Macromedia’s stock price dropped more than 20 percent on Thursday after reporting fourth quarter and fiscal year results. Macromedia reported revenues of US$89.1 million, growing slightly year-over-year, a total of about $2.7 million. The company said its pro forma net income for the year was $8.4 million, compared with a 2000 income of $16.8 million.
Company chairman and CEO Rob Burgess expressed optimism about the company’s vision, stating that its recent integration with Allaire — an e-commerce and e-business server development company — has gone well. Burgess admitted that the second half of the year was weaker than the first. In fact, Burgess said that the current economic outlook has “reduced [Macromedia’s] visibility into future financial results,” and refused to provide guidance for the near term.
“We have taken steps to reduce costs in line with the weak economy and remain committed to providing shareholders returns of greater than 20 percent operating margins over time,” said Burgess.
Even though the company reported a small profit unlike so many other tech companies this quarter, Macromedia’s uncertainty about this next quarter was enough to cause some analysts to downgrade the stock and slash estimates. The company’s stock dropped 5.98 to close at 20.60, a 22.50 percent drop. Macromedia’s stock has been in decline from a 52 week high of 120.87 per share.
Macromedia is the publisher of various tools used by Web developers, graphic designers, and publishers including Dreamweaver, Fireworks, Flash, Freehand, and many others.