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April 29, 1994


By CBR Staff Writer

Responding to market concerns that its merger with Aldus Corp will lead to margin erosion, Adobe Systems Inc said it will take whatever steps necessary to keep its operating margin in the high 20% to low 30% range: it said it hasn’t seen a slowdown in printer sales; to protect margins, lay-offs and expense reductions are possible at the combined companies; chief executive John Warnock reiterated the perceived benefits from the merger – complementary corporate cultures, good geographic fit, shared visions of the future, and strong products, he said, adding that their combined size will be an advantage; he sees Adobe positioning itself with products to create and distribute information in the emerging world of digital communications; he added that he sees new growth opportunities for the company in the emerging home-office market for machines combining facsimile, computer printing, computer faxing and copying.

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