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Macromedia (Nasdaq: MACR) plunged US$5.43 to $21.15 in morning trading Thursday, after the company, which provides Web site design and other Internet software, reported quarterly results that were below expectations and declined to provide a forecast for the current year.
Analysts at two firms reportedly downgraded Macromedia shares following the news.
"Though the second half of our year was weaker than the first, overall it was still a pretty good year," Macromedia chairman and chief executive officer Rob Burgess said.
Macromedia said that it had pro forma income of $8.4 million, or 15 cents per share, in the fourth quarter ended March 31st, down from $16.8 million, or 30 cents, in the same period a year earlier and below the 20 cents per share expected by analysts.
Revenue edged up to $89.1 million from $86.4 million.
Pro forma results exclude acquisition-related charges, research and development costs, losses on investments and other items. Macromedia reported a net loss of $21.77 million, or 42 cents per share, for the fourth quarter, compared with net income of $5.54 million, or 12 cents, a year earlier.
For the fiscal year, Macromedia said that pro forma income rose 56 percent to $66.9 million, or $1.18 per share, as revenue advanced 47 percent to $376.4 million.
The company declined to provide an outlook for the year ahead.
"While we continue to see great opportunities for Macromedia, the economic climate has significantly reduced our visibility into future financial results," Burgess said.
That lack of "visibility" reportedly prompted analysts at Tucker Anthony to lower their rating on Macromedia shares to market perform from buy, and Moors Cabot was said to have downgraded Macromedia to hold from buy.
While maintaining an outperform rating on the stock, Salomon Smith
Barney reportedly slashed estimates for the current fiscal year.
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