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.
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