June 16th, 2008
Adobe ups outlook; Creative Suite chugs along
Adobe’s second quarter results and third quarter outlook were better than expected.
After the market closed Monday, Adobe reported net income of $214.9 million, or 40 cents a share, on revenue of $886.9 million. Excluding charges and other items, Adobe’s earnings were 50 cents a share, 4 cents ahead of Wall Street estimates.
For the third quarter (statement), Adobe projected non-GAAP earnings of 45 cents a share to 47 cents a share and 34 cents a share to 36 cents a share including charges. Revenue was projected to be $855 million to $885 million. According to Thomson First Call, Adobe was expected to earn 45 cents a share.
By the numbers (breakdown above, click to enlarge):
- Revenue for the second quarter was up 19 percent from a year ago. CEO Shantanu Narayen cited “product mix and geographic diversity” for the results.
- Creative solutions had sales of $527 million, or 59 percent of revenue, in the second quarter followed by business productivity software at $252.8 million, or 29 percent of revenue.
- Americas second quarter revenue was $383.8 million, or 43 percent of sales, followed by EMEA at $294.6 million, or 33 percent of sales. Asia revenue was $208.5 million, or 24 percent of sales.
- Operating income as a percentage of revenue was 29.3 percent, up from 24.2 percent a year ago, but down from 30.9 percent in the first quarter.
- Research and development spending was $170 million in the quarter, up from $150 million a year ago.
- The company had $1.86 billion in cash and short-term investments as of May 30.
- Adobe ended the quarter with 7,317 employees.
The big question is about CS4 and the revenue prospects. Adobe just started talking about CS Next.
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
For daily updates, follow Larry on Twitter.
Subscribe to Between the Lines via Email alerts or RSS.
