Adobe profit rises with sales of creative programs

Tue Jun 17, 2008 12:23am BST
 
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By Jim Finkle

BOSTON (Reuters) - U.S. software maker Adobe Systems (ADBE.O) reported a 41 percent rise in quarterly profit on Monday, as strong revenue growth overseas offset flat sales in the economically troubled United States.

But shares of the maker of Photoshop, Flash and Acrobat software fell 3 percent after it gave a revenue forecast for the current quarter that was not as strong as some investors expected, analysts said.

"The key is the guidance for the August quarter," said Piper Jaffray analyst Mike Olson. "The midpoint of the revenue range is slightly below the consensus."

Adobe forecast fiscal third quarter revenue in a range of $855 million to $885 million (435 million to 450 million pounds), which compared with the average analyst forecast of $876 million according to Reuters Estimates.

It forecast third quarter per-share profit before items at between 45 cents and 47 cents, compared with the average Wall Street estimate of 45 cents.

"Clearly there are some things to pick at," said Goldman Sachs analyst Sasa Zorovic. "We talked to some investors who were expecting higher."

But he added that it was "a strong quarter" overall for Adobe.

Adobe is seeing strong revenue growth in Europe and in developing markets, Chief Executive Shantanu Narayen told Reuters in an interview.  Continued...

 
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