Wednesday, September 22, 2010

Adobe shares fall 20pct on lower-than-expect revenue forecast

NEW YORK: Shares of Adobe Systems Inc fell 20.1% to US$26.32 in pre-market trade on Wednesday, Sept 22 after the software maker gave a lower-than-expect revenue forecast late Tuesday.

Wire reports said Adobe had announced profit rose 45% in the fiscal third-quarter, as subscription and sales revenues rose, but the company's forecast was below expectations of analysts.

On Tuesday, Adobe Systems reported better-than-expected third-quarter results but set a revenue forecast for its fourth quarter that was below Wall Street's target, and the software maker's shares fell more than 13 percent after-hours.

Adobe had said net income rose to $230.1 million, or 44 cents a share, for the fiscal third quarter ended Sept. 3, from $136 million, or 26 cents a share, in the year-ago period.

Excluding items, Adobe earned 54 cents a share, better than the average Wall Street estimate of 49 cents a share, according to Thomson Reuters I/B/E/S.Revenue rose 42 percent to $990.3 million, just ahead of Wall Street's target of $985 million.

For the current quarter, Adobe forecast earnings excluding items of 48 cents to 54 cents a share on revenue of $950 million to $1 billion. Analysts are expecting a profit of 53 cents a share on revenue of $1.03 billion. - Agencies


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