Adobe Reports Strong Earnings, Raises Guidance
Adobe Systems, the world's largest marker of design software, reported quarterly results and current-quarter targets ahead of Wall Street expectations on strong sales of its updated suite of design products, sending shares up 4%.
"As we near the end of fiscal 2007, we remain well positioned for continued double-digit revenue growth," Chief Executive Bruce Chizen said. He joined CNBC's Carl Quintanilla for an interview to discuss the results.
Net income for the fiscal third quarter ended Aug. 31 rose to $205.2 million, or 34 cents a diluted share, compared with $94.4 million, or 16 cents a share in the quarter ended Sept. 1, 2006.
Revenue rose to $852 million from $602 million a year earlier.
Excluding some items, Adobe posted a profit of 45 cents a share, topping the Wall Street analysts average target of 41 cents. Revenue also topped an average estimate of $790 million, according to Reuters Estimates.
"It was a very solid quarter with very strong Creative Suite adoption," said Brad Reback, an analyst with CIBC World Markets. referring to the design software. "And a very solid outlook," he added.
The design software company, best known for products such as Photoshop used by professional designers, Acrobat, a document management system for office workers, and Flash, used by sites like Google's YouTube to display online videos, has been making fresh inroads into mobile phone, video and office worker markets.
Adobe said it expected adjusted earnings per share in the fiscal fourth quarter of 46 cents to 48 cents, ahead of the Wall Street target of 44 cents, and revenue of $860 million to $890 million, ahead of analysts' average expectation of $843.6 million.