Media Money with Julia Boorstin

Adobe's Better Than Expected Day

After the bell Tuesday, Adobe announced better than expected revenues and earnings. First quarter revenue came in at $890 million, up 37 percent from the year ago quarter.

During the quarter the company spent $1.25 billion repurchasing 33.3 million shares of its outstanding stock, putting its GAAP diluted earnings at 38 cents per share, beating the target range of 34 to 36 cents per share.

Analysts were concerned that there would be a dip in sales as the company is between product cycles, but the company reported that demand for the Creative Suite 3 and Acrobat products continues to be strong. ADBE stock went up in after hours trading, after the stock had been foundering around a 52-week low.

Adobe sits at the intersection of technology and new media--providing the players and software to edit and distribute online video. This seems to be an area the media giants will continue to invest in, despite any decline of ad revenues, etc., that an economic slowdown might bring.

Adobe has a new revenue driver in the works and sometime early next month it's expected to release its new media player which many say will transform the way people watch video on their computers. This new player is a step beyond its current Flash player that's currently used for virtually all online video.

This new one will allow you to watch Internet video even when you're offline, by downloading the content to your desktop. And the player is open-source (like Linux, which means users can adapt the technology) and it works across all platforms (both Mac and PC). If it's as revolutionary as I'm hearing, it could really work as a content aggregator for online video.

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