Adobe Systems Inc, which had warned of a tough third quarter last month that would see it break even or post a loss (CI No 3,472), managed to eke out a small profit after restructuring charges and a poor showing in Japan. The San Jose-based desktop publishing company posted net income of $152,000 on revenue in line with its warning at $222.9m – a decline of 3.1% year-over-year. In the year-ago quarter, the company recorded net income of $53.4m, or $0.72 per share. The quarter’s numbers included a $37.1m restructuring charge stemming from the company’s decision to reduce staff by 350, about 12% of its total workforce, in an effort to cut expenses by $50m – $60m annually. On a normalized basis, excluding non-recurring charges and gains, operating income was $33.8m, net income was $25.2m and earnings per share were $0.37, two cents above analysts’ expectations but well short of the $0.52 expected before the profit warning. As Adobe had already said, revenues for the quarter were adversely impacted by the financial situation in Japan, where sales fell $25.2m, or 42%, to $35.1m. Application revenue for the quarter was $182.1m, compared to $184.9m in the year-ago period. Licensing revenue was $40.8m, compared to $45.2m last year. Nine-month net income fell 60.8% to $54.9m on revenue down 5.4% at $648.1m. Earnings per share for the nine-month period fell 57.4% to $0.80.
