Macromedia revenues, profits slide

Multimedia software developer Macromedia (MACR) today reported declining revenues and a loss for the first quarter.

Macromedia posted a loss of $1.24 million, or 3 cents per share, compared with earnings of $7.12 million, or 18 cents per share, for the same quarter last year.

The company, however, shrunk its losses from last quarter, when it posted a loss of $15.3 million, or 33 cents per share. (See related story)

Total operating expenses of $25.65 million were reduced by more than 16 percent from the previous quarter, although they were up from $20.6 million in the same period a year ago.

Macromedia has undergone several management changes in the last few months: Brian Allum, former president of Silicon Graphics subsidiary Alias/Wavefront, was hired as senior vice president of revenue; Steve King, formerly with Lotus Development, was hired as vice president of marketing; Steve Guttman, former vice president of marketing at Fractal Design, joined the company as vice president of product marketing for Internet and multimedia authoring.

"I am pleased with the management team we have assembled," Bud Colligan, chairman of Macromedia, said in a statement. "We are making good progress in putting in place the people and products which are critical to our future." (Colligan also sits on the board of directors of CNET: The Computer Network)

In related news, Macromedia also announced a stock repurchase plan. The board of directors of the company authorized the repurchase of up to 2 million shares of its common stock, or approximately 5 percent of the company's total outstanding shares.

Macromedia stock was up almost 13 percent at the markets' close, at 11-9/16.