Adobe Reports Drop in Revenue for Q1 2009

Recently, Adobe Systems Incorporated has announced the preliminary financial results corresponding to the first quarter of 2009, which ended on February 27th. According to the financial information, the company estimates that it will achieve revenue ranging between $783 million and $786 million. Additionally, Adobe representatives hope they will be able to achieve diluted earnings per share of about $0.30 on a GAAP basis, whereas on a non-GAAP basis these will vary between $0.44 and $0.45.

Furthermore, when it comes to the Q1 operating margin, Adobe believes it will range between 26.0 percent and 26.5 percent on a GAAP basis, and between 37.0 percent and 37.5 percent on a non-GAAP basis.

The first-quarter revenue target range for Adobe was 800 million to 850 million dollars, and the diluted earnings per share target range was of $0.30 to $0.35 on a GAAP basis, and of $0.43 to $0.47 on a non-GAAP basis. In addition, the operating margin target varied between 26 percent and 28 percent on a GAAP basis, and between 37 percent and 38 percent on a non-GAAP basis.

As an overall summary, the company reported that the main reason for the revenue shortfall was the weakness in the creative and knowledge worker businesses. However, the ongoing success with the LiveCycle enterprise business and the seasonal strength from Japan were the factors that helped in balancing the weakness.

“Despite worsening market conditions, we were able to manage expenses to deliver earnings and margin results within the target ranges we provided at the outset of the quarter,” declared Shantanu Narayen, the president and chief executive officer of Adobe.
 

On the other hand, during the second quarter of the fiscal 2009, the company aims to obtain revenue ranging between $675 million and $725 million, while the operating margin would vary between 21 percent and 26 percent on a GAAP basis, and between 32 percent and 36 percent on a non-GAAP basis.