Macromedia Beats by a Penny

Second-quarter guidance also is better than expected.
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Updated from 4:33 p.m. EDT

Macromedia

(MACR)

, the company being acquired by software maker

Adobe Systems

(ADBE) - Get Report

, posted fiscal first-quarter earnings Wednesday that beat Wall Street estimates by a penny.

The company's guidance for the second quarter, meanwhile, straddled current targets.

Under generally accepted accounting principles, San Francisco-based Macromedia reported net income of $15.2 million, or 19 cents a share, in the fiscal first quarter, which ended June 30. A year earlier, Macromedia, whose Flash products lets users add video and animation to Web sites, reported net income of $13 million, or 17 cents a share.

Excluding charges, Macromedia earned non-GAAP net income of $18.1 million, or 22 cents a share, in the first quarter, surpassing the consensus estimate from Thomson First Call by a penny. Macromedia posted non-GAAP net income of $13.7 million, or 18 cents a share, a year earlier.

Macromedia's net revenue rose 13% to $116.8 million, from $103.6 million a year earlier. That modestly exceeded the consensus estimate of analysts calling for $114.1 million in sales and the company's guidance, which projected that sales would be flat to slightly down sequentially from $116.1 million in the March quarter.

Looking forward, Macromedia expects second-quarter revenue to range from $120 million and $125 million, with gross margins ranging from 91% to 93% and operating profit margin ranging from 17% to 19% excluding merger-related costs. Analysts last projected that Macromedia would post $122.2 million in sales and 25 cents a share in earnings in the second quarter.

On a post-close conference call, Macromedia reiterated previous guidance for the fiscal year ending March 31, 2006, projecting net revenue exceeding $500 million and an operating profit margin trending toward 20% on a non-GAAP basis during the course of the year.

Macromedia also said it would hold a special shareholders meeting Aug. 24 to vote on the company's merger with Adobe.

The acquisition, awaiting clearance from the Department of Justice, is expected to close this fall. Adobe, the maker of the Acrobat document software management system and photo-editing software PhotoShop, will give Macromedia shareholders 0.69 shares of Adobe stock for every Macromedia stock held.

At the time it was

announced in April, the deal was valued at $3.4 billion and awarded Macromedia shareholders a 25% premium on their shares.

Since then, Macromedia shares have appreciated considerably. Shares of Macromedia fell 9 cents to close the regular session at $39.62. Shares recently climbed to $39.95 in after-hours trading.