Press Releases

Macromedia Reports Fourth Quarter and Fiscal Year 2004 Results

Macromedia, Inc. (Nasdaq: MACR)
Summary Financial Results
(in millions, except per share data)

Three Months Ended
March 31

Year Ended March 31

  2004 2003 2004 2003
Net Revenues $102 $84 $370 $337
Net income (loss) per diluted share – GAAP $0.20 $0.11 $0.60 $0.03
Net income per diluted share – pro forma $0.22 $0.13 $0.66 $0.40

Download Q404 Financials - Excel file (52K)

San Francisco, CA — April 28, 2004 - Macromedia (Nasdaq: MACR) today reported financial results for its fiscal fourth quarter and fiscal year ended March 31, 2004. Net revenues for the quarter were $102.0 million, a 22 percent increase compared to the $83.6 million reported for the same period last year. Net revenues for fiscal year 2004 were $369.8 million, a 10 percent increase compared to the $336.9 million for fiscal year 2003.

"Macromedia is all about empowering great digital experiences of all kinds so I'm especially pleased that we've broadened our reach to serve business users and consumers, in addition to designers and developers," said Rob Burgess, chairman and CEO, Macromedia. "Providing must-have solutions to these three key markets should fuel increasing financial results and help make the digital experience better for millions of users that we've never touched before."

Net income for the fiscal fourth quarter was $14.7 million, or $0.20 per diluted share, compared to $6.9 million, or $0.11 per diluted share, for the same quarter a year ago. Pro forma net income for the three months ended March 31, 2004 was $15.7 million, or $0.22 per diluted share, compared to $8.4 million, or $0.13 per diluted share, for the comparable quarter a year ago.

Net income for the year ended March 31, 2004 was $41.5 million, or $0.60 per diluted share, compared to a net profit of $1.6 million, or $0.03 per diluted share, for the prior fiscal year. Pro forma net income for fiscal year 2004 was $45.8 million, or $0.66 per diluted share, compared to a pro forma net profit of $24.8 million, or $0.40 per diluted share, for fiscal year 2003.

Business Initiatives Update

During the quarter ended March 31, 2004, Macromedia advanced its agenda across its three major markets serving designer/developers, business users, and consumers.

Designer/Developer Market

Macromedia addressed designers and developers, its largest market, with a new development solution and updates for the MX 2004 products. The Company:

  • improved performance and stability across Studio MX 2004 products;
  • delivered Macromedia Flex, a new presentation server and application framework that enables enterprise development teams to put more effective interfaces on critical business applications;
  • saw initial Flex sales through key channels such as direct sales, system integrators like Cap Gemini Ernst & Young, and OEMs such as Exstream Software, and;
  • released RoboHelp X5, the latest version of the industry standard help authoring tool, with Macromedia branding in January, following the December 2003 acquisition of eHelp Corporation.

Business Users

Solutions for business users built up their presence and capabilities in the fourth quarter. Macromedia:

  • released a new version of Macromedia Breeze, which not only sets a new standard in web conferencing, but also introduces the first true rich web communication system;
  • continued with strong Breeze sales, adding more than 100 customers this quarter, and;
  • recognized Contribute as the most rapidly adopted product in the company's history, with nearly 180,000 users. Notably, more than 50,000 units have already been sold to education customers, a key market segment for Contribute.


There were also advancements in serving the consumer market this quarter, with momentum in the Company's mobile agenda. Macromedia:

  • signed several new partners, including Samsung who will embed Macromedia Flash on Samsung Electronics SMT-7000 series set top boxes;
  • previewed its upcoming Macromedia FlashCast technology for the Symbian OS at the 3GSM World Congress conference, and;
  • with the addition of Juha Christensen as president of mobile and devices, solidified our go-to-market strategy to light up the mobile world with interactive media in the years to come.

Industry Awards

In addition to Macromedia Dreamweaver being recognized for its lifetime achievement as the Jolt Product Hall of Fame Award winner, the following products were also recognized this quarter:

  • Jolt Award for Best Web Development Software, Macromedia Studio MX 2004, Software Development Magazine;
  • Best Web Design & Development Tool, Macromedia Studio MX 2004, the readers of Visual Studio Magazine;
  • Best Enterprise Application Software, Macromedia Studio MX 2004, Government Computer News;
  • Best Products of 2003 - Best of Development Tools, Macromedia Studio MX 2004, PC Magazine;
  • Best Design Tool/HTML Editor - Excellence in Technology Award, Macromedia Dreamweaver MX, Small Business Computing

Business Outlook - First Quarter Fiscal Year 2005

For the quarter ending June 30, 2004, Macromedia expects net revenues to be in the range of $100 to $105 million, with pro forma gross margins in the 91 to 92 percent range, and a pro forma operating profit margin between 16 and 18 percent. For the fiscal year ending March 31, 2005, the Company expects net revenues to be in the range of $410 to $430 million, with pro forma gross margins between 90 and 92 percent, and a pro forma operating profit margin of between 15 and 20 percent. These forward looking statements are subject to risks and uncertainties discussed below and actual results may differ materially.

Pro Forma Results

Macromedia's pro forma results for the three and twelve months ended March 31, 2004 and 2003, differ from corresponding results reported under U.S. GAAP due to adjustments for the following items reported in its consolidated results from operations:

Pro forma results for the three and twelve months ended March 31, 2004 and 2003 reflect an assumed tax rate of 20 percent, reflecting U.S. federal and state income taxes and foreign taxes at rates other than U.S. statutory rates. See the attached reconciliation of GAAP and pro forma results.

Conference Call

Macromedia's fourth quarter and fiscal year 2004 financial results will be discussed in a Macromedia Breeze presentation available at In addition, a teleconference is scheduled to begin at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time on Wednesday, April 28, 2004. After the conclusion of the teleconference, a replay of the conference call will be available on the company's website.

About Macromedia
Experience matters. Macromedia is motivated by the belief that great experiences build great businesses. Our software empowers millions of business users, developers, and designers to create and deliver effective, compelling and memorable experiences – on the Internet, on fixed media, on wireless, and on digital devices.

Cautionary Note about Forward Looking Statements
Matters discussed in this news release may be considered forward looking statements, including those under the heading "Business Outlook" that relate to expected future financial results which involve risks and uncertainties. Such risks and uncertainties include those related to customer acceptance of new products and services and new versions of existing products, the impact of competition, risks associated with integration of acquired products and technologies, the risk of adequately evolving our internal systems and processes in a dynamic business environment, the risk of delays in product development and release dates, new regulations and other government actions that may materially increase the cost of compliance and doing business, risks associated with participating in international markets (including, but not limited to, foreign policies, market instability, and regulations in the applicable foreign countries), the economic condition in the domestic and significant international markets in which the Company operates, dependence on the growth of the Internet, quarterly fluctuations of the operating results, the Company's dependence on distributors, the risk of product returns, the risks associated with potential litigation and intellectual property ownership claims against the Company and others in the industry, volatility of the Company's stock, and other risks detailed from time to time in the Company's filings with the SEC, including without limitation, its annual report on Form 10-K, and its quarterly reports on Form 10-Q, as they may be updated or amended with future filings. The actual results the Company achieves may differ materially from any forward looking statements due to such risks and uncertainties.