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Tuesday, December 16, 2008

Adobe's Net Rises 11%; Sales Fail to Meet Views

By Donna Fuscaldo

FOXBusiness

Adobe Systems (ADBE), the maker of Photoshop and Acrobat software, posted an 11% increase in fourth quarter net income, but sales fell short of Wall Street expectations.

For its fiscal fourth quarter, the San Jose, Calif., design software maker posted net come of $245.9 million or 46 cents a share, compared with $222.2 million or 38 cents in the year ago fourth quarter.

Revenue came in at $915.13 million from $911.2 million in last’s years fourth quarter. Excluding items Adobe posted earnings of 60 cents a share, beating the Thomson First Call estimate of 57 cents. Adobe’s revenue result fell short of the $918.3 million consensus.

Earlier in December, Adobe forecasted fourth-quarter earnings excluding items of between 59 cents and 60 cents a share and revenue between $912 billion and $915 million.

Despite a difficult economic environment in 2008, we were able to achieve record revenue and double digit growth for the sixth consecutive year,” said Shantanu Narayen, president and Chief Executive in a press release. “In addition, our consistent execution and disciplined expense management enabled us to significantly exceed our profit targets.

Narayen did warn that 2009 will be a challenging year but said he is confident the company will emerge from the current recession stronger.

Looking out to its fiscal first quarter, Adobe reiterated it expects revenue of between $800 million and $850 million and GAAP earnings of 30 cents to 35 cents and non-GAAP earnings of 43 cents to 47 cents a share.

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