Macromedia Reports First Quarter Fiscal Year 2003 Financial Results
The first quarter fiscal year 2003 financial statements as reported on July 17, 2002 have been adjusted for subsequent events. Please see the Form 10-Q as filed with the SEC, for further details of the adjustments and the updated financial statements.
SAN FRANCISCO, CA—July 17, 2002—Macromedia (NASDAQ:MACR) Macromedia, Inc. (Nasdaq: MACR) today announced first quarter fiscal year 2003 results. Revenues for the quarter ended June 30, 2002, were $84.2 million, compared with revenues of $88.7 million reported in the same quarter a year ago.
Pro forma net income for the first quarter fiscal year 2003 was $450,000, or $0.01 per diluted share, compared to a pro forma net loss of $8.6 million, or $0.15 per share for the first quarter fiscal year 2002. Net loss on a GAAP basis for the quarter ended June 30, 2002, was $4.3 million or $0.07 per share, compared to a loss of $111.8 million or $1.94 per share for the same quarter a year ago.
"We're pleased with our progress this quarter. We successfully launched our most ambitious product agenda ever with the MX family, and we delivered against our financial targets in this tough economy," said Rob Burgess, chairman and CEO, Macromedia, Inc. "Now, we are focused on helping companies around the world realize the business benefits of MX—providing a better Internet experience at a lower cost."
Business Outlook—Second Quarter Fiscal Year 2003
As we had expected prior to the MX launch, the upgrade cycle for MX is likely to be both slower to build, and longer than prior upgrade cycles, due to both the broader markets being addressed and the sluggish spending environment. Accordingly, we have limited our guidance to the near-term. Macromedia expects revenue for the September quarter to be in line with the June quarter. Gross margin for the second quarter is expected to be approximately in the 87 percent to 89 percent range. The company will continue to tightly manage operating expenses to yield improved pro forma profitability in the second quarter of fiscal year 2003.
Pro Forma Results
Macromedia's pro forma results for the three months ended June 30, 2002 and 2001, differ from GAAP results due to adjustments for the following items reported in its unaudited condensed consolidated results from operations:
· Non-cash charges for stock compensation
· Restructuring expenses
· Amortization of intangible assets
· Loss on investments
· Loss on equity affiliate
Pro forma results for the three months ended June 30, 2002 and 2001, reflect an effective tax rate of 20 percent.