Desktop publishing software house Adobe Systems Inc posted better-than-expected results for the first quarter and hinted at strong results for next quarter, as well. The San Jose-based company reported first-quarter net income up 43.1% at $38.3m on revenue up 14.7% at $204.4m. Earnings per share rose 57.9% to $0.63, besting the First Call consensus estimate of $0.52.
Application products revenue was $188.8m, up from $156.0m for the year-ago quarter and down from $207.7m for the fourth quarter. Adobe says that figure represents 25.9% year-over-year growth after deducting revenue from divested businesses. Licensing revenue, meanwhile, was $38.1m, compared to $41.9m last year and $39.0m in the prior quarter. The company insists it is on track for annual revenue growth of 15%, after divested businesses, with an annual operating margin of 25%. Backing up that claim, it says results for second quarter may exceed the current First Call consensus of $0.55. Based upon preliminary analysis, EPS could be in the range of $0.62-$0.66.
