Macromedia announced its second quarter 2003 results yesterday, returning a net income of $7.8 million for the quarter.

Net revenues stood at $85.4 million, compared to $87.1 million in the year-ago quarter. However, once Macromedia's figures were adjusted according to the generally accepted accountancy principles (GAAP) adopted by companies in the wake of the WorldCom scandal, the company returned a net loss of $11.7 million. This compares favourably to the company's $70.7 million loss in the year ago quarter.

Company chairman Rob Burgess said: "The next generation of digital experiences is gaining traction, and the Macromedia MX product family is resonating with customers and partners.

"While we continue to invest strongly in expanding our opportunities, it's nice to be back on track and deliver reasonable operating performance," he said.

Looking forward, the company expects revenues to be between $78-$82 million, returning an operating profit margin of between 4-8 per cent. The company expects increased revenues and profit in the following quarter.

Application of the GAAP meant the company suffered in the quarter from payments associated with restructuring, litigation, investment losses and gains; as well as non-cash charges for stock compensation and the amortization of intangible asset.