Press Releases


Revenues up 25 percent and net income more than doubles year-over-year

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

Three Months Ended June 30

  2004 2003
Net Revenues $103.6 $83.1
Net income per diluted share - GAAP $0.19 $0.10
Net income per diluted share – pro forma $0.20 $0.11

Download Q105 Financials - Excel file (49K)

San Francisco, CA—July 28, 2004—Macromedia, Inc. (Nasdaq: MACR) today reported financial results for its fiscal first quarter ended June 30, 2004. Net revenues for the quarter were $103.6 million, a 25 percent increase compared to the $83.1 million reported for the same period last year.

Net income for the three months ended June 30, 2004 was $13.9 million, or $0.19 per diluted share, compared to $6.7 million, or $0.10 per diluted share, for the same quarter a year ago. Pro forma net income for the three months ended June 30, 2004 was $14.7 million, or $0.20 per diluted share, compared to $7.1 million, or $0.11 per diluted share, for the same quarter a year ago.

"This was a good solid quarter, made so by our continuing leadership in web design and our terrific growth in mobile and business solutions," said Rob Burgess, chairman and CEO, Macromedia. "The Internet is changing yet again as non-PC devices like phones, TVs, and other interesting machines play an increasingly important role in the networked world. Macromedia is well positioned and totally excited to help enable these experiences to be the best they can possibly be. We are looking forward to lighting up the new digital world."

Business Outlook - Second Quarter Fiscal Year 2005

For the quarter ending September 30, 2004, Macromedia expects net revenues to be in the range of $103 to $108 million, with pro forma gross margins in the 91 to 93 percent range, and a pro forma operating profit margin between 16 and 18 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 months ended June 30, 2004 and 2003, differ from corresponding results reported under Generally Accepted Accounting Principles (GAAP) in the U.S. due to adjustments for the following items reported in its consolidated results from operations:

Pro forma results for the three months ended June 30, 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 first quarter of fiscal year 2005 financial results will be discussed in a Macromedia Breeze presentation available at In addition, a teleconference is scheduled to begin at 2 p.m. Pacific Time / 5 p.m. Eastern Time on Wednesday, July 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.