Adobe Q4 Profits Rise On Cost Cutting Measures

December 16, 2008 6:00 p.m. EST

San Jose, CA (AHN) - Adobe Systems Inc. announced Tuesday fiscal fourth quarter profits rose 11 percent as flat revenue was offset by savings in business costs during the quarter.

The software company posted fiscal fourth quarter earnings of $245.9 million or 46 cents a share, compared to $222.2 million or 38 cents a share in the same period a year ago. Excluding one-time charges, Adobe earned 60 cents a share.

Earnings results were well below the 58 cents a share analysts were looking for, according to Thomson Reuters.

Revenue was generally flat at $915 million from $912 million last year. Adobe said sales of Creative Suite 4, its largest revenue generator, were weaker than expected.

For fiscal year 2008, Adobe earned $871.8 million or $1.59 a share, up from $723.8 million in fiscal 2007 while revenue grew 13 percent to $3.58 billion.

"Despite a difficult economic environment in 2008, we were able to achieve record revenue and double digit growth for the sixth consecutive year," said President and CEO Shantanu Narayen in a company statement.

"In addition, our consistent execution and disciplined expense management enabled us to significantly exceed our profit target, Narayen said.

Adobe reaffirmed its outlook for fiscal first quarter 2009 expecting 30 to 35 cents a share in earnings on $800 million to $850 million in revenue.

Shares of Adobe rose 10.6 percent in afterhours trading to $24.70 after adding 4.5 percent during regular market hours Tuesday.

Adobe is best known for its Photoshop software and Acrobat PDF program.