The dip in profit was attributed to weak demand for its software
Design and desktop publishing software provider Adobe Systems has reported a 29% decrease in net income to $156.4m for the first quarter 2009. The company revenue fell 12% to $786.4m, compared to $890.4m for the first quarter of fiscal 2008. The dip in profit was attributed to weak demand for its software.
Operating income fell 24% to $208m, while diluted EPS fell 21% to $0.30. Cash and cash equivalents at the end of the quarter was $1.15 billion. Product revenue fell 13% to $742.2m, while services and support revenue rose 13% to $44.2m.
Shantanu Narayen, president and chief executive at Adobe, said: In this tough economic environment, we are pleased we were able to manage expenses to deliver solid Q1 earnings and margin results. We believe the major market trends driving our business remain intact, and we will continue to focus on innovation and investing in new growth businesses to increase the strategic value we provide our customers.
Looking ahead to the second quarter 2009, it expects revenue between $675m and $725m, operating margin between 21% and 26%, and diluted EPS between $0.20 and $0.27.