MetaCreations has reported a loss of $3.3 million for the first quarter of 2000.

The net loss from continuing operations for the quarter, which ended March 31, was $4.5 million, compared to net income from continuing operations of $0.9 million in the same quarter last year.

The company said its balance sheet remained strong as of March 31, with cash and investments of $40.5 million and equity of $41.6 million.

The results were dominated by MetaCreations' decision to divest its graphic software business and focus on its Metastream technology and licensing model. It has centralized its MetaCreations and Metastream operations into a single facility in New York, and closed all its international offices. The remaining two California offices will also be closed by June.

All of its graphics software has now found new homes. The last to go was Headline Studio, an animated GIF creation package. This has gone to Fractal.com – a new company co-founded by Mark Zimmer, former MetaCreations CEO and author of Painter.