Adobe Beats by a Penny, But Sales Fall; Shares Higher on Guidance

Mar.21.07 | About: Adobe Systems (ADBE)

Adobe Systems reported Q1 net income rose 37% to $143.9 million, or $0.24/share, on a 0.9% decrease in sales to $649.4m. Adobe provided Q2 EPS guidance of $0.34 - $0.36 on sales of $700m - $740m, compared to analysts' average estimate of $0.34/share and $718.8m for sales. Adobe-ADBE-chart-03-20-07 Adobe plans to hold a customer event on March 27 in New York to announce the release of its Creative Suite 3.0 software, which it says is the biggest product launch in the company's history. On Monday it introduced the first public alpha version of Apollo ("a cross-operating system runtime ... to build and deploy rich Internet applications [RIAs] to the desktop") on Adobe Labs. Its shares gained 1.2% to $40.74 in normal trading and climbed another 3.7% to $42.25 in after-hours activity on volume of over 1.3 million.

Sources: Adobe Systems F1Q07 Earnings Call Transcript, Press release [pdf], Bloomberg
Commentary: Color On Adobe's Quarter: Solid, All Eyes On CS3 LaunchAdobe: Focus Remains on Creative Suite 3 Ahead of EarningsInternet Ad Revenue on the Rise: How Adobe Can Benefit from this Trend
Stocks/ETFs to watch: Adobe Systems (NASDAQ:ADBE). Competitors: Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL). ETFs: Software HOLDRS (NYSE:SWH), iShares Goldman Sachs Software (NYSEARCA:IGV), PowerShares Dynamic Software (NYSEARCA:PSJ)
Related: Adobe Labs: Apollo, Apollo press release, GigaOM: The Coming Apollo vs. Firefox Battle

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