Macromedia is set to restate financial results for fiscal 1999 to 2004 because it says it understated a liability related to employee sabbaticals by $6.1 million.

The company also admitted it has to adjust its income tax provision for foreign tax bills by $2.1 million, which affects the fiscal years from 2002 to 2004.

The news has not concerned Adobe, who will take over Macromedia in a $3.4 billion all-stock transaction.

Adobe's CFO Murray Demo claims that company are well aware of the financial state of Macromedia, he told Associated Press: "As part of the acquisition process, we performed a customary due-diligence effort and understood Macromedia's financial condition in moving ahead with the transaction."