Adobe allays worries; Sets up for CS4 launch
Adobe's third quarter earnings handily topped Wall Street estimates and the company projected fourth quarter results that are in line to better than what analysts were expecting.
Adobe on Tuesday reported third quarter earnings of $191.6 million, or 35 cents a share, on revenue of $887.3 million, up from $851.7 million in the same quarter a year ago (statement, preview). Excluding charges Adobe reported earnings of 50 cents a share. Overall, Adobe's quarter should dispel worries about whether the company can navigate a shaky economy ahead of its Creative Suite 4 launch next week.
Wall Street was expecting earnings of 46 cents a share excluding charges and 36 cents a share including items. Revenue was expected to be $876 million, according to Thomson Reuters.
For the fourth quarter Adobe said revenue will be $925 million to $955 million with earnings between 51 cents a share and 53 cents a share excluding charges. For the fourth quarter, Wall Street is expecting earnings of 51 cents a share excluding charges and 40 cents including them. Revenue is projected to be $939.4 million.
In a statement, Adobe CEO Shantanu Narayen said that the quarter was driven by Acrobat and LiveCycle sales.
By the numbers:
- Creative solutions revenue was 56 percent of revenue in the quarter followed by business productivity software at 32 percent.
- R&D spending in the quarter was $170 million, up from $163.2 million a year ago.
- Adobe had $1.13 billion in cash at the end of the quarter.
- Revenue in the Americas was 45 percent of sales with Europe, Middle East and Africa representing 35 percent followed by Asia with 21 percent.
- The company had 7,623 employees.