Adobe sales lower than expected

Adobe said Wednesday that falling Japanese demands meant its September to November sales would be lower than expected, but that it had net analyst estimates for its third quarter earnings.

The firm said it had met revised earnings expectations for the three months to the end of August, with profits of £27.5m ($40.3m) on sales of £199.4m ($292.1m). For the same period last year, the firm made a profit of £53.5m ($78.3m) on sales of £224.5m ($328.9m) for the same period a year ago. Revenues for March-May 2001 were £234.9m ($344.1m).

Adobe has been hit by the dotcom collapse and a decline in the advertising and marketing industries, all heavy users of its print and online design products.

However, revenue from the company's Adobe Acrobat products grew 45 per cent year-on-year.

Bruce R. Chizen, chief executive at Adobe said: "While I am disappointed that we fell short of our original revenue target, it is clear that our strategy of investing in Adobe Acrobat products is paying off."

"Assuming continued weak economic conditions in each of our major markets, we are targeting our Q4 fiscal 2001 revenue at [£212m-£218m] $310m-$320m. This has changed from our previous target primarily due to the recent significant weakness in Japan."The firm previously estimated revenues for the three months to November at £232m-£239m ($340m-$350m).