Macromedia’s net income for its fiscal second quarter was $9.82 million, compared with losses of $11.66 million at the same time last year.
The company said it earned $10 million compared with earnings of $7.8 million in the same quarter last year.
The company was close to meeting its revenue expectation of between $85 and $90 million – revenue rose to $89.9 million, from $85.9 million in Q2 last year.
Macromedia chairman and CEO Rob Burgess said: "With the continuing explosion in digital devices for all kinds of users and for so many different applications, our market opportunity has never been greater.
“This quarter, our new products and services really started to gain traction as our solution set broadens. We are confident our leading brands such as Dreamweaver and Flash will continue to play greater roles in enabling better user experiences".
Macromedia now predicts a third-quarter revenue of between $85 and $95 million, compared with the $82.6 million it generated in the same quarter last year. However, this revenue target is below current Wall Street expectations of $97.6 million.
In addition the company lowered its revenue expectations for fiscal 2004 below its own previous guidance as well as Wall Street's estimates. The company says it expects its revenue for fiscal 2004, which ends in March, to increase between 5 per cent and 10 per cent.
The company also announced that it will pay $65 million in cash and stock for eHelp, a manufacturer of help authoring tools. The deal is expected to occur during the December quarter.