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Adobe Systems Optimistic on Earnings

October 16, 1998|Bloomberg News

Adobe Systems Inc. said its fiscal fourth-quarter earnings may exceed estimates as the new version of its Illustrator software boosted sales. Adobe, the top maker of desktop graphics software, makes the PageMaker, Illustrator and PhotoShop programs. It said earnings may be 60 cents to 65 cents a share and that revenue will be $240 million to $245 million. Adobe was expected to earn 56 cents, the average estimate of analysts polled by First Call Corp. Adobe said early in the quarter that it had released Illustrator, a program to create illustrations and artwork, which helped boost sales this quarter. Last week, co-Chairman and Chief Executive John Warnock said the company hadn't seen any more erosion in Japanese markets. But he warned, "We remain cautious about the overall global economic conditions, particularly in Japan and other parts of Asia." Adobe expects operating expenses to be $146 million to $151 million, compared with $143 million a year ago. The San Jose-based company will report results Dec. 16. Its shares rose $3.19 to close at $35.56 on Nasdaq. The announcement was made after the close of U.S. trading.

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