Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : EARNINGS REPORTING - surprises, misses & more -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (472)	1/21/2001 10:34:07 PM
From: 2MAR$	Read Replies (1) \| Respond to of 762

MACR ($31) Macromedia shares dive 31 pct on weak sales outlook (UPDATE: Adds closing share price) LOS ANGELES, Jan 17 (Reuters) - Shares of Web design software maker Macromedia Inc. (NasdaqNM:MACR - news) fell to their lowest levels in 1-1/2 years on Wednesday, a day after it warned of anemic growth in its current quarter and announced a merger with software company Allaire Corp. (NasdaqNM:ALLR - news). Although the company met third-quarter earnings estimates, it warned of a slowdown in fourth quarter revenue growth due to an uncertain economy. Macromedia shares ended down 31 percent or $13-11/16 to $30-5/16, reaching their lowest levels since August 1999. The shares were the largest losers on the Nasdaq in percent terms, and have fallen from $120-7/8 in July. The San Francisco-based company posted pro forma earnings of $16.2 million, or 29 cents a share, compared with the First Call consensus analyst estimate of 27 cents. Banc of America Securities downgraded the stock to a buy rating from its previous strong buy recommendation, saying it should remain weak in the near-term after the company's revenue outlook. Analyst Greg Vogel also cited concerns over the Allaire merger. ``We believe that the stock will remain somewhat weaker near-term due to materially lower revenue guidance and uncertainty surrounding the Allaire acquisition,'' Vogel wrote in a report. Macromedia said it would acquire Allaire, a Web application platform developer, for $360 million. Allaire shares gained 9/16, a 7 percent rise, to $8-1/2 on the Nasdaq. While many analysts said the deal looked good in the long term, they expressed some concern over Allaire's profitability. The company reported a December quarter loss of $8.9 million, or 33 cents a share. Robertson Stephens analyst Lowell Singer also downgraded Macromedia to a long-term attractive rating from a previous buy rating. Singer noted that the revenue outlook for Macromedia, even after the merger with Allaire, was still 8 percent lower than Macromedia's prior revenue estimates. Email this story - Most-emailed articles - Most-viewed articles