Adobe Strengthens Outlook

Adobe Systems (ADBE) expects its fourth-quarter results to come in at the high end of its earlier targets, thanks to solid demand for its Acrobat and Creative Suite products.

In its mid-quarter update, the San Jose, Calif., software maker said it expects results to be at the high end of its September forecast for earnings of 27 cents to 29 cents a share and revenue of $490 million to $510 million. Analysts polled by Thomson First Call predict Adobe will post earnings of 29 cents a share and revenue of $506 million for the quarter ending Dec. 2.

Adobe said Acrobat, its document-viewing software, and Creative Suite, a set of design and layout products, are driving its fourth-quarter results. In addition, the company noted solid demand in all of its major geographic regions.

Adobe also said it continues to expect that its acquisition of Macromedia(MACR) will close in the fall, either in late November or December. Adobe agreed to buy Macromedia in April in a deal valued at the time at $3.4 billion.

On Monday, Macromedia reported 29% growth in its fiscal second-quarter net income, with earnings per share that topped analysts' mean estimate by 5 cents.

Adobe shares recently changed hands in after-hours trading at $32.15, up 16 cents.

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