Adobe Systems posts drop in 2Q profit, sales
June 17, 2009 By BARBARA ORTUTAY , AP Technology Writer(AP) -- Adobe Systems Inc., the company whose software powers Flash animation and PDF documents, posted a sharp drop in its fiscal second-quarter profit and sales Tuesday amid weaker demand in the economic downturn.
But the quarter's revenue inched past Wall Street's expectations, and adjusted earnings met those estimates as well as the company's own guidance.
For the three months ended May 29, Adobe earned $126.1 million, or 24 cents per share, a 41 percent decrease from $214.9 million, or 40 cents per share, a year earlier.
Excluding special items, the San Jose, Calif.-based company earned 35 cents per share, matching analysts' forecasts.
Revenue dropped 21 percent to $704.7 million. That's slightly above the $694.8 million that analysts polled by Thomson Reuters had predicted.
Adobe's CEO Shantanu Narayen said in a statement the company was "pleased with the solid profit margin and earnings results" the company delivered amid the global recession.
For the current quarter, Adobe forecast a profit of 20 cents to 27 cents per share. Excluding items, it is expecting 30 cents to 37 cents per share, which compares with analysts' estimates of 33 cents per share.
Adobe expects revenue of $665 million to $715 million, bracketing analysts' estimates of $676 million.
The company, which said in December it is cutting 600 jobs, or 8 percent of its work force, reported a 13 percent decline in operating expenses for the quarter, to $471.3 million.
Chief Financial Officer Mark Garrett said Adobe is continuing to invest in the areas of its business that will drive growth once the economy recovers. These include its core Acrobat and Creative Suite products, which bring in the bulk of Adobe's revenue, as well as products like LiveCycle, which is aimed at large businesses.
Acrobat is the set of software that creates and reads the ubiquitous PDF electronic documents. Creative Suite is a software package aimed at professional designers and Web developers. It includes Photoshop, Flash and Web design software Dreamweaver, among other applications.
Earlier this week, Adobe introduced an enhanced subscription service for its previously free Acrobat.com Web site, a step toward offering its software as services rather than just packaged products. The Acrobat subscription services target professionals and small businesses who want to work together online.
Adobe's shares slid 77 cents, or 2.7 percent, to $27.40 in after-hours trading. Before the results were announced, the stock closed down 65 cents, or 2.3 percent, at $28.17.
©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
-
Adobe 1Q profit, sales drop, squeezed by downturn
Mar 17, 2009 |
not rated yet |
0
-
Amazon 1Q profit, revenue jump on strong sales
Apr 23, 2009 |
not rated yet |
0
-
EA posts smaller 4Q loss as costs decline
May 05, 2009 |
not rated yet |
0
-
EBay 1st-qtr profit, sales fall on weak economy
Apr 22, 2009 |
not rated yet |
0
-
Verizon 1st-qtr profit, revenue beat expectations
Apr 27, 2009 |
not rated yet |
0
-
Fast photon control brings quantum photonic technologies closer
1 hour ago |
5 / 5 (2) |
0
-
Engineers build first sub-10-nm carbon nanotube transistor
Feb 01, 2012 |
4.9 / 5 (33) |
30
-
Something old, something new: Evolution and the structural divergence of duplicate genes
Jan 31, 2012 |
4.6 / 5 (7) |
1
-
The hidden nanoworld of ice crystals: Revealing the dynamic behavior of quasi-liquid layers
Jan 30, 2012 |
5 / 5 (5) |
1
-
Stock market network reveals investor clustering
Jan 27, 2012 |
3.9 / 5 (23) |
8
-
How to tilt a object
14 hours ago
-
How to calculate total compressibility in liquid porous solid system
19 hours ago
-
Need help reading 3-D
Feb 11, 2012
-
A way to send and receive wireless data
Feb 11, 2012
-
Calling function with no input argument
Feb 10, 2012
-
Force free body diagram problem on gym equipment
Feb 10, 2012
- More from Physics Forums - General Engineering
More news stories
Independent group inspects Apple supplier
(AP) -- An independent group, the Fair Labor Association, has started auditing Apple Inc.'s Chinese supplier Foxconn after a request by Apple.
29 minutes ago |
not rated yet |
0
Teaching teens safety in the virtual world
A new cyber safety program on the dangers of social networking is being developed by Flinders University, in light of an alarming report which shows children as young as 12 are meeting internet strangers in ...
1 hour ago |
not rated yet |
0
Ethanol mandate not the best option
Many people are willing to pay a premium for ethanol, but not enough to justify the government mandate for the corn-based fuel, a Michigan State University economist argues.
Technology / Energy & Green Tech
1 hour ago |
5 / 5 (1) |
0
Microsoft India retail site down after 'cyber attack'
Microsoft said Monday it was investigating an attack by hackers on its Indian retail website, reportedly carried out by a Chinese group called the "Evil Shadow Team."
4 hours ago |
not rated yet |
0
Chinese city seizes Apple iPads in name dispute
(AP) -- Authorities have seized Apple iPads from retailers in a city in northern China due to a dispute with a domestic company that says it owns the iPad name, an official said Monday. The Chinese company said it is asking ...
4 hours ago |
not rated yet |
0
Fast photon control brings quantum photonic technologies closer
(PhysOrg.com) -- Using photons instead of electrons to transmit information could lead to faster and more secure ways to communicate, among other advantages. Now a team of physicists has taken another step toward realizing ...
Planck mission steps closer to the cosmic blueprint
(PhysOrg.com) -- ESA's Planck mission has revealed that our Galaxy contains previously undiscovered islands of cold gas and a mysterious haze of microwaves. These results give scientists new treasure to mine ...
New ability to regrow blood vessels holds promise for treatment of heart disease
(Medical Xpress) -- University of Texas at Austin researchers have demonstrated a new and more effective method for regrowing blood vessels in the heart and limbs a research advancement that could have ...
Myths and shame keep many from seeking bankruptcy protection
(PhysOrg.com) -- Two interesting facts that may counter modern ideas about bankruptcy: The overwhelming majority of U.S. filings belong to individuals rather than corporations or entities, and most of these ...
Big Society could threaten biodiversity conservation
A study of the Moray Firth Seal Management Plan (MFSMP), in north-east Scotland, identified four key conditions for long-term success, three of which pointed to the importance of direct government involvement.
Motivation to exercise affects behavior
(Medical Xpress) -- For many people, the motivation to exercise fluctuates from week to week, and these fluctuations predict whether they will be physically active, according to researchers at Penn State. In an effort to ...