Adobe Systems (Nasdaq: ADBE) rose US$3.13to $28.13 in morning trading Friday after the software maker reportedfirst-quarter results that exceeded analysts’ expectations.
In January, Adobe lowered itsoutlook for the quarter, saying a “deteriorating economy” was hurtingbusiness, particularly in the United States.
The San Jose, California-based software company said revenue for the quarterended March 2nd rose to $329 million from $282.2 million a year earlier,while earnings before extraordinary items totaled 33 cents per share. Netincome rose to $69.8 million, or 28 cents per share, from $64.6 million, or26 cents.
“Although we are disappointed in not meeting our original revenue target, wedid demonstrate our ability to proactively manage our business,” saidpresident and chief executive officer Bruce R. Chizen.
Adobe did lower its targets for the second quarter, and declined to projectresults for the rest of the year, citing “the challenging and uncertaineconomic environment.” The company said it expects revenue for the currentquarter to grow by about 15 percent over last year.
“Although we do not currently see a major slowdown in our business in Europeand Japan, the potential for a global slowdown causes us to defer providingupdated second-half targets until we have better visibility,” Chizen said.
Adobe also said directors authorized the repurchase of 5 million shares.
Prudential Securities repeated a strong buy rating on Adobe shares followingthe news, saying the results were better than expected and the buyback “islikely to be viewed as an upside surprise.”
Credit Suisse First Boston reportedly upgraded Adobe shares to buy fromhold.