Macromedia announced a net loss of $305.9 million (under US accounting principles) for its fiscal year 2002 yesterday.
Despite this, the company is optimistic as it begins its new product cycle, CEO Rob Burgess said: “This quarter, we kicked off a major new product-cycle with the introduction of Flash MX.
“Our MX family of products will empower millions of developers to create rich Internet applications that radically enhance the user experience. We are all very encouraged about the initial market-reaction to these great new products.”
Growth expected Macromedia’s fourth-quarter 2002 results, returned revenues of $75.6 million, compared to $89.1 million in the same quarter last year. The company announced a net fourth-quarter loss of $80.5 million, compared to a net loss of $21.8 million in the same quarter last year.
Revenues for the fiscal year ended March 31, 2002 totalled $324.8 million, compared with revenues of $376.4 million for the same period last year. Pro forma net loss for fiscal year 2002 was $28.1 millionm compared with pro forma net income of $66.9 million. These Macromedia results consolidate the operating results of AtomShockwave. This site distributes game, film, and animation content.
Macromedia expects revenue-growth to resume in the first fiscal quarter 2003, based on its upcoming product cycle – predicting them to rise ten per cent on a sequential basis. The company expects a return to profitability on a pro forma basis in the June quarter.
US accounting practice requires that a company’s results are adjusted for acquisition-related expenses; acquired in-process research and development; non-cash compensation costs; restructuring; impairment and amortization (gradual reduction in value over time) of intangible assets; net losses on investment; and litigation settlements.