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Folks, if earnings are not positive then they are not bad either. Few points to consider:
- Zacks estimate was -0.03
- Montgomery analyst expected -0.08 (read his article below)
- Revenue grew significantly from previous quarter
- Cost cutting on full swing
- Buyback program
- Late shipment of Director and other products did not generate enough
revenue for this quarter
- This was Apple to PC transition which MACR seemed to have done fairly well
- Recent business parterships with PointCast, Sun Java and Microsoft Network
Having said that I will watch this until next quarter (which IMHO should be big turn around) and then go from there...
good luck to all.
BTW I will not be surprised tomorrow if sell off stops at $10.
Article from Montgomery:
NEW YORK (Dow Jones)--Macromedia Inc. (MACR)
jumped 14.6% on speculation that its fiscal first quarter
results will come in better than the consensus estimate of a
loss of 2 cents a share.
"There may be some speculation out there that
Macromedia has some profitability in the quarter," said
Greg Vogel, an analyst with Montgomery Securities Inc.
His estimate for the quarter ended June 30 is for a loss of
8 cents a share, compared with earnings of $7.1 million, or
18 cents a share, a year earlier. Macromedia is expected
to report earnings after markets close on Wednesday.
The upgrade of Macromedia's flagship product, Director,
which started shipping May 27, should provide some
revenue "re-acceleration," Vogel said. Director is a
multimedia software development tool used often to create
Web pages.
However, Vogel said, there's no way to tell the Director
upgrade's impact on the quarter because management of
the San Francisco software developer has not been talking
to Wall Street.
"There are a lot of rumors going around. I don't think
anyone really knows" what the company will report, he
said.
Recently the stock was up 1 3/8, or 13.4%, to 11 5/8,
after reaching as high as 11 7/8 earlier. Volume was heavy
at 3.6 million shares, compared with the 491,700 share
daily average on Nasdaq.
(courtsey Wall Street) |
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