Adobe Cuts Projections, Jobs
Citing the Sept. 11 terrorist attacks, Adobe Systems Inc. on Tuesday downgraded its fourth-quarter projections and cut about 150 jobs.
The Web publishing software company said it now expects revenues to come in between $275 million and $285 million, with earnings at 20 cents to 22 cents a share.
Before the attacks in New York and Washington, the San Jose, Calif., company had projected quarterly revenues of $310 million to $320 million and earnings of 27 cents to 28 cents.
Adobe President and CEO Bruce Chizen said business, particularly in the United States and Japan, has fallen dramatically in October.
"At this point in the quarter, it is clear that the economic impact from the events of the past two months is having an adverse effect on Adobes business," Chizen said in a prepared statement. "We will continue to balance the need for short-term profitability with the necessary investment for long-term growth."
Part of that balance includes the cutting of the 150 jobs, or about 5 percent of the companys work force. Adobe will take a restructuring charge of between $8 million and $10 million in the fourth quarter.
The company also said it expects revenues in fiscal year 2002, which begins Dec. 1, to grow 4 percent to 5 percent over 2001, to about $1.3 billion.
Adobe executives will update analysts on the companys financial status on Dec. 13.