Adobe Warns of Japan Weakness . |
| Wall Street Journal - Mar 23, 2011 |
Adobe Systems Inc.'s earnings rose 84% but the software maker warned of weakness in the current quarter as a result of business uncertainty in Japan. Shares fell 4% in trading Wednesday.
Chief Financial Officer Mark Garrett said the company reduced its revenue expectation for the second quarter by $50 million—or roughly one-third of the original expectation for Japan—due to an uncertain business environment after the nation was rocked by an earthquake and tsunami.
The revenue hit is amplified, said Chief Executive Shantanu Narayen, because Japanese companies typically close sales in March, which is the end of the fiscal year for many of them. However, he said, the tragedy hasn't changed Adobe's optimism about the market and its long-term growth prospects.
Sales of Adobe's creative and interactive tools for building websites grew 27.7% in the fiscal first quarter, faster than the 24% growth of the fourth quarter of last year.
Read Full Article from Wall Street Journal
- Posted: 2011-03-23 10:37:00
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