Design tools maker Adobe announced preliminary results much lower than expected for its fourth quarter, prompting a restructuring and the elimination of 600 jobs. Adobe officials said weak demand for the company’s Creative Suite 4 family of products – which just began shipping during the quarter -- hurt fourth-quarter results.Adobe Systems provided preliminary financial results for its fourth quarter
and said the company has fallen short of projects and will eliminate 600 jobs.
Adobe, maker of popular design and development tools for creative professionals,
said preliminary results for the fiscal fourth quarter ended Nov. 28 show
revenue of between $912 million and $915 million, well below the $925 million
to $955 million the company projected.
"The global economic crisis significantly impacted our revenue during
the fourth quarter," said Shantanu Narayen, the company's chief executive,
in a statement. "We have taken action to reduce our operating costs and
fine-tune the focus of our resources on key strategic priorities."
The company cited weaker-than-expected demand for its new Creative Suite 4
family of products that began shipping in the fourth quarter in North
America and Europe as the main cause for
the shortfall in fourth-quarter revenue.
Adobe also announced a restructuring, resulting in the loss of 600 jobs, or 8
percent of its work force.
Moreover, the restructuring will result in anticipated pre-tax charges
totaling approximately $44 million to $50 million, Adobe officials said. The
company expects approximately $28 million to $30 million of the restructuring
charges to be recorded in the fourth quarter of fiscal year 2008.
Meanwhile, according
to published reports, Adobe will not be exhibiting on the show floor at the
Macworld Conference & Expo 2009 to be held in January.
Read the rest of this article on eWEEK.com.
