MetaTools Sees Earnings Below Estimates

Carpinteria-based MetaTools Inc. said first-quarter results will fall below analysts’ expectations due to delayed shipments and lower sales of its computer graphics software. The company also said it expects to take a second-quarter charge of about $7 million to finance the acquisition of closely held Spectacular International to expand its 3-D animation and graphic design business. MetaTools expects to break even or earn 1 cent a share on revenue of between $6.1 million and $6.2 million. It reported net income of $724,000, or 6 cents a share, on revenue of $5.5 million in the year-earlier quarter. Analysts’ average estimate for earnings was 6 cents a share. MetaTools blamed the earnings drop on a delay in shipping its digital photo product, Kai’s Photo Soap, until the second quarter. Its shares fell $1.19 to close at $6.94 on Nasdaq.