Aileen Gallagher
Adobe Systems (ADBE Quote - Cramer on ADBE - Stock Picks) said Tuesday it is experiencing a slowdown in some geographic areas, mainly in the U.S., that could affect its revenue outlook for the first fiscal quarter.
The company blames the slowdown, which it says is affecting all of its product segments, on weakened economic conditions. "At this point in the quarter with one month to go, we can see that the deteriorating economy, particularly in the U.S., is starting to affect us," the company said in a statement. "In light of this situation, we are closely monitoring our spending and prudently managing our business to meet our bottom line guidance for the quarter. Although the near-term outlook for the economy is uncertain, we believe the long-term drivers of our future growth around network publishing are still intact." In December the software maker said it expects revenue to grow by 25% in the first quarter and in fiscal 2001 beyond the $1.27 billion posted last year. Thirteen analysts polled by First Call/Thomson Financial are calling for the company to post earnings of 30 cents a share for the quarter, up from 24 cents in the previous year's first quarter. Shares of Adobe lost $1.25, or 2.3%, to close at $52.75 at the end of regular-session Nasdaq trading, but fell to $44.31 in recent after-hours Island activity.
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