Adobe’s Profit Down, But Sales Up for Q3 2008
Adobe Systems, a publishing and design software company, has reported that its quarterly profit fell 7%, but this is still better than what Wall Street has expected. Higher operating costs and lower interest income contributed to Q3's lower net profit. But the company is optimistic, as it plans to unveil new Adobe Creative Suite 4.0 in several days. The San Jose-based software company earned US$ 191.6 million on sales of US$ 887.3 million in Q3 of 2008, which ended on August 29. A year ago in the same quarter, Adobe earned 7% more -- US$ 205.2 million on sales of US$ 851.7 million. Despite the struggling economy, revenue in the third quarter of Adobe’s fiscal year climbed 4% to US$ 887.3 million, beating the forecasted range of US$ 855 to $885 million. According to Adobe, the revenue increase was driven by sales of its flagship product Acrobat and document management tool LiveCycle. Adobe LiveCycle ES (Enterprise Suite) was recently integrated with enterprise CMS Alfresco, presenting a solution that encompasses data capture, document output, content management and more. In Q3, Adobe’s costs in administration, sales and R&D rose significantly. The company spent US$ 20 million more on sales and marketing in the third quarter of this year than in the period last year. The company had fewer outstanding shares in the latest quarter, raising the per-share earnings. Adobe reports that it earned non-GAAP diluted earnings per share of $US 0.50, which is above Wall Street’s expectations of $US 0.46. For the Q4 of fiscal 2008, Adobe is targeting revenue of US$ 925 million to $955 million. The main driver in achieving this target will be a new product to be released on September 23, 2008. Adobe says it is “going to be brilliant,” as the company unveils the shiny and new version 4.0 of its Adobe Creative Suite. Adobe offers a preview of 4.0, but if you cannot make it then, we are sure the new product will be demonstrated in all its beauty at the upcoming Adobe MAX 2008 event.