Macromedia's third quarter 2002 results reveal a net loss of $42.9 million, and that revenues declined nearly 30 per cent from the same quarter last year – reaching $73.3 million.

As industry observers had expected, the company has suffered from the fallout of the bursting of the Internet bubble, as most of its products are focused on Internet development and deployment. Poor economic conditions have exacerbated these problems.

Responding, Macromedia chairman and CEO Rob Burgess said: "The economy continues to affect our short-term results, but not our optimism about the future."

Shrinking revenue Revenues for the nine months ended December 31, 2001, totalled $249.1 million, compared to $287.4 million in the same nine-month period a year ago. This returned a $22 million net loss for the period to December 31, 2001.

Looking forward, Burgess explained: "We are focused on delivering a major new product cycle that will empower our customers to realize the promise of the next-generation of the Internet." Macromedia is expected to deliver major upgrades to its products during the rest of this year. The company has announced an immediately available update to Shockwave-authoring suite, Director.

The company confessed that it expects its fourth quarter 2002 revenues to be "sequentially flat", that it continues to "focus on operational efficiencies" and expects to return to profitability in the June 2002 quarter. (Q1 FY 2003).

Macromedia's stock fell 11.38 per cent yesterday, closing at $17.36. It lost an additional $0.20 on the after-hours market.