for-one stock split (in the form of a 100% stock dividend) of
our Common Stock. Stockholders of record on January 12, 1999 were issued a
certificate on January 27, 1999 representing one additional share of Common
Stock for each share of Common Stock held on January 12, 1999.


Historical weighted average
shares outstanding and loss per share amounts have been restated to reflect all
stock splits and pooling of interests with acquired companies.


8
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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


Except for historical
information, the discussion in this report contains forward-looking statements
that involve risks and uncertainties. Our actual results could differ
materially from those anticipated in the forward-looking statements as a result
of a number of factors, including the risks described in the section titled
"Factors Affecting Operating Results" set forth below.



Overview


We were formed in February 1996
to develop and market scalable software applications designed to significantly
enhance the performance and intelligence of large-scale networks, particularly
the Internet. Our applications fall into two broad categories: network products
and portal services.


Network products revenues are
composed of license, consulting, and support and upgrade fees in connection
with Traffic Server, Content Delivery Suite and Media IXT. License fees are
generally based on the number of CPUs running the software and are generally
recognized upon shipment of the software. 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 engine, directory engine and
commerce engines. We generate revenues from our search engine and directory
engine through a variety of contractual arrangements, which include general
service fees, per-query search fees, search service hosting fees, advertising
revenues, license fees and maintenance fees. General service fees, per-query
search fees, search service hosting fees, license fees and maintenance fees are
recognized in the period earned and advertising revenues are recognized in the
period that the advertisement is displayed. Our contracts for our commerce engine currently provide for
payments to us 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, the revenues from online commerce have consisted
primarily of annual infrastructure service fees and non-recurring engineering
fees. Revenues from transaction fees and referral fees are increasing, but are
not expected to account for a large percentage of total revenues in the near
future. Revenues from online commerce are expected to be modest for the next few
quarters.


The network products segment
generated operating income of $2.8 million and $3.7 million in the quarter and
six-month period ended March 31, 2000, respectively, excluding
acquisition-related costs. This represents an increase in operating income of
$6.1 million and $11.6 million over the comparable fiscal 1999 periods. The
portal services segment generated operating losses of $5.6 million and $12.7
million in the quarter and six-month period ended March 31, 2000. This
represents an increase in operating loss of $0.4 million and $3.0 million over
the comparable fiscal 1999 periods. For additional segment information, refer
to Note 5, Segment Information, included in the notes to the unaudited
condensed consolidated financial statements, as presented earlier in this Form
10-Q.


We have recently undertaken a
broad initiative in the global wireless Internet space. This initiative
encompasses our portal services and network products and is directed at
providing the infrastructure software necessary for wireless network operators,
Internet portals and global enterprises to deliver the next-generation of
mobile data services. To facilitate our entry into the wireless space, we will
need to substantially modify our products and services, establish and maintain
strategic alliances with a variety of companies, and hire new management,
technical, sales and other personnel. We expect to incur material expenses
across all wireless expense categories and expect that revenues from this
initiative will be modest for the next several quarters.
9
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|We have not achieved
profitability on an annual basis, although we generated our first quarterly
profit in the quarter ended March 31, 2000. We expect to continue to incur
significant sales and marketing, product development and administrative
expenses across all lines of business, and in particular in our commerce engine
business and to support our new wireless initiative. As a result, we will need
to significantly increase revenues over historical levels to sustain
profitability in the future. Although our revenues have grown in recent
quarters, we cannot be sure that this growth will continue at the same rate.



RESULTS OF OPERATIONS

REVENUES


Total revenues were $47.3 million
and $83.4 million in the quarter and six-month period ended March 31, 2000, an
increase of $32.1 million or 211% and $57.3 million or 220% over the comparable
periods in fiscal 1999, and a 31% increase over the quarter ended December 31,
1999. 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. For
the quarter and six-month period ended March 31, 1999, one other customer
exceeded 10% of total revenues.


Network products revenues totaled
$30.8 million and $52.9 million in the quarter and six-month period ended March
31, 2000, an increase of $22.0 million or 250% and $38.6 million or 268% over
the comparable periods in fiscal 1999. The increase was primarily due to
increased licenses of Traffic Server and Content Delivery Suite, particularly
to customers with plans to implement content delivery networks. These revenues
consist primarily of licensing contracts between $0.1 million and $0.5 million
and certain multi-million dollar contracts. For the quarter ended March 31,
2000, two customers each exceeded 10% of network products revenues, and for the
six-month period ended March 31, 2000, two customers, including one other
customer than was noted above, each exceeded 10% of network products revenues.
For the quarter and six-month period ended March 31, 1999, one other customer
exceeded 10% of network products revenues.


Portal services revenues totaled
$16.5 million and $30.5 million in the quarter and six-month period ended March
31, 2000, an increase of $10.1 million or 158% and $18.8 million or 161% over
the comparable periods in fiscal 1999. Most of the increase was the result of
new portal services customers. Of the total portal services revenues for the
quarter and six-month period ended March 31, 2000, $12.7 million and $23.3
million were derived from the Inktomi Search Engine, and $3.8 million and $7.2
million were derived from the Inktomi Commerce Engine, respectively. For the
quarter ended March 31, 2000, two 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. For the quarter
ended March 31, 1999, three customers, including two of the aforementioned,
each exceeded 10% of portal services revenues, and for the six-month period
ended March 31, 1999, three other customers each exceeded 10% of portal
services revenues.


During the quarter and six-month
period ended March 31, 2000, we recognized revenues of approximately $4.5
million and $18.1 million, respectively, on contracts, development, and
licensing arrangements with customers in which we are equity shareholders.
During the quarter and six-month period ended March 31, 1999, we recognized net
revenues of approximately $0.7 million and $1.1 million, respectively, on
contracts and licensing arrangements with customers in which we are equity
shareholders. Prices on these contracts and arrangements were comparable to
those given to other similarly situated customers.
10
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|EXPENSES


Operating expenses include cost
of revenues, selling and marketing expenses, research and development expenses,
general and administrative expenses and acquisition-related expenses. Most of
our expenses (other than cost of revenues and acquisition-related expenses)
consist of personnel and related costs across the functional areas as listed
above. A significant portion of our operations are located in the San Francisco
Bay Area where competition for personnel and other resources is competitive. As
we grow our businesses, we expect our total costs per employee to increase,
which along with increased headcount, will increase our expenses in absolute
dollars.


We are subject to employer
payroll taxes on gains on certain employee stock options. At March 31, 2000,
our stock price was approximately $195 per share. Had our employees exercised
all of these options on March 31, 2000, we would have been subject to payroll
taxes on gains realized by our employees of $3.9 million on vested options and
$27.2 million on unvested options. These amounts are charged to operations in
the period the options are exercised. Should a significant number of our
employees choose to exercise options, or if our stock price increases
significantly, our quarterly results of operations could be adversely affected.


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, as well as
royalties for our Media IXT application. Cost of revenues was $6.9 million and
$12.8 million in the quarter and six-month period ended March 31, 2000, an
increase of $4.2 million or 155% and $7.8 million or 156% over the comparable
periods in fiscal 1999. The increases were due primarily to additional
depreciation, network and hosting charges resulting from continued expansions
of our data centers in California and the establishment of a data center in the
United Kingdom during fiscal 1999. We expect cost of revenues to increase
substantially in absolute dollars in the next few quarters due primarily to
anticipated expanded cluster operation costs and increased royalties for our
Media IXT application.


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 $27.4 million and $50.1 million in the quarter and
six-month period ended March 31, 2000, an increase of $15.4 million or 128% and
$27.7 million or 124% over the comparable periods of fiscal 1999. 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 increase substantially in
absolute dollars over the next few quarters as we hire additional sales and
marketing personnel, initiate additional marketing programs to support each of
our product lines, initiate a national branding campaign and establish sales
offices in additional domestic and international locations.


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 $12.5 million
and $23.5 million in the quarter and six-month period ended March 31, 2000, an
increase of $5.6 million or 80% and $10.9 million or 86% over the comparable
periods of fiscal 1999. The increase was primarily due to an increase in the
number of research and development personnel to support expansion of our search
engine and network products businesses, online commerce development, and
increases in quality assurance, technical support and technical publications
personnel. We believe significant investment in research and development is
essential to our future success and expect that research and development
expenses will increase in absolute dollars in future periods. We have not
capitalized any software development expenses to date.
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|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 $3.3 million and $6.0
million in the quarter and six-month period ended March 31, 2000, an increase
of $1.3 million or 68% and $2.4 million or 67% over the comparable periods of
fiscal 1999. 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
new corporate headquarters in Foster City, California.


Acquisition-Related Costs


In October 1999, we acquired
WebSpective Software, Inc. ("WebSpective"), a developer of software solutions
for content and application distribution, delivery and management, to
supplement our network products offerings. The acquisition of WebSpective was
accounted for as a pooling of interests. Financial results for historical
periods were restated to reflect the combined operations beginning in the
quarter ended December 31, 1999. We recorded acquisition-related costs of
approximately $4.0 million in the quarter ended December 31, 1999, primarily
for investment banking fees, accounting, legal and other expenses. As of March
31, 2000, approximately $0.4 million in acquisition-related costs were included
in accrued liabilities.


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. Other income, net
totaled $3.7 million and $7.6 million in the quarter and six-month period ended
March 31, 2000, an increase of $2.8 million or 300% and $6.0 million or 372%
over the comparable periods of fiscal 1999. Most of this increase was generated
from interest income on proceeds from our August 1999 and November 1998 public
offerings and gains on sales of investments in equity securities of $1.2
million and $1.9 million in the quarter and six-month period ended March 31,
2000. These gains were offset by impairment losses related to the write-off of
obsolete computer and networking equipment of $0.7 million in the quarter and
six-month period ended March 31, 2000 and interest charges of $0.9 million and
$1.3 million, in the quarter and six-month period ended March 31, 2000,
respectively.


Net Income (Loss)


We recorded net income of $1.0
million and net loss of $5.4 million or net income of $0.01 per share and net
loss of $0.05 per share, in the quarter and six-month period ended March 31,
2000, respectively, compared to net losses of $7.4 million and $15.9 million or
$0.07 and $0.16 per share, in the comparative periods of fiscal 1999. The
results for the six-month period ended March 31, 2000 include nonrecurring
acquisition-related costs of approximately $4.0 million incurred in connection
with the acquisition of WebSpective in the quarter ended December 31, 1999.
Excluding these acquisition-related costs, we recorded a net loss of $1.4
million or $0.01 per share in the six-month period ended March 31, 2000.


Liquidity and Capital Resources


Cash, cash equivalents and
short-term investments totaled $269.3 million at March 31, 2000, down from
$301.9 million at fiscal year-end September 30, 1999. Most of this decrease
came from the use of cash for investments in equity securities and the purchase
of property and equipment, offset by increased cash collections of accounts
receivable.

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|Investments in equity securities
totaled $175.6 million at March 31, 2000, up from $8.2 million at fiscal
year-end September 30, 1999. In accordance with generally accepted accounting
principles, we carry the value of our investments at fair market value with any
change from cost or prior value as an adjustment to stockholders' equity. All
of our investments in equity securities are comprised of strategic investments
in Internet companies, the most significant portion being InterNAP Network
Services Corporation, in which we invested $20 million in October 1999.
Internet stock values are volatile and therefore our investments in equity
securities balance may fluctuate significantly in the future. If significant
decreases in the value of these investments were to occur, our liquidity could
be adversely affected.


We generated $24.9 million in
cash from operations in the six-month period ended March 31, 2000. This
compares to $15.6 million used in operations in the comparable period in fiscal
1999. The increase in cash from operations was primarily due to a decrease in
our net loss from $15.9 million to $5.4 million in the six-month periods ended
March 31, 1999 and 2000, respectively, increased cash collections resulting
from accounts receivable collection initiatives, as well as increases in
depreciation and amortization and deferred revenue in the quarter ended March
31, 2000.


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 $34.8 million and $7.7 million in the six-month
periods ended March 31, 2000 and 1999, respectively, primarily to further
expand our Internet search engine and commerce engine service capacity, to
launch and support our online commerce business and for leasehold improvements.
Approximately $3.4 million of the property and equipment investments in the
six-month period ended March 31, 2000 were part of a sale-leaseback transaction
in which we sold furniture and related items to a leasing company and leased
the furniture and related items under a new capitalized leases agreement.


From time to time, we have used
debt and leases to partially finance capital purchases. At March 31, 2000, we
had $11.9 million in total loans and capitalized lease obligations outstanding.
The loans are collateralized by our underlying assets, and each capitalized
lease is collateralized by its respective underlying equipment purchased
through the lease agreements. Approximately $4.9 million of our debt at March
31, 2000 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 million
over the lease term ending October 31, 2016.


In the six-month period ended
March 31, 2000, we raised $23.5 million from stock option exercises and
employee stock purchase plan purchases.


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. We expect to
devote substantial capital resources to hire and expand our sales, support,
marketing and product development organizations, to expand marketing programs,
to establish additional facilities worldwide and for other general corporate
activities.

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|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 business substantially depends upon the success of our
Traffic Server product and Content Delivery Suite.


Our future growth substantially
depends on the commercial success of our Traffic Server network cache product
and our Content Delivery Suite. We are targeting several market segments for
these products, including telecommunications carriers, Internet service
providers, Internet hosting providers, OEM customers, large enterprise
customers and content providers. Our ability to generate substantial and
sustained revenues from these products is dependent upon achieving sales
penetration in each of these market segments and significantly increasing the
number of new and repeat customer transactions. The market for large-scale
network caching and content delivery is in its early stages, and we are not
sure our target customers will widely adopt and deploy these technologies
throughout their networks. Even if they do so, they may not choose our network
products, because they do not include the features they require, they wish to
outsource content delivery services to a third party vendor rather than
directly implement caching in their networks, or for technical, cost, support
or other reasons.


Our business would be harmed if customers choose not to use or
promote our search and directory services.


Revenues from our search and
directory services result primarily from the number of end-user searches that
are processed by our search engine and directory engine and the level of
advertising revenue generated by our Internet portal and other web site
customers. Our agreements with customers do not require them to direct
end-users to our search or directory services or to use our search or directory
services exclusively or at all. Accordingly, revenues from search and directory
services are highly dependent upon the willingness of customers to promote and
use the search and directory 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 directory engine, and the ability
and willingness of customers to sell advertisements on the Internet pages
viewed by end-users. 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 beginning to mature. 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 and features to existing and
future customers, establish deeper strategic relationships with our customers
and broaden our market opportunities.
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|The online commerce market is rapidly evolving and our
success is dependent on many factors outside of our direct
control.


The online commerce market is in a
rapid state of evolution with a wide variety of online companies expending
substantial funds to develop brand recognition and large bases of end-user
consumers. Many of our
portal customers are new to online commerce and have limited experience in
promoting commerce transactions through their web sites. The success of our
commerce engine will largely depend on a variety of factors, many of which are
outside of our control. These factors include:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | our ability to establish and maintain strong relationships with customers and
online merchants;
| | - | -----------------------------------------------------------------------------------------------

| |  | increasing
end-user traffic and transactions across our customers' web sites;
| | - | -----------------------------------------------------------------------------

| |  | our ability to assemble a robust and varied database of products of interest to
end-user consumers;
| | - | ---------------------------------------------------------------------------------------------------

| |  | the ability and willingness of our customers to promote our commerce services
on their web sites;
| | - | -------------------------------------------------------------------------------------------------

| |  | the dollar volume of online purchases made by end-users of our customers' web
sites; and
| | - | ----------------------------------------------------------------------------------------

| |  | the level of advertising and other revenues generated by customers.
| | - | -------------------------------------------------------------------

|We have made significant
investments in our online commerce business and expect to continue to do so.
These investments have been and will continue to be required in advance of
generating significant revenues, which have consisted primarily of
infrastructure service fees and non-recurring engineering fees to date and are
expected to be modest for the next few quarters. We cannot be sure that our
entry into the online commerce business will be successful.


We launched the first commercial
version of our Internet commerce engine in mid-1999. Our commerce engine is
designed to collect and organize vast amounts of electronic information from
online merchants and publishers of comparative product information. The commerce
engine is also designed to track and confirm purchases made by end-users of our
customers' services and to generate invoices for our online merchants to support
performance-based marketing arrangements among multiple parties. These are
highly complex tasks. Our commerce engine customers demand a wide variety of
complex features and deployment requirements. These deployments require
substantial resources and execution, and there can be no assurance that we will
meet required schedules or successfully develop all required technologies. We
have at times experienced delays in the deployment of these new technologies,
and expect that implementation and maintenance of these services will require
significant expenses and management and development resources.


The markets in which we operate are highly competitive 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 well-funded early-stage
companies that are focused in the short term on building customer bases and
name recognition in the market. This may cause some price pressure on our
products and services in the future.

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|We directly compete against
several companies in the network cache and content delivery market, including
Akamai, CacheFlow, Cisco Systems, InfoLibria, Microsoft, Netscape, Network
Appliance, Novell and Spyglass. We also compete against freeware caching
solutions including CERN, Harvest and Squid. 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.


We compete with a number of
companies to provide Internet search and directory services. Traditionally, our
competitors have provided search/directory services directly to end-users
through their own web sites and have supplied search/directory services to third
party web sites as a supplement to this business. However, we are facing
increased competition from several newer competitors that are following our
business model of providing Internet search/directory services primarily to
Internet portals and other web site customers. These newer competitors have
focused on search result relevance, database size metrics and ease of use to
differentiate their services. We currently compete with companies including
AltaVista, Ask Jeeves, FAST Search and Transfer, Google, Infoseek, LookSmart,
Netscape Open Directory and Northern Light. In addition, several large media and
other Internet-based companies have recently made investments in, or acquired,
Internet search engine companies and may seek to develop or customize their
services to deliver to our target customers.


The market for our commerce engine
application is rapidly evolving and intensely competitive. Our current and
potential competitors include other providers of commerce technologies and
services including Frictionless Commerce and InfoSpace, commerce destination
sites including Deal Time and mySimon; third party merchant aggregators
including Affinia; commerce wallet providers including Brodia and Gator;
affiliate services including BeFree and Linkshare; and Internet portals and
other captive marketplace web sites, including Amazon.com, America Online,
Excite@Home and Yahoo!. We believe the principal factors that will draw
end-users to an online commerce application include brand availability,
selection, personalized services, convenience, price, accessibility, customer
service, quality of search tools, quality of content, and reliability and speed
of fulfillment for products ordered. Because we serve primarily as a technology
and infrastructure provider, many of these factors are determined by our
customers and partners, and we have little or no control over them.


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, fewer online commerce transactions and
traffic, reduced gross margins and loss of market share.




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|The Internet infrastructure market is rapidly changing and we
must develop and introduce new products and technologies to remain competitive.


Rapid technological change,
frequent new product introductions, changes in customer requirements and
evolving industry standards characterize the Internet infrastructure market.
The introduction of products embodying new technologies and the emergence of
new industry standards could render our existing products obsolete. Our future
success will depend upon our ability to develop and introduce a variety of new
products and product enhancements to address the increasingly sophisticated
needs of our customers. The increasing scope of our business has led us to
allocate additional resources to our current business opportunities and fewer
resources to longer-term projects. 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.


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 recently 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 and 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 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. In addition, our potential customers of Inktomi 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. Also, 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.


If we do not meet performance requirements in our portal
services agreements, customers may cancel our service or choose a different
service.


Our search engine, directory
engine and commerce engine agreements typically include specific performance
requirements, including the features provided, reliability, processing speed,
size of the Internet database maintained, number of merchants and products
within the database, and frequency of updating the database. In addition, we
believe it is important to maintain features and functionality that are not
explicitly covered in our agreements, such as high relevance of search and
product results. The growing volume of search queries processed by our search
engine and the frequency with which we update our portal services to include
additional functionality have placed and continue to place some strain on our
operational capability to meet customer requirements. If we do not meet these
requirements, customers may cancel our service or choose to use a different
service.

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|Circumstances beyond our control may result in service
interruptions that could cause our business to suffer.


We provide our portal services
from multiple data centers. Circumstances outside of our control such as fires,
earthquakes, power failures, telecommunications failures, sabotage,
unauthorized intrusions into our databases and similar events may bring down
one or more of our data centers. For example, in June 1998, lightning struck
the facility housing our data center in Virginia, interrupting service from
this center. In addition, our data center hosting provider has experienced
network failures from time to time, which has also interrupted our service.
Service interruptions for any reason would reduce our revenues and could result
in contract cancellations.


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 Traffic Server and
Content Delivery Suite. We further expect that these revenues will come from
licenses to a small number of customers. The volume and timing of orders are
difficult to predict because the markets for Traffic Server and Content
Delivery Suite are in their early stages and the sales cycle varies
substantially from customer to customer. The cancellation or deferral of even a
small number of licenses of Traffic Server or Content Delivery Suite 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. We plan to increase our operating
expenses significantly to support our entry into the wireless Internet market,
enhance and support our online commerce business, expand our sales and
marketing operations, broaden our customer support capabilities, establish new
data centers, 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.


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 success depends on our ability to expand our sales and
support organizations.


We will need to substantially
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 success
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 expertise in the computer
network and telecommunications industry. 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
any of 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 and
other sales capabilities to sell our products.
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|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 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. In addition, our portal services technology systems collect end-user
and transaction information, which we use to deliver services to our customers
and merchant partners. 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. Further, there is the potential for product liability claims to be
asserted against us by end-users who purchase goods and services through our
commerce engine. 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 recently enacted Internet laws regarding children's
privacy, copyrights, taxation and the transmission of sexually explicit
material. The European Union recently enacted its own privacy regulations, and
is currently considering copyright legislation that may extend (or clarify the
existence of) the right of reproduction held by copyright holders to control
the right to make temporary copies for any reason, including caching and other
copies made during the transmission process. 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.


Our success depends on our ability to manage growing and
changing operations.


Our ability to offer products and
services and implement our business plan in a rapidly evolving market
successfully requires an effective planning and management process. We continue
to increase the scope of our operations domestically and internationally and
have grown our headcount substantially. This growth has placed, and our
anticipated future operations will continue to place, a significant strain on
our management systems, personnel and other resources. We will need to continue
to improve our financial and managerial controls and reporting systems and
procedures, enhance our internal and external security systems, and continue to
expand, train and manage our work force worldwide. Furthermore, we expect that
we will be required to manage multiple relationships with various customers,
merchants and other third parties.
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|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, 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.


We may not be able to recruit and retain the personnel we need
to succeed.


We intend to hire a significant
number of additional sales, support, marketing, technical, and research and
development personnel. Competition for these individuals is intense, and we may
not be able to attract or retain the additional highly qualified personnel
necessary for our success. Our future success also depends upon the continued
service of our executive officers and other key sales, marketing and support
personnel. None of our officers or key employees is bound by an employment
agreement for any specific term. Our relationships with these officers and key
employees are at will. We do not have key person life insurance policies
covering any of our employees other than our Chief Executive Officer.


Any acquisitions that we make could adversely affect our
operations or financial results.


We have purchased three companies
since September 1998 and intend to continue to 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. 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. 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.

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|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 and internationally. We have offices in Australia, China,
England, France, Germany, Japan and Korea to market and sell our products in
those countries and surrounding regions. We plan to establish additional
facilities in other parts of the world. The expansion of our existing
international operations and entry into additional international markets will
require significant management attention and financial resources. We cannot be
sure that our investments in establishing facilities in other countries will
produce desired levels of revenue. We currently 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 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 jurisdictions. The laws and cultural requirements in these
countries may 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.


Our international expenses are
generally denominated in local currencies. We do not currently engage in
currency hedging activities. Although exposure to currency fluctuations to date
has been insignificant, future fluctuations in currency exchange rates may
adversely affect results of 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 and the
functionality of products in different industry segments overlaps. We believe
that many companies have filed or intend to file patent applications covering
aspects of their technology that they may claim our technology 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.
21
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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.




Part II. Other Information


Item 4. Submission of Matters to a Vote of
Stockholders


At the Annual Meeting of
Stockholders of the Company held on March 7, 2000, the following proposals were
adopted by the margins indicated below. There were 108,609,016 shares of Common
Stock entitled to vote at the meeting and a total of 76,145,999 shares were
represented at the meeting.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | Number of Shares     
| | ---------------------
|
| | David C. Peterschmidt
| | Eric A. Brewer       
| | Frank Gill           
| | Fredric W. Harman    
| | John A. Porter       
| | Alan F. Shugart      

|2. |  | To
ratify the appointment of PricewaterhouseCoopers LLP as our independent
auditors for fiscal 2000.
|-- |  | ----------------------------------------------------------------------------------------------------

|                | Number of Shares
|--------------- | ----------------
|                |                 
|For             |                 
|Against         |                 
|Abstain         |                 
|Broker Non-Vote |                 

|22
|--

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

|(a) |  | Exhibits
|--- |  | --------

|ExhibitNumber
|-------------

|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 by and among Inktomi, IC
Acquisition Corp. and Impulse! Buy Network, Inc.
|------ |  | --------------------------------------------------------------------------------------------------------------

|2.3(7) |  | Agreement  and  Plan of  Reorganization  by and  among  Inktomi,  WS
Acquisition Corp. and WebSpective Software, Inc.
|------ |  | ---------------------------------------------------------------------------------------------------------------------

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

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

|3.4(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(3) |  | 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 |  | First Amended and Restated Lease Agreement  between  Parkside Towers
            Co-Tenancy and Inktomi.
|---- |  | --------------------------------------------------------------------------------------------------------

|10.9 |  | Employee Loan  Agreement  dated March 2, 2000 between Kirk D. Bowman
            and Inktomi.
|---- |  | ---------------------------------------------------------------------------------------------

|10.10 |  | Reserved for future use.
|----- |  | ------------------------

|10.11 |  | Reserved for future use.
|----- |  | ------------------------

|10.12 |  | Reserved for future use.
|----- |  | ------------------------

|10.13 |  | Reserved for future use.
|----- |  | ------------------------

|10.14 |  | Reserved for future use.
|----- |  | ------------------------

|10.15 |  | Reserved for future use.
|----- |  | ------------------------

|10.16 |  | Reserved for future use.
|----- |  | ------------------------

|10.17 |  | Reserved for future use.
|----- |  | ------------------------

|10.18 |  | Reserved for future use.
|----- |  | ------------------------

|10.19 |  | Reserved for future use.
|----- |  | ------------------------

|10.20(1) |  | Office Lease dated  October 9, 1998  between  Inktomi and WHFST Real
            Estate Limited Partnership, a Delaware limited partnership.
|-------- |  | --------------------------------------------------------------------------------------------------------------------------------------------

|10.21(1) |  | C2B Technologies Inc.  (formerly  BeyondNews,  Inc.) 1997 Stock Plan
            and form of agreement thereunder.
|-------- |  | ------------------------------------------------------------------------------------------------------------------

|10.22(2) |  | Registration  Rights  Agreement  dated  September  25, 1998  between
            Inktomi and former  stockholders of C2B Technologies Inc.  (included
            in Exhibit 2.1).
|-------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.23(4) |  | 1998   Nonstatutory   Stock   Option  Plan  and  form  of  agreement
            thereunder.
|-------- |  | --------------------------------------------------------------------------------------------

|10.24(5) |  | Declaration  of  Registration  Rights  dated  April 30, 1999 for the
            benefit of former Impulse! Buy Network, Inc. stockholders  (included
            in Exhibit 2.2).
|-------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.25(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.
|-------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.26(8) |  | Impulse!  Buy  Network,  Inc.  1997 Stock Plan and form of agreement
            thereunder.
|-------- |  | --------------------------------------------------------------------------------------------

|10.27(9) |  | WebSpective  Software,  Inc.  (formerly Atreve Software,  Inc.) 1997
            Stock Option Plan and form of agreement thereunder.
|-------- |  | ------------------------------------------------------------------------------------------------------------------------------------

|10.28(7) |  | Declaration  of  Registration  Rights dated  October 1, 1999 for the
            benefit of former WebSpective Software,  Inc. stockholders (included
            in Exhibit 2.3).
|-------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|23
|--

|
|

|27.1 |  | Financial Data Schedules.
|---- |  | -------------------------

__________

|(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.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------

|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.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date: May 15, 2000 | By: | Inktomi Corporation
/s/  Jerry M. Kennelly
----------------------------------
Jerry M. Kennelly,
Senior Vice President and Chief
Financial Officer
(duly authorized officer and
principal financial officer)
|------------------ | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|24
|--

|INDEX TO EXHIBITS
|-----------------

|(a) |  | Exhibits
|--- |  | --------

|ExhibitNumber
|-------------

|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 by and among Inktomi, IC
Acquisition Corp. and Impulse! Buy Network, Inc.
|------ |  | --------------------------------------------------------------------------------------------------------------

|2.3(7) |  | Agreement  and  Plan of  Reorganization  by and  among  Inktomi,  WS
Acquisition Corp. and WebSpective Software, Inc.
|------ |  | ---------------------------------------------------------------------------------------------------------------------

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

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

|3.4(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(3) |  | 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 |  | First Amended and Restated Lease Agreement  between  Parkside Towers
            Co-Tenancy and Inktomi.
|---- |  | --------------------------------------------------------------------------------------------------------

|10.9 |  | Employee Loan  Agreement  dated March 2, 2000 between Kirk D. Bowman
            and Inktomi.
|---- |  | ---------------------------------------------------------------------------------------------

|10.10 |  | Reserved for future use.
|----- |  | ------------------------

|10.11 |  | Reserved for future use.
|----- |  | ------------------------

|10.12 |  | Reserved for future use.
|----- |  | ------------------------

|10.13 |  | Reserved for future use.
|----- |  | ------------------------

|10.14 |  | Reserved for future use.
|----- |  | ------------------------

|10.15 |  | Reserved for future use.
|----- |  | ------------------------

|10.16 |  | Reserved for future use.
|----- |  | ------------------------

|10.17 |  | Reserved for future use.
|----- |  | ------------------------

|10.18 |  | Reserved for future use.
|----- |  | ------------------------

|10.19 |  | Reserved for future use.
|----- |  | ------------------------

|10.20(1) |  | Office Lease dated  October 9, 1998  between  Inktomi and WHFST Real
            Estate Limited Partnership, a Delaware limited partnership.
|-------- |  | --------------------------------------------------------------------------------------------------------------------------------------------

|10.21(1) |  | C2B Technologies Inc.  (formerly  BeyondNews,  Inc.) 1997 Stock Plan
            and form of agreement thereunder.
|-------- |  | ------------------------------------------------------------------------------------------------------------------

|10.22(2) |  | Registration  Rights  Agreement  dated  September  25, 1998  between
            Inktomi and former  stockholders of C2B Technologies Inc.  (included
            in Exhibit 2.1).
|-------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.23(4) |  | 1998   Nonstatutory   Stock   Option  Plan  and  form  of  agreement
            thereunder.
|-------- |  | --------------------------------------------------------------------------------------------

|10.24(5) |  | Declaration  of  Registration  Rights  dated  April 30, 1999 for the
            benefit of former Impulse! Buy Network, Inc. stockholders  (included
            in Exhibit 2.2).
|-------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.25(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.
|-------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.26(8) |  | Impulse!  Buy  Network,  Inc.  1997 Stock Plan and form of agreement
            thereunder.
|-------- |  | --------------------------------------------------------------------------------------------

|10.27(9) |  | WebSpective  Software,  Inc.  (formerly Atreve Software,  Inc.) 1997
            Stock Option Plan and form of agreement thereunder.
|-------- |  | ------------------------------------------------------------------------------------------------------------------------------------

|10.28(7) |  | Declaration  of  Registration  Rights dated  October 1, 1999 for the
            benefit of former WebSpective Software,  Inc. stockholders (included
            in Exhibit 2.3).
|-------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|25
|--

|
|

|27.1 |  | Financial Data Schedules.
|---- |  | -------------------------

__________

|(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.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------

|26
|--