Company Press Release
Source: Macromedia, Inc.
Macromedia Reports First Quarter 1998 Results and Announces Stock
Buyback Program
SAN FRANCISCO, July 30 /PRNewswire/ -- Macromedia (Nasdaq:MACR) today announced revenues of $27,329,000 for
the period ended June 30, 1997, down from revenues of $35,010,000 in the same period one year ago. The company
reported a net loss of $1,239,000, or $0.03 per share in the first quarter compared with net income of $7,120,000, or $0.18
per share posted in the same period a year ago.
During the quarter, Macromedia shipped new versions of three key products -- Director 6, Authorware 4 and Flash 2. Both
Director 6 and Authorware 4 shipped in the last month of the quarter.
The company continued to see a shift in its platform mix towards the Windows platform. Revenues from Windows and
cross-platform products represented 51% of total revenue, as compared to 44% during the same period last year.
Macintosh-related revenue declined to 49% of total revenue, as compared to 56% during the same period last year.
Total operating expenses of $25,651,000 were reduced by more than 16% from the previous quarter, while up from
$20,623,000 in the same period a year ago.
``We are pleased with the response to our new products and the progress we have made on the expense side of our business.
Our balance sheet remains strong with over $91 million in cash and short-term investments and with accounts receivable at 26
days sales outstanding,'' said Rob Burgess, president and chief executive officer of Macromedia.
Macromedia recently added several new members to its senior executive team: Brian Allum, formerly president of
Alias/Wavefront, a wholly-owned subsidiary of Silicon Graphics, Inc., joined the company as senior vice president of revenue;
Steve King, formerly vice president and general manager, Asia/Pacific of Lotus Development Corporation, as vice president of
marketing; and Steve Guttman, formerly vice president of marketing of Fractal Design Corporation, as vice president of
product marketing, Internet and Multimedia Authoring.
``I am pleased with the management team we have assembled under Rob's leadership,'' said Bud Colligan, chairman of
Macromedia. ``We are making good progress in putting in place the people and products which are critical to our future.''
``As we look forward, we see many opportunities for growth. We continue to build a community of both authors and viewers
of digital media content with whom we can have a strong and widening economic relationship,'' said Burgess. ``Our plan is to
focus the company on operating efficiency in the short term while investing to change and grow the business over the long
term.''
Stock Repurchase Program
Macromedia today also announced that the Board of Directors has authorized the repurchase of up to 2 million shares of its
common stock, or approximately 5% of the company's total outstanding shares, to partially offset the dilutive effects of the
company's Equity Incentive Plan. From time to time, at market prices and as market and business conditions warrant, the
company may repurchase such shares for cash in open market, negotiated or block transactions. No time limit was set for
completion of the program and there can be no assurance that such share purchase program will be completed.
Matters discussed in this news release that may be considered forward looking statements, such as statements concerning
opportunities for future growth, involve risks and uncertainties, including those related to quarterly fluctuations of operating
results, dependence on the Macintosh platform, impact of competition, the developing multimedia, Internet and online services
markets, the risk of delay in product development and release dates, customer acceptance of new product versions, risks of
product returns, and the other risks detailed from time to time in the Company's SEC reports, including its quarterly report on
Form 10-Q for the quarter ended December 31, 1996 and its annual report and Form 10-K for the year ended March 31,
1997. The actual results the Company achieves may differ materially from any forward looking statements due to such risks
and uncertainties.
About Macromedia
Headquartered in San Francisco, Macromedia is a leading provider of software tools and technologies for the design, delivery
and display of digital media. Macromedia's award-winning products for Windows, Macintosh and the Internet are available to
business, education, and government customers worldwide. Additional information on Macromedia is available on the Internet
at macromedia.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
Consolidated Statements of Operations
(In thousands, except per share data)
Three months ended June 30,
(unaudited)
Revenues 1997 1996
Cost of revenues $27,329 $35,010
4,568 5,434
Gross profit 22,761 29,576
Operating expenses:
Sales and Marketing 14,340 12,186
Research and development 8,701 6,912
General and administrative 2,610 1,525
Total operating expenses 25,651 20,623
Operating income (loss) (2,890) 8,953
Other income, net 1,094 1,366
Income (loss) before income taxes (1,796) 10,319
Provision (benefit) for income taxes 557 (3,199)
Net income (loss) $(1,239) $7,120
Net income (loss) per share $(0.03) $0.18
Shares used in computing
net income per share 37,866 40,572
MACROMEDIA AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
June 30, 1997 March 31, 1997
ASSETS (unaudited) (audited)
Current assets:
Cash and short-term investments $91,264 $102,451
Accounts receivable, net 7,928 2,315
Inventory 1,064 1,882
Prepaid expenses and other
current assets 3,233 3,407
Deferred tax assets, short-term 7,537 7,537
Total current assets 110,926 117,592
Fixed assets, net 38,032 34,150
Other assets 4,480 4,185
Deferred tax assets, long-term 969 970
TOTAL ASSETS $154,407 $156,897
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $12,916 $14,486
Accrued liabilities 6,270 7,537
Unearned revenue 3,170 2,958
Total current liabilities 22,356 24,981
Other long-term liabilities 192 ---
Stockholders' equity 131,859 131,916
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $154,407 $156,897
SOURCE: Macromedia, Inc.
Contact: Jack Parsons, Chief Financial Officer of Macromedia, Inc. 415- 252-2000, or fax, 415-252-2115
More news for referenced ticker symbols: MACR, and related industries: computer.
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