Dec 16, 2005

Adobe profit up 38 pct, CFO resigns

Source: Yahoo News
Written By Lisa Baertlein

LOS ANGELES (Reuters) – Design software maker Adobe Systems Inc. (Nasdaq:ADBE – news) said on Thursday its quarterly profit jumped 38 percent, topping expectations and sending shares up almost 4 percent, as it benefited from the explosion in digital content.

The company, known for its Photoshop editing and Acrobat document-sharing software, also said Chief Financial Officer Murray Demo had resigned to spend more time with his family and that a search for his replacement had begun.

Also, in the wake of its recent acquisition of Macromedia, Adobe is cutting about 10 percent of workers in the combined company, or between 650 to 700 jobs, distributed roughly equally around the world, Adobe Chief Executive Bruce Chizen told Reuters in a telephone interview.

San Jose, California-based Adobe said net income in its fiscal fourth quarter ended December 2 rose to $156.3 million, or 31 cents per share.

Revenue grew to $510.4 million from $429.5 million, also helped by the growing use of digital devices and rising broadband use.

The quarterly results beat analysts’ average estimates calling for earnings of 29 cents a share on revenue of $507 million, according to Reuters Estimates.

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