Adobe on Monday reported fiscal fourth quarter earnings and revenue that topped expectations due to strong Creative Suite 3 demand. The company also upped its outlook for the first quarter.
For the quarter ended Nov. 30, Adobe reported fourth quarter revenue of $911.2 million, up 36 percent from $682.2 million a year ago and well ahead of expectations. Net income for the quarter was $222.2 million, or 38 cents a share. In the same quarter a year ago, Adobe reported earnings of $205.2 million, or 30 cents a share. Excluding charges and other items, Adobe reported a profit of 49 cents a share, a penny ahead of Wall Street estimates.
The outlook for the first quarter was also solid. Adobe said it will report earnings excluding charges of 44 cents a share to 46 cents a share. Wall Street was expecting 42 cents a share, according to Thomson Financial. Revenue for the first quarter is projected to be $855 million to $885 million ahead of the $835 million projected by Wall Street.
By the numbers:
- For its fiscal year, Adobe reported revenue of $3.16 billion, up from $2.57 billion in 2006. Net income was $723.8 million, or $1.21 a share, up from $505.8 million, or 83 cents a share, a year ago.
- For 2008, Adobe is targeting revenue growth of 13 percent and operating margins of about 30 percent.
- Adobe spent $613 million on research and development in fiscal 2007, up from $539.7 million a year ago.