Adobe Systems has provided preliminary financial results for its fourth quarter ended Nov. 28, 2008.
Based on preliminary Q4 financial information, Adobe believes it will achieve fourth quarter fiscal 2008 revenue in the range of $912 million to $915 million. The Company also believes it will achieve GAAP diluted earnings per share in the range of $0.45 to $0.46, and non-GAAP diluted earnings per share in the range of $0.59 to $0.60. The GAAP and non-GAAP diluted earnings per share estimates include two favorable tax items: a current quarter catch-up related to the reinstatement of the U.S. research and development credit and a favorable tax court settlement, which increased Q4 estimated GAAP and non-GAAP diluted earnings per share ranges by approximately $0.05.
Adobe’s fourth quarter revenue target range was $925 million to $955 million, and its fourth quarter diluted earnings per share target ranges were $0.39 to $0.41 on a GAAP basis, and $0.51 to $0.53 on a non-GAAP basis. A reconciliation of preliminary GAAP and non-GAAP financial results is available later in this press release.
“The global economic crisis significantly impacted our revenue during the fourth quarter,” said Shantanu Narayen, president and chief executive officer, in the press release. “We have taken action to reduce our operating costs and fine-tune the focus of our resources on key strategic priorities.”
The Company cited weaker-than-expected demand for its new Creative Suite 4 family of products that began shipping in Q4 in North America and Europe as the main cause for the shortfall in fourth quarter revenue.
Adobe also announced the implementation of a restructuring program, and has taken steps to reduce its headcount by approximately 600 full-time positions globally. The restructuring will result in anticipated pre-tax charges totaling approximately $44 million to $50 million. The Company expects approximately $28 million to $30 million of the restructuring charges to be recorded in the fourth quarter of fiscal year 2008.
Adobe also provided initial financial targets for its first quarter of fiscal year 2009. The Company stated it is targeting Q1 revenue of $800 million to $850 million. In addition, the Company said it is targeting a Q1 GAAP operating margin range of 26 percent to 28 percent, and a Q1 non-GAAP operating margin range of 37 percent to 38 percent. A reconciliation of GAAP and non-GAAP financial targets is available later in this press release.
The Company will discuss its quarterly and full-year results as well as its Q1 financial targets and the restructuring program on its Q4 and fiscal year 2008 earnings conference call that is scheduled for Dec. 16, 2008.
MacDailyNews Note: The layoffs come shortly after Adobe announced that the company will not be participating in the annual Macworld Conference and Expo show in San Francisco which takes place January 5-9, 2009.
MacDailyNews Take: For years Adobe thought the Mac was dead. They even started banking on it. But, they were wrong. Dead wrong.
Photoshop at $500, when you can just use Pixelmator for OSX for pocket change.
Adobe has treated the Mac as a second class citizen for years even though they would not even exist if Apple had not created the desktop publishing industry in the 80s.
Considering the growth in Mac sales and the number of people working on Macs, you think they would want to get back into a marketplace that has for years bought more software than the other platform.
Time to ‘think different’ at Adobe!
Check out this link!
http://www.dearadobe.com/top_rated.php
Adobe sucks. Period. They grossly overcharge and give you bloated, slow programs for it. Sounds like Microsoft doesn’t it?
Too expensive, too bulky, too bad.
There was a time when I was a huge fan of Adobe, now they’re just like M$.
Maybe it’s time for a buy out.
They will be at MacWorld, but only giving seminars. Get the fukkking journalism right.
I hate Adobe so much. I hope they go under.. what an awful company.
Job cuts are really out of control, and it’s sad to know it’s now affecting one of our favorite companies. The critical step now is to identify companies out there who are providing opportunities in these tough times. Here’s a pretty good site that specially unites these employers to save main street – http://www.jobstaxi.com/savemainstreet
God bless Adobe.
More Expo space for companies that want to put out quality products and quality service. Adobe lost both years ago.
To me, when people speak highly of Adobe, I feel maybe they are referring to the Aldus bits.
@ kevt
Maybe you’re looking for more of a “Bye… Out!”?
If Adobe was the most evil software company on the face of the planet, we’d be in pretty good shape.
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Adobe is seeing weak demand for CS4 because there’s nothing in it that is enticing enough to spend thousands of dollars on. Software this expensive shouldn’t be updated every 12-18 months with only subtle changes. They better make some revolutionary upgrades with each version or go with 24-30 month cycles instead.
I am sad for the employees that are going to be laid off, but on the other hand I feel that Adobe has been arrogant and indifferent with regard to Macintosh version of Photoshop. It still seems inconceivable that they are so far behind in modernizing their software. If someone would come up with a “Photoshop Killer” for the Mac (all the current image manipulation programs are limited in one way or another IMHO), they would absolutely lose the whole Mac market!
There are now many other programs that can create, edit, and read PDF files, and there are, of course, other graphics programs. Maybe we’re at a point where we don’t need Adobe.
I just hope that our old friend “ChrissyOne” survives the current purge. I know she said she wouldn’t be posting here anymore, but I hope she still at least checks in from time to time. Just wanted you to know you do have fans and that we wish you the best.
Maybe they should reduce the price of their over-priced software.
Adobe is mud. I had an adobe building. It rained. I have a puddle of muddle. Adobe is a muddle of bloat.
Bring back MacPaint. I have my overcoicked Mac 512K ready to make that software fly!
Doomsday for Adobe
Adobe is feeling the heat, this time is totally alone, fighting Microsoft’s ambitions to dominate the world and fighting Apple…
Those numbers look pretty good, but they’re still laying off 600?
What do those 600 do?
Demand for CS4 lower than expected by whom? The pre-release reviews were pretty united in saying it was a less than compelling upgrade that didn’t offer anything worth the upgrade price. And they don’t seem to have done much under the hood to update the code. I hope those 600 aren’t programmers.
Photoshop at $500, when you can just use Pixelmator for OSX for pocket change. —Gregario
I agree that Adobe apps have gotten too expensive, but Pixelmator is definitely no substitute for Photoshop. Photoshop Elements, on the other hand, is a very capable program in its own right for a fraction of the cost.
It’s not that Adobe isn’t making good products, because they are. Photoshop is and always has been the undisputed king of image editors. But times are tough; and meanwhile, even Adobe’s own Lightroom (which is advertised right next to the message window I am typing in at this very moment) is taking sales away from their flagship product.
This is what happens when you bet on the wrong horse. Now when is MS going to announce some layoffs.
Adobe products are waaaay overpriced. Year after year, they add more bells and whistles to their CS and it’s gotten to the point where even companies hesitate to upgrade. It’s out of control.
God I hate Adobe software. Most of the problems, I have had on any of my macs are because of Adobe software bloat or other Adobe problems.