Here's a fuller report. Was there a conference call and did anyone listen to it? The numbers make it look like they're turning around a little bit, but I wonder what the revenue picture will look like this quarter. Will we begin seeing serious Dreamweaver sales?
Hope they don't get battered and fried tomorrow.
carl
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Macromedia Reports Second Quarter Results
PR Newswire, Thursday, October 23, 1997 at 17:12
SAN FRANCISCO, Oct. 23 /PRNewswire/ -- Macromedia (NASDAQ:MACR) today
announced the results of its second quarter ended September 30, 1997. For the
quarter, revenues were $29,166,000, a decrease of 6% compared with the second
quarter a year ago, and a 7% sequential increase from the previous quarter
ended June 30, 1997. Net income was $313,000, or $0.01 per share, compared
with net income of $4,610,000, or $0.12 per share, earned in the second
quarter of fiscal 1997. In the previous quarter ended June 30, 1997, the
Company reported a net loss of $1,239,000, or $0.03 per share.
For the six month period ended September 30, 1997, revenues totaled
$56,495,000, down from $66,035,000 reported in the same period one year ago.
The Company's net loss for the six months ended September 30, 1997 was
$926,000, or $0.02 per share, as compared with net income of $11,730,000, or
$0.29 per share, reported in the same period a year ago.
"Our plan is on track," said Rob Burgess, president and CEO of Macromedia.
"We have focused on our three core markets, articulated some of our new
product plans, and solidified our senior management team. We are now focused
on executing our agenda and bringing our exciting new products to market."
During the quarter, Windows and cross-platform product revenues increased
approximately 13% as compared with the same period a year ago and accounted
for 59% of total revenue. Macintosh-related revenue represented 41% of total
revenue and declined 24% from the same period a year ago. International sales
increased to 56% of total revenue during the second quarter of fiscal 1998.
NEW PRODUCT ANNOUNCEMENTS
From October 8-10, 1997, Macromedia held its International User Conference
and Exhibition at the Moscone Center in San Francisco, where over 6,800 Web
and multimedia developers, graphics and learning professionals attended.
During the conference, Macromedia unveiled several key initiatives of the
Company's Internet strategy. Together, the initiatives make the delivery of
interactive media easier, more efficient and more compelling for the typical
user.
At the conference, Macromedia debuted Dreamweaver, a new visual Web
authoring tool created for Web development professionals with in-depth support
for Dynamic HTML. Using Dreamweaver, Web professionals can combine the power
and productivity of a visual tool with the control and flexibility of an HTML
text editor. The product will be available for an estimated street price of
$499.
Also at the conference, the Company announced its Universal Media
Initiative. Under this initiative, the company is focused on enabling
developers to create web multimedia which is always viewable, both with and
without plugins. The first announced steps in this initiative are Java
playback for both Flash 2 and Director 6, and AfterShock -- an authoring
product which lets developers match their end-users' browser configurations
with the appropriate playback technology.
ACQUISITION
The Interactive Learning Division of Macromedia, which is focused on
developing tools and enterprise solutions for corporate and academic learning,
made several announcements at the conference including the acquisition of
Solis, Inc., a leader in open on-line management systems. The acquisition was
completed effective October 6, 1997, and Macromedia is now offering the Solis
Pathway product line as Macromedia Pathware. Terms of the transaction were
not disclosed.
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 June 30,
1997 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 www.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 Income
(In thousands, except per share data)
Three months ended Six months ended
September 30, September 30,
(unaudited) (unaudited)
1997 1996 1997 1996
Revenues 29,166 $ 31,025 $ 56,495 $ 66,035
Cost of revenues 5,307 4,505 9,875 9,939
Gross profit 23,859 26,520 46,620 56,096
Operating expenses:
Sales and marketing 13,834 12,352 28,174 24,538
Research and development 7,965 7,125 16,666 14,037
General and administrative 2,757 1,588 5,367 3,113
Total operating expenses 24,556 21,065 50,207 41,688
Operating income (loss) (697) 5,455 (3,587) 14,408
Other income, net 1,151 1,228 2,245 2,594
Income (loss) before income
taxes 454 6,683 (1,342) 17,002
Benefit (provision) for
income taxes (141) (2,073) 416 (5,272)
Net income (loss) $ 313 $ 4,610 $ (926) $ 11,730
Net income (loss) per share $ 0.01 $ 0.12 ($ 0.02) $ 0.29
Shares used in computing
net income per share 40,236 40,013 37,975 40,648
MACROMEDIA AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
September 30, 1997 March 31, 1997
ASSETS (unaudited) (audited)
Current assets:
Cash and short-term investments $ 86,499 $ 102,451
Accounts receivable, net 7,709 2,315
Inventory 359 1,882
Prepaid expenses and other current assets 3,339 3,407
Deferred tax assets, short-term 7,537 7,537
Total current assets 105,443 117,592
Fixed assets, net 39,542 34,150
Other assets 8,807 4,185
Deferred tax assets, long-term 970 970
TOTAL ASSETS $ 154,762 $ 156,897
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,483 $ 14,486
Accrued liabilities 8,861 7,537
Unearned revenue 1,181 2,958
Total current liabilities 21,525 24,981
Other long-term liabilities 164 --
Total liabilities 21,689 24,981
Stockholders' equity 133,073 131,916
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 154,762 $ 156,897
SOURCE Macromedia, Inc.
-0- 10/23/97
/CONTACT: Jack Parsons, Chief Financial Officer of Macromedia,
415-252-2000, or fax, 415-252-2115/
Companies or Securities discussed in this article:
Symbol
Name
NASDAQ:MACR
Macromedia Inc
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