Macromedia beats expectations
The multimedia software maker gives Wall Street an upside surprise, with first-quarter results that were boosted by its new Web products.
The multimedia software maker, which has seen its share price fall more than 20 percent this month, closed at 14.3125 today, down 1.125 points over yesterday.
Macromedia posted net income of $2.96 million, or 7 cents a share, for the quarter ending June 30, compared with a loss of $1.24 million, or 3 cents a share, posted a year ago. Analysts had been expecting a net profit of 5 cents a share, according to First Call.
The company's revenues for the quarter rose 18 percent compared with a year ago, to $32.3 million. Windows and cross-platform products accounted for 49 percent of those revenues, while Macintosh-related products represented 51 percent--an increase of 11 percent over year-ago figures. Macromedia attributed the increase in Macintosh-related revenues to the roll-out of its new Web products.
Also today, in a move to capture more of the Windows market, Macromedia formally announced that its Shockwave and Flash players are preinstalled in the Windows 98 operating system. Although industry analysts cited the move as good for Macromedia, they warned that it won't be the silver bullet the company needs in order to totally turn itself around.