Feeds

Warnock promised threat was no warning – here it is

Special to The Register

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

John Warnock, Adobe's chairman, delivered on the warning of lower profits for its third quarter ended 28 August. Net income was just $152,000 on revenue of $223 million, with earnings per share of $0.01. Restructuring costs associated with a 12 per cent reduction of staff were $37 million. Excluding non-recurring costs, the earnings would have been $0.37/share, enough to beat the First Call consensus by 2 cents. Prior to the profit warning, which resulted from a severe Japanese draft that clipped more than $25 million from the year-ago quarter, the First Call consensus had been 50 cents/share. Warnock said: "We have taken the necessary steps to position the company for growth and profitability." What he did not spell out was that Adobe had never undertaken a serious cost-control exercise, because of comfortable 30 per cent growth and profits. A bad quarter provided the excuse. The Adobe board decided to pay $0.05 per share in dividend, since there was some $443 million in cash and short-term investments in the kitty. Sales for the quarter were down about 3 per cent compared with the year-ago quarter. Part of the problem was that Adobe had not delivered any significant product or update in the quarter. A new version of Illustrator is expected this month. Tough competition has arrived from Microsoft's PictureIt, but as the graphics market is expanding, this is less of a problem. So far as the future is concerned, Adobe has increased R&D expenditure, and with its slimmer workforce, appears well-positioned to improve its performance, even if the Japanese market does not recover very quickly. ®

Remote control for virtualized desktops

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Free virtual appliance for wire data analytics
The ExtraHop Discovery Edition is a free virtual appliance will help you to discover the performance of your applications across the network, web, VDI, database, and storage tiers.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.