Inktomi Buys Out of $315M in Lease Obligations

FOSTER CITY, CA-The Data-retrieval technology company Inktomi Corp. says it has terminated its lease of the 381,000-sf Parkside Towers office development here and exercised a purchase option on the synthetic lease for its Bayside corporate headquarters in order to sell the facility.

As a result of these transactions, Inktomi says it will cease to have a long-term lease obligation of $315 million (estimated on June 30, 2002) and quarterly cash payments of approximately $5 million for the Parkside facility. “The impact of these transactions is expected to be cash neutral following the sale of the Bayside facility, expected by approximately year end,” according to a company statement.

The company’s share price is trading at $0.46 per share Friday afternoon, up a penny on the day. The company’s share price hit a 52-week low of $0.33 on Aug. 20. In January of this year, its share price was nearly $8.