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California and the West

Shares of Adobe Surge on Forecast

September 15, 2006|From Times Wire Services

Adobe Systems Inc. stock jumped in after-hours trading Thursday after the maker of graphic-design software issued a profit forecast that topped analysts' estimates.

Shares of Adobe jumped 7% in extended trading after rising 12 cents to $33.65 during the regular session.

The San Jose-based company said profit for this quarter would be as much as 34 cents a share on sales of as much as $685 million. Analysts surveyed by Thomson Financial expected revenue of $668.8 million, or 32 cents.

Net income for Adobe's fiscal third quarter ended Sept. 1 also topped expectations despite declining 35% to $94.4 million, or 16 cents a share, from $144.9 million, or 29 cents, a year earlier. Revenue jumped sharply to $602.19 million, from $487.04 million in 2005.

The company disclosed Thursday that it spent $70 million in the third quarter on direct and indirect acquisition costs of Macromedia Inc.

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