Adobe Systems, Inc. (Nasdaq: ADBE) plungedUS$4.69 to $48.06 early Wednesday after the software maker issued a warningabout results for the first quarter ending March 2nd.
The company said it is “experiencing a slowdown in some geographic marketareas, primarily in the United States,” which “could affect its revenueoutlook” for the quarter.
Adobe added that it is spending cautiously to achieve its goal ofattaining an operating profit for the quarter.
“At this point in the quarter, with one month to go, we can see that thedeteriorating economy, particularly in the U.S., is starting to affect us,”said president and chief executive officer Bruce R. Chizen.
“In light of this situation, we are closely monitoring our spending andprudently managing our business to meet our bottom-line guidance for thequarter,” Chizen said.
Chizen remained optimistic about the company’s prospects over the long run.
“Although the near-term outlook for the economy is uncertain, we believe thelong-term drivers of our future growth around network publishing are stillintact,” he said.
Adobe said it plans to report first-quarter results after the close oftrading on March 15th.
Adobe, based in San Jose, California, makes graphic design software for usein Web, print, video, wireless and broadband publishing. The companyreported fourth-quarter revenue of $355.2 million, up from $281.8 million ayear earlier, as operating profit rose 51 percent.
Earlier this week, Adobe and Barnesandnoble.com (Nasdaq: BNBN) announced that they are offering a new e-book about the television program “Survivor: The Australian Outback,” at the Barnesandnoble.com site, together with a free Adobe Acrobat e-book reader.
Adobe shares set a 52-week high of $87.31 in November.