Tags: Adobe | profit | web-software | sales

Adobe Profit Tops Estimates as Web-Software Sales Rise

Tuesday, 19 Mar 2013 05:14 PM

Adobe Systems Inc., the largest maker of graphic-design software, reported fiscal first-quarter sales and profit that exceeded analysts’ estimates as more customers adopted online versions of its products.

Sales for the period that ended March 1 was $1.01 billion, San Jose, California-based Adobe said in a statement Tuesday. That topped the average $985.8 million projection, according to analysts’ estimates compiled by Bloomberg. Profit excluding some items was 35 cents a share, compared with analysts’ average 31-cent prediction.

Chief Executive Officer Shantanu Narayen is in the middle of a push to sell more products over the Web and on mobile devices such as tablets, aiming to lessen Adobe’s reliance on software that’s installed and stored on computers. Adobe added 153,000 paying subscribers to its Creative Cloud tools -- including Photoshop, Dreamweaver and Illustrator -- during the first quarter.

“The speed of the transition is the paramount thing on investors’ minds,” said Steven Ashley, an analyst at Robert W. Baird & Co. Ashley, who is based in Milwaukee and has a neutral rating for Adobe shares, had estimated 127,000 new subscribers. “We all know this is the transition year.”

Shares of Adobe jumped as much as 6.4 percent in extended trading after declining less than 1 percent to $40.75 at the close in New York. The stock has gained 8.1 percent so far this year.

Kevin Lynch, Adobe’s chief technology officer, resigned this week to pursue other opportunities, the company said in a regulatory filing.

Net income fell 65 percent to $65.1 million, or 13 cents a share, from $185.2 million, or 37 cents, a year earlier.

Narayen has also been moving Adobe further into software for online marketing. A revised version of Adobe’s Marketing Cloud software, to go on sale in the coming months, will include touch-screen capabilities for use on tablets and digital “cards” that can embed charts or snippets of advertising campaigns for sharing between co-workers.

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Adobe Systems Inc., the largest maker of graphic-design software, reported fiscal first-quarter sales and profit that exceeded analysts' estimates as more customers adopted online versions of its products.
Adobe,profit,web-software,sales
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2013-14-19
Tuesday, 19 Mar 2013 05:14 PM
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