MACR...Reports Record Revenues for First Quarter Fiscal Year 2001
Company Delivers 85% Revenue Growth and 300% Earnings Growth
SAN FRANCISCO, Jul 20, 2000 /PRNewswire via COMTEX/ -- Macromedia (Nasdaq:
MACR) today announced revenue of $94.8 million for the first quarter ended June
30, 2000, an 85% increase over revenue of $51.2 million reported in the quarter
ended June 30, 1999. This represents the tenth consecutive quarter the Company
has achieved record revenue results.
(Photo: newscom.com )
Pro forma net income* grew more than 300% year over year to $14.5 million, or
$0.26 diluted earnings per share during the first quarter of fiscal 2001,
compared to pro forma net income of $3.5 million, or $0.07 diluted earnings per
share in the same period a year ago.
"Our products delivered another record-breaking quarter as they enable our
customers to realize their visions of what the Web can be," said Rob Burgess,
Macromedia chairman and chief executive officer. "We expect the Dreamweaver and
Flash franchises to provide additional opportunities for growth in the future as
we further develop these technologies for the wireless and handheld devices
markets."
"We are still just at the beginning of utilizing the Internet to its full
advantage and in defining what the Web can be," added Burgess. "Our vision of
the Web Content Lifecycle is resonating with our customers as we begin to
deliver integrated products which enable the production of Web sites for
eBusinesses that include sophisticated applications, rich media, deep
personalization, and sophisticated analysis."
Dreamweaver UltraDev Ships
During the quarter, Macromedia announced and shipped its newest product,
Macromedia Dreamweaver UltraDev. Macromedia Dreamweaver UltraDev, the visual
solution for rapid Web application development, is the first application to
allow visual creation of data-driven Web applications across industry leading
server technologies, such as Sun Microsystems JavaServer Pages (JSP), Microsoft
Active Server Pages (ASP), and Allaire ColdFusion Markup Language (CFML).
Macromedia Flash Reaches More Than 240 Million Users
Macromedia Shockwave and Flash player downloads continue to increase. During the
quarter, more than 180 million downloads were recorded, compared to 146 million
downloads in the March quarter and 93 million downloads in the December quarter.
Data from NPD, the parent company of Media Metrix, indicates that approximately
92% of the Web population, or more than 240 million users, can view Macromedia
Flash content. The data also reports that over 50%, or 135 million users, can
view Shockwave content.
eBusiness Solutions
During the quarter, the Company shipped Macromedia Dreamweaver Objects for Aria,
Macromedia LikeMinds eMail, and new versions of both Macromedia Aria and
Macromedia LikeMinds. The Company also announced strategic agreements with Art
Technology Group, Broadvision, Business Objects, and IBM. New customers for our
server solutions during the quarter included Fingerhut, iCollege.com, Musicland,
and Thomson Consumer Electronics.
shockwave.com Membership Tops 21 Million
shockwave.com, the Internet entertainment destination, has registered more than
21 million members, up from 17 million members at the end of April 2000. An
average of more than 60,000 new members came to the site each day to register
and view the latest in the Web's best entertainment over the last quarter.
* Pro forma net income exclude acquisition-related charge as well as non-cash
charges related to deferred compensation, amortization of intangibles, and
preferred stock accretion. Pro forma net income presentation excluding such
charges differs from net income presented according to generally accepted
accounting principles because they exclude these costs. In addition, the pro
forma results reflect an effective tax rate of 23% for the three month period
ended June 30, 2000 and 26% for the three month period ended June 30, 1999.
The financial results for the three months ended June 30, 1999 have been
restated to reflect the acquisitions of ESI Software, Inc. and Andromedia, Inc.,
both of which were accounted for as poolings of interests.
Except for the historical information contained herein, matters discussed in
this news release may be considered forward looking statements that involve
risks and uncertainties, including customer acceptance of new products and
services and new versions of existing products, impact of competition, those
related to unproven business models associated with the shockwave.com consumer
business, the risk of integrating newly acquired technologies and products, the
risk of delay in product development and release dates, quarterly fluctuations
of operating results, risks of product returns, the economic conditions in
significant international markets, investments in new business opportunities and
the other risks detailed from time to time in the Company's SEC reports,
including without limitation its quarterly reports on Form 10-Q and its annual
report on Form 10-K for the year ended March 31, 2000 as they may be updated or
amended with future filings. The actual results the Company achieves may differ
materially from any forward looking statements due to such risks and
uncertainties.
About Macromedia
Macromedia is passionate about what the Web can be. Its award-winning products
empower developers to provide the most engaging experience on the Web, and
enable more effective e-business. Headquartered in San Francisco, Macromedia has
more than 1,200 employees worldwide and is available on the Internet at
www.macromedia.com. Macromedia also hosts one of the most engaging entertainment
sites on the web at shockwave.com.
NOTE: Product names are trademarks or registered trademarks of Macromedia, Inc.,
as indicated. Other product names or services may be trademarks or service marks
of others.
MACROMEDIA AND SUBSIDIARIES
Pro Forma Consolidated Condensed Statements of Operations
(In thousands, except per share data)
(unaudited)
Three months ended
June 30,
2000 1999
Revenues $94,764 $51,232
Cost of revenues 10,111 5,754
Gross profit 84,653 45,478
Operating expenses:
Sales and marketing 38,886 23,276
Research and development 24,915 12,990
General and administrative 8,901 5,810
Total operating expenses 72,702 42,076
Operating income 11,951 3,402
Other income, net 3,633 1,351
Minority interest in losses of shockwave.com 3,247 --
Income before income taxes 18,831 4,753
Provision for income taxes 4,331 1,236
Net income $14,500 $3,517
Net income per share
Basic $0.29 $0.08
Diluted $0.26 $0.07
Shares used in computing net income per share
Basic 49,462 42,150
Diluted 56,650 52,718
The above unaudited pro forma consolidated condensed statements of operations
exclude the effects of the following:
-- Acquisition-related expenses
-- Non-cash compensation charges
-- Amortization of intangibles
-- Preferred stock accretion
The above pro forma results also reflect an effective tax rate of 23% for the
three month period ended June 30, 2000 and 26% for the three month period ended
June 30, 1999.
The results for the three months ended June 30, 1999 have been restated to
reflect the acquisition of ESI Software, Inc. which was completed during the
quarter ended September 30, 1999, and Andromedia, Inc., which was completed
during the quarter ended December 31, 1999. Both acquisitions were accounted for
as poolings of interests.
MACROMEDIA AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
(In thousands, except per share data)
(unaudited)
Three months ended
June 30,
2000 1999
Revenues $94,764 $51,232
Cost of revenues 10,111 5,754
Gross profit 84,653 45,478
Operating expenses:
Sales and marketing 38,886 23,276
Research and development 24,915 12,990
General and administrative 8,901 5,810
Acquisition-related expenses 1,674 --
Non-cash compensation 1,923 248
Amortization of intangibles 316 257
Total operating expenses 76,615 42,581
Operating income 8,038 2,897
Other income, net 3,633 1,351
Minority interest in losses of shockwave.com 3,922 --
Income before income taxes 15,593 4,248
Provision for income taxes 3,586 2,521
Net income 12,007 1,727
Preferred stock accretion -- (164)
Net income attributable to common stockholders $12,007 $1,563
Net income per share
Basic $0.24 $0.04
Diluted $0.21 $0.03
Shares used in computing net income per share
Basic 49,462 42,150
Diluted 56,638 50,233
The results for the three months ended June 30, 1999 have been restated to
reflect the acquisition of ESI Software, Inc. which was completed during the
quarter ended September 30, 1999 and Andromedia, Inc., which was completed
during the quarter ended December 31, 1999. Both acquisitions were accounted for
as poolings of interests.
MACROMEDIA AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(In thousands)
(unaudited)
ASSETS June 30, March 31,
2000 2000
Current assets:
Cash, cash equivalents and short-term investments$212,015 $187,036
Accounts receivable, net 36,772 41,883
Inventory, net 1,515 1,349
Prepaid expenses and other current assets 13,962 12,944
Deferred tax assets 8,206 7,812
Total current assets 272,470 251,024
Land and building, net 18,805 18,982
Fixed assets, net 53,701 41,871
Other assets 38,191 27,482
TOTAL ASSETS $383,167 $339,359
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,079 $4,988
Accrued liabilities 57,347 53,842
Unearned revenue 9,941 10,044
Total current liabilities 70,367 68,874
Other non-current liabilities 377 321
Total liabilities 70,744 69,195
Minority interest 17,352 15,888
Stockholders' equity 295,071 254,276
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $383,167 $339,359
SOURCE Macromedia, Inc.
CONTACT: Kimberly Leo, 415-252-2000, or fax, 415-703-0626, or
IR@macromedia.com
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KEYWORD: California
INDUSTRY KEYWORD: MLM
CPR
SUBJECT CODE: ERN
OTC
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