Inktomi

(INKT)

said first-quarter revenue and earnings will be below the company's prior expectations, thanks to the conditions in the U.S. capital markets and the broader economy that have resulted in a slowdown in infrastructure spending.

The Foster City, Calif., company, a developer of Internet infrastructure software, now expects revenue of $80 million to $81 million for the first quarter ended Dec. 31. The company expects to report pro forma diluted earnings that at least break even on a per share basis, and may reach income of a penny a share.

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According to

First Call/Thomson Financial

, analysts expect Inktomi to earn 3 cents in the first quarter. The company lost 2 cents a share in the year-ago period. Wall Street is also looking for revenue of $89.5 million, up from $36.10 million last year.

Inktomi said "while our business will be affected by macroeconomic conditions in the near term, we are confident in the long-term outlook for our infrastructure products and services."

Shares of Inktomi were halted for late

Nasdaq

trading after the market closed at $18.50.