Adobe expects disappointing Q1 sales
Business weakened by economic downturn
Adobe Systems warned late yesterday that its first quarter revenue would undershoot analyst expectations but added earnings would meet the company’s forecasts.
The software maker said in a prelim statement that it now expects to see revenue of $783m to $786m for Q1. It had originally targeted $800m to $850m in sales for the period ended 27 February 2009.
Analysts had forecast Adobe to pull in around $792m for the quarter.
The firm blamed its revenue shortfall on weakness in its “creative and knowledge worker businesses”.
However, the vendor, which makes software products such as Flash and PhotoShop, remained optimistic that earnings would be in line with expectations.
The firm reiterated its earnings forecast of 30 cents per share and adjusted profit of 44 cents or 45 cents per share.
"Despite worsening market conditions, we were able to manage expenses to deliver earnings and margin results within the target ranges we provided," said Adobe CEO Shantanu Narayen.
The San Jose, California-based company said it was hoping to see revenue of $675m to $725m in its second quarter, far short of the $776.3m analysts had predicted.
Adobe will announce its Q1 results on 17 March. ®