Adobe profit falls; investors cheer

The software maker's shares rise, however, because guidance is a bit stronger than expected.

By Charley Blaine Jun 17, 2009 1:28PM

Update: 5 p.m. ET.

 

Adobe Systems (ADBE, news, msgs) said late Tuesday that it earned $126 million, or 24 cents per share, in its fiscal second quarter, a 41% drop from the $215 million, or 40 cents per share, it earned in the same period last year.

 

Adobe was hit by declining demand for its graphic-design software programs as advertisers cut back on spending because of the recession.

 
But shares were up 1.8% to $28.68 because the company's guidance was a bit stronger than expected.
 
Excluding one-time items, Adobe said it earned 35 cents per share, in line with analysts' expectations.

 

Revenue dropped 21% to $705 million, topping the consensus estimate of $695 million. Sales in the company's creative software division fell 22% to $411.7 million. Adobe

 

"Creative Suite 4 was unfortunate timing," said Pacific Crest Securities analyst Chad Bartley told Bloomberg News.

 

Creative Suite 4, a big graphic design, video editing and web development software package, came out last fall just as the recession worsened.

"The advertising market has seen substantial declines, with a lot of layoffs."

 

Adobe expects to earn 30 cents to 37 cents per share on revenue of between $665 million and $715 million. Wall Street is looking for 33 cents per share on $676.5 million in sales.

 

Adobe said sales are starting to bottom out in the U.S. The company also said it is continuing to look for merger and acquisitions opportunities.

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min
Sponsored by:

MARKET UPDATE

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Market index data delayed by 15 minutes

[BRIEFING.COM] The stock market finished the Tuesday session on an upbeat note with small caps pacing the rally. The Russell 2000 advanced 0.8%, while the S&P 500 added 0.5% with eight sectors ending in the green.

Although geopolitical concerns factored into the modest retreat on Monday, the worries were cast aside today after separatist forces in eastern Ukraine handed over black boxes from MH17 to Malaysian authorities and Secretary of State John Kerry began working on brokering a ... More


Currencies

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Sponsored by:

VIDEO ON MSN MONEY