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MacDailyNews Note: Adobe earned 54 cents per share in its fiscal third quarter vs. analysts consensus expectation of 49 cents per share. Revenue increased 42% to $990.3 million vs. expectations of $985 million.
CNBC reports, “Guidance for the fourth quarter placed expected revenue in the range of $950 million-$1 billion, considerably less than $1.03 billion expected by analysts.”
MacDailyNews Note: Following Adobe’s earning release, in after-hours trading, ADBE shares were down nearly 15%.
Full article here.
MacDailyNews Take: Suggestion: Less whining, ingrates, and more work.
I bought every Photoshop upgrade since PS4 decades ago, but passed on CS4 because it didn’t sound compelling. The company’s focus seemed to have drifted away from real product improvement. I had not read any reviews of CS5, just went ahead and bought it. Then I found all the things that were new in CS4 are still beta-ish! Even older items, like the healing tool, have new problems. The company that makes my large prints is using CS3 because of the problems in color management in the newer versions.
I’m familiar with a story from my Silicon Valley relationships, that a few years ago Adobe management called in the PS team to discuss making major improvements to PS. The team leader said this: start over again from scratch, it’s an irrational hairball and needs a new intuitive interface. Management said: no, we aren’t going to do that.
As Steve Jobs has said, when a company stops being run by product people and is taken over by marketing, this is what happens.
Adobe, quit whining and fix your products.
Macdobe,
Exactly; although the correct phrase was EXTEND, EMBRACE, EXTINGUISH (EEE).
I know it’s a lot of fun to vent out our anger at Adobe (and for right reasons), but I must say, MDN’s take, looked from some distance, is just strange.
Let’s quickly review:
Adobe posted record revenue, up 42% from year ago;
The revenue beat WS estimates;
The GAAP net income went from $136m to $230.1m (again, beating expectations);
Adobe’s guidance was slightly below WS;
Adobe stock tanks.
Does this scenario look familiar? Quarter after quarter, AAPL would go through the same motions: they report record revenue, record profit, handily beat estimates, then guide conservatively, and stock slips (or tanks, depending on general market conditions).
I’m not trying to compare Apple and Adobe, just AAPL and ADBE. It is funny how Wall Street is quite consistent in treatment. Meanwhile, MDN calls them idiots when they do it with AAPL, but finds the same reaction perfectly reasonable when it’s ADBE.
I’ve been using Adobe products only because there is no one else making this type of software. I wish there were realistic options. I am not made of money and can’t afford their upgrades but have to use them to stay competitive with everyone else.
They are not bad products Adobe makes just way too expensive and not worth the upgrade prices. I am not looking for free but Adobe tends to make minor changes and then charge a ridiculous upgrade price. Consider Apple OS upgrades. Remember the Snow Leopard upgrade price????
Adobe, you lazy, greedy ingrates.
I hope Adobe dies as a company.