Adobe 4Q Beats the Street; 1Q View Upbeat

By Technology FOXBusiness

Adobe Systems (NASDAQ:ADBE) weighed in with better-than-expected fourth-quarter results Monday after the bell, as the software giant posted its first billion-dollar quarter for revenue.

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The shares rallied in after-hours trading.

The maker of popular software programs such as Flash and Photoshop, forecast adjusted first-quarter earnings in the range of 54 cents to 59 cents a share on revenue between $1.0 billion and $1.05 billion. The Street had predicted earnings of 51 cents a share on revenue of $992.19 million in the first quarter of fiscal 2011.

In the fourth quarter of fiscal 2010, Adobe posted net income of $286.9 million, or 53 cents a share, compared with year-ago profit of $153.6 million, or a loss of 6 cents a share. Adjusted earnings rose to 56 cents per share, up from 39 cents in the fourth quarter of fiscal 2009.

Revenue rose to $1.008 billion, compared with sales of $757.3 million in the fourth quarter of last year. The results easily topped the Street’s view, as analysts polled by Thomson Reuters were looking for earnings of 52 cents a share on revenue of $988.07 million.

"We posted our first billion dollar quarter and record annual revenue in 2010, driven by outstanding performance across all of our major businesses," said Shantanu Narayen, president and CEO of Adobe, in a statement. "Adobe is transforming how the world is creating, measuring and delivering digital experiences. We are one of the most diversified software companies in the world and are entering 2011 with strong momentum."

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Shares of Adobe rose 1.35% on Monday, closing the session at $29.18. The stock was up another $1.98, or 6.8%, in after-hours trading.

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