Top Tech Performers
Adobe Beats Earnings Estimates
Ivy Lessner
09/16/08 - 04:39 PM EDT
SAN FRANCISCO - Adobe Systems(ADBE Quote - Cramer on ADBE - Stock Picks) surpassed the Street's third-quarter earnings expectations Tuesday and guided higher.
The San Jose, Calif. software company said revenue rose 4% to $887.3 million, from $851.7 million in the same quarter of last year. Analysts were expecting a top line of $876.7 million, according to Thomson Reuters.
The developer of Web design and publishing software reported net profit fell 6.6% year over year to $191.6 million, or 35 cents a share, from $205.2 million, or 34 cents a share, in the year-ago period, when the number of shares outstanding was greater by 10%.
Excluding special charges, EPS was 50 cents. Analysts were looking for 46 cents a share, less items.
Deferred revenue totaled $232.4 million, up 21% year over year. Operating margin was 24.7%, vs. 29.9% one year ago. Excluding charges, operating margin was 39.7%, compared to 40% for the same quarter of last year.
For the fourth quarter, Adobe projected revenue ranging from $925 million to $955 million and EPS, less items, of 51 cents to 53 cents. Analysts were expecting $939.4 million and EPS, less items, of 51 cents.
Adobe's dominant Flash software for playing Web video is coming under increasing pressure from Microsoft's(MSFT Quote - Cramer on MSFT - Stock Picks) Silverlight, which was used by NBC, which is jointly owned by General Electric(GE Quote - Cramer on GE - Stock Picks) and Vivendi, to stream Olympics coverage.