Macromedia's first-quarter results saw the company return a profit of $6.7 million, suggesting some recovery in the Internet sector.

Macromedia's recent cost-cutting helped mitigate a one per cent decline in year-on-year net revenues in the quarter, It lost $2 million on revenues of $84.3 million in the year-ago quarter.

Macromedia chairman and CEO Rob Burgess said: "While our core products continue to lead the industry, our new offerings, like Contribute 2, Breeze Live and Flash for mobile are starting to really gain traction. We are all very excited about all the new software and solutions we are bringing to market to streamline the process of making great digital experiences."

Dreamweaver MX remains the company's strongest-selling product. Macromedia describes its Studio MX suite as "the most successful" in the company's history. Contribute has also been well-received, the company said, shifting 70,000 units. A Mac OS X version of Contribute ships in August.

Macromedia's move to bring its Flash Player technology to mobile phones has also gained traction. Flash is now installed in handsets from NTT DoCoMo, Mitsubishi, Sony Ericsson, Sharp, Fujitsu and NEC.

Macromedia expects to see Flash appear in diverse consumer devices, including children's toys and home automation systems, the company said.

The company expects second-quarter revenues of $85 million to $90 million, and revenue growth of between 10-20 per cent for its fiscal year, which ends March 2004.