Macromedia has issued a profits warning, declaring that its first-quarter losses may exceed analysts' estimates.
This is the first financial information the company has issued since it acquired Allaire on March 20. Macromedia expects revenues for the quarter to be in the region of $85-90 million, a loss of between $0.15-$0.20 per share. The quarter ends June 30, and results will be announced July 19.
Rob Burgess, Macromedia chairman and CEO, said: "While our products continue to maintain leading market-share, the professional Web-development-tools market is down 20-30 per cent year-on-year this quarter. " Professing confidence in the company's long-term strategy, Burgess added: "Macromedia is taking aggressive steps to control our costs and return the company to profitability."
Macromedia stocks closed at $16.25 on the after hours market, losing $2.47 per share on the days trading.