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Ahead Of The Bell: Adobe Systems

NEW YORK (AP) ¿ Shares of Adobe Systems Inc. should have more room to climb following recently announced job cuts, a Jefferies & Co. analyst said Wednesday.

Adobe, best known for its Photoshop, Flash and Acrobat graphics and publishing software, said late Tuesday it will cut 680 full-time positions to align costs with its fiscal 2010 budget. The cuts represent about 9 percent of its work force.

Jefferies analyst Ross MacMillan estimates the savings will add about 15 cents to 20 cents to Adobe's full-year adjusted earnings per share. He bumped his price target for the company's stock up to $40 from $37.

Though he called the jobs announcement a surprise, MacMillan said he expects additional cuts at Omniture Inc., a software company headquartered in San Jose, Calif., that Adobe bought in October. Adobe, also based in San Jose, has already cut about 108 jobs at Omniture, or 9 percent of Omniture's work force.

The latest cuts will happen at its own operations, Adobe said.

The cuts come almost a year after Adobe slashed 600 jobs, or 8 percent of its workers, because of slowing sales.

Technology companies continue to shed jobs despite a recovering economy. This week, Sprint Nextel Corp. said it will eliminate 2,000 to 2,500 positions, while video game maker Electronic Arts Inc. said it is cutting 1,500 jobs.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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