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| UPDATED: 2006-05-04 |
 Adobe Crumbles On Weak Forecast 
By: David Utter 2006-05-04 Investors knocked down shares of Adobe by more than eight percent after the software company said its second quarter numbers would hover toward the low end of its projections.  Adobe (ADBE) took some punishment Wall Street-style when it provided its Intra-Quarter Business Update. The company disclosed that weaker than expected demand during the Spring holiday periods in Europe and North America was to blame for the lowered expectations.
The company will announce its fiscal second quarter 2006 earnings after market close on June 15th. Adobe expects to report earnings per share of 18 to 21 cents and revenue of between $640 million and $670 million. Since the update indicated results would be on the lower side of its financial guidance, investors hammered Adobe in response. Shares closed at 35.06, down 3.29 per share as the market expressed its displeasure with the report. One firm, CIBC World Markets, downgraded its rating on Adobe from Sector Outperform to Sector Perform after the report. One of their analysts told the Wall Street Journal that he is concerned a weak second quarter could also mean a weaker third quarter for Adobe as well. Adobe's Macromedia purchase has demonstrated one recent positive development. Developers use Flash to deliver online streaming video content more than they use Apple's QuickTime and RealPlayer from RealNetworks. Adobe cited a survey by AccuStream iMedia Research that also found Flash content development has been growing at a faster rate than Windows Media Player. Forthcoming product launches could help Adobe regain momentum with investors, as Acrobat 8 is expected to launch in September and the new Creative Solutions 3 should arrive sometime in the first half of 2007. --- Tag: Adobe Add to | DiggThis | Yahoo! My Web | Furl Bookmark IFN - 
View All Articles by David Utter About the Author: David Utter is a staff writer for InternetFinancialNews and WebProNews covering technology and business. |
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