Feeds

Warnock promised threat was no warning – here it is

Special to The Register

  • alert
  • submit to reddit

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.