Fresh from its acquisition of Macromedia Inc in December, Adobe Systems Inc yesterday posted a 39% surge in revenue for its first quarter, which beat analysts’ expectations.
However, Adobe’s revenue outlook for its current quarter was not what Wall Street had hoped for, and the company cautioned that earnings might also fall short.
For its most recent quarter ended March 3, revenue rose to $655.5m from a year ago.
Adobe posted a $105.1m profit, or 17 cents a share, which was down from $151.9m, or 30 cents, a year ago – mostly due to charges associated with its $3.7bn Macromedia purchase.
Adobe chief executive Bruce Chizen said on a conference call that the company was quickly integrating Macromedia. Even without Macromedia’s revenue contribution during the current quarter, Chizen said Adobe’s own revenue would have increased by more than 10%.
Driving our business performance this quarter was strong demand for our creative solutions and our Acrobat product line, he said.
Without merger and employee stock option expenses, Adobe would have had a $197.5m, or 32 cent, profit for the quarter. Analysts had hoped for a 29-cent profit on $650.3m in revenue.
Looking ahead, Adobe forecast revenues in the $640m to $670m range, with earnings per share before items of between 30 cents and 32 cents. Wall Street had pegged a profit range of between 31 cents and 24 cents on $676m in revenue.
After the Nasdaq closed yesterday, when Adobe announced its results, shares in the company fell almost 4% to $35.24 in after-hours trading.