Adobe Up In 4Q, But Down For Year

Despite lower licensing revenue, Adobe Systems Inc.yesterday managed to report record fourth-quarter revenue for the period ended Nov. 27, beating Wall Street expectations by 17 cents per share. The company, however, failed to meet year-end expectations.

Revenue for the quarter was $246.7 million, compared with $227.1 million for the same period last year. Net income was $50.3 million, or 78 cents a share, compared with $46.8 million, or 64 cents a share, year-over-year. Licensing revenue was down, though, to $39 million, compared with $46.4 million in the comparable year-ago quarter. The company said ongoing weakness in Japan's PC and printer markets and its expected reduction in royalty revenue from Hewlett-Packard's desktop monochrome laser division were the primary reasons for the decline.

For the year, revenue was $894.8 million, compared with $911.9 million last year. Net income was $105.1 million, or $1.55 per share. This includes a one-time restructuring charge and a 14-cents-per-share gain due to Adobe's venture investment activity. This compares with net income of $186.8 million, or $2.52 per share, last year. Analysts had expected Adobe to report $1.74 per share for 1998.