Macromedia is lowering its financial outlook for its third quarter, ending on December 31.

"Tough economic conditions" have been cited for the revision, which is based on preliminary data results. The company estimates software revenues for the third fiscal quarter 2002 to be between $70 and $75 million.

The company added that the sustained economic climate meant that a return to profitability was unlikely by the end of this fiscal year.

Rob Burgess, chairman and chief executive officer of Macromedia said: "While our short-term results continue to be affected, we are confident in our products and our long-term strategy for growth." Macromedia will report its third fiscal quarter 2002 results on January 16, 2002.