Macromedia warns of lower earnings

Software maker Macromedia warned Wednesday that it won't return to profitability this quarter, as it had expected, because of the sluggish economy. Based on preliminary data, Macromedia estimated that revenue for its fiscal third quarter ending Dec. 31 will be $70 million to $75 million--also below its prior expectations.

"While our short-term results continue to be affected, we are confident in our products and our long-term strategy for growth," Macromedia CEO Robert Burgess said in a statement. San Francisco's Macromedia plans to report final results for its third quarter on Jan. 16.