Macromedia (Nasdaq: MACR) plungedUS$5.43 to $21.15 in morning trading Thursday, after the company, whichprovides Web site design and other Internet software, reported quarterlyresults that were below expectations and declined to provide a forecast for the current year.
Analysts at two firms reportedly downgraded Macromedia shares following the news.
“Though the second half of our year was weaker than the first, overall itwas still a pretty good year,” Macromedia chairman and chief executive officer RobBurgess said.
Macromedia said that it had pro forma income of $8.4 million, or 15 cents pershare, in the fourth quarter ended March 31st, down from $16.8 million, or30 cents, in the same period a year earlier and below the 20 cents per shareexpected by analysts.
Revenue edged up to $89.1 million from $86.4 million.
Pro forma results exclude acquisition-related charges, research anddevelopment costs, losses on investments and other items. Macromediareported a net loss of $21.77 million, or 42 cents per share, for the fourthquarter, compared with net income of $5.54 million, or 12 cents, a yearearlier.
For the fiscal year, Macromedia said that pro forma income rose 56 percent to$66.9 million, or $1.18 per share, as revenue advanced 47 percent to $376.4million.
The company declined to provide an outlook for the year ahead.
“While wecontinue to see great opportunities for Macromedia, the economic climate hassignificantly reduced our visibility into future financial results,” Burgesssaid.
That lack of “visibility” reportedly prompted analysts at Tucker Anthony tolower their rating on Macromedia shares to market perform from buy, andMoors Cabot was said to have downgraded Macromedia to hold from buy.
While maintaining an outperform rating on the stock, Salomon SmithBarney reportedly slashed estimates for the current fiscal year.