Macromedia Cruises Past Estimate

Macromedia(MACR Quote) said second-quarter earnings rose 29% from a year ago, as higher revenue offset expenses related to the company's acquisition by Adobe(ADBE Quote).

The software company earned $20.4 million, or 25 cents a share, in the quarter, compared with $14.5 million, or 20 cents a share, a year ago. Excluding items including the Adobe expense, Macromedia earned $24.9 million, or 30 cents a share, in the latest period.

Analysts were expecting earnings of 25 cents a share on the latter basis. Macromedia's second-quarter sales rose 18% to $127.9 million in the quarter, compared with the Thomson First Call consensus of $124.1 million.

"With the advancement of rich Internet application development, new mobile adoption on the Flash Platform, and the launch of Studio 8, this has been an outstanding quarter," the company said.

For the quarter ending Dec. 31, Macromedia expects revenue of $130 million to $140 million, with gross margins of 90% to 92% and operating profit margin of 20% and 23%, excluding merger items. Analysts were forecasting earnings of 30 cents a share on sales of $133.6 million.

Macromedia, which agreed in April to be acquired by Adobe, rose 5 cents to $44.05 after hours.