SAN FRANCISCO -- With its primary Web caching and flow management business growth stalled by changing customer demands, Inktomi (INKT) said it's planning a significant push into the enterprise software business.

Speaking at

Robertson Stephens Technology 2001 Conference

here Wednesday, Inktomi Chief Financial Officer Jerry Kennelly said the company saw the enterprise area -- developing software to enable B2B and corporate intranet sites -- as a key area of new revenue and growth. The company's traditional strength had been in Internet search engines and content delivery.

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Reiterating the company's cautious guidance for the current quarter and weakness among its key Internet service provider and telecom customers, Kennelly echoed the wishful thinking of almost every executive presenting at this conference: that the second half will bring a recovery. Inktomi's stock closed Wednesday at $14.38, well off its 52-week high of $241.50.

For the fiscal first quarter ended Dec. 31, the company

reported revenue of $80 million, up only slightly from the fiscal fourth quarter's $78 million.

Kennelly said over the next 18 months the company wants to boost its enterprise-related business to somewhere around 30% to 40% of its network service revenue from its current level of less than 10%.

"A good-sized enterprise now has the same needs as an ISP did a few years ago," he said, pointing to demand for features such as business-to-business commerce and videoconferencing.

Running down a list of enterprise customers that included

Merrill Lynch

(MER)

,

Fidelity

and

Nortel

(NT)

, Kennelly said the firm plans to sign up additional

Fortune 50

names. "That's the way we'll enter the enterprise market, and we think we'll be successful," he said.

Kennelly also said the company has started a division to look at opportunities in the wireless area, but didn't provide further details.