U.S. Bancorp Piper Jaffray lowered its rating Wednesday on software maker Macromedia, citing weakening sales of the company's Studio MX software package. The stock is now ranked as "market perform."
Analyst Gene Munster said that recent sales reports from researcher NPD show sales of Studio MX--a collection of tools for Web designers and developers--have dropped more than 10 percent during the current calendar quarter, with a particularly sharp drop-off in retail sales. Studio MX accounted for 37 percent of Macromedia's revenue during the company's last quarter. "With these indications of demand pressure facing a core product line...we believe that it will be difficult for new products...to overcome slowing Studio MX sales," Munster wrote.