Adobe Profit Beats Expectations; Shares Climb
Shares of Desktop publishing software maker Adobe Systems rose nearly four percent Tuesday after fiscal fourth-quarter results and its forecast for fiscal 2008 both topped Wall Street's expectations.
In an interview on CNBC's "Squawk Box," Adobe Chief Executive Shantanu Narayen said the company is benefiting from the growth of digital content on the Internet and other types of digital equipment.
"The amount of digital content that's being created on the Web is clearly exploding, and we had a phenomenal quarter with our creative-suite business, which are the tools that people use to create content for the web, and, increasingly, video on the web is also being used, using the Adobe technology," Narayen said.
"Our vision really is to help people create brand-new content and new media types," he continued. "The other thing I would point out is the number of devices on which people are consuming content is clearly exploding, and we now have Flash running on phones around the world."
For the quarter ended Nov. 30, the company earned $222.2 million, or 38 cents per share, up 21 percent from $183.2 million, or 30 cents per share, in the same period a year earlier.
Adjusted earnings, excluding stock options costs and the amortization of intangibles, were $289.6 million, or 49 cents per share.
Revenue rose 34 percent to $911.2 million from $682.2 million, fueled by strong sales of Creative Suite 3 and Acrobat.
Analysts, on average, were expecting a profit, excluding special items, of 48 cents per share on revenue of $887.3 million, according to a survey by Thomson Financial.
Adobe said it expects first-quarter earnings of 34 cents to 36 cents per share and adjusted earnings between 44 cents and 46 cents per share -- above analysts' expectations of 42 cents per share in adjusted earnings.
According to Narayen, the company is not announcing any new products at this time, however, in the latter half of fiscal 2008, the company will be releasing several new products.
Adobe shares gained nearly 4 percent.