Graphics and desktop publishing software house Adobe Systems Inc reported third-quarter results that easily topped expectations as new products were met with high demand. The San Jose-based company posted net income of $57.2m on revenue up 17% at $260.9m, compared to net income of $152,000 in the year-ago quarter. Earnings per share were $0.88, up from break-even last year.
Results for the quarter include $4.4m in restructuring and other charges, while the year-ago period saw similar charges of $37.9m. Net of the charges and one-time gains from the company’s venture programs, EPS was $0.80, well above the $0.74 consensus estimate from First Call.
Application products revenue for the quarter was $230.7m, compared to $182.1m for the year-ago quarter and $209.7m for the preceding quarter. Licensing revenue was $30.2m, down from $40.8m last year and $36.2m in the second quarter.
The generally strong results were driven by the shipment of Photoshop 5.5 in the quarter, and the continued success of Adobe Acrobat, the company said. In addition, the new professional page lay-out program, InDesign, was launched during the quarter and Adobe says appetite for it has resulted in the largest backlog for a new product in company history.
For the nine-month period, net income soared 156% to $140.4m as revenue rose 13.2% to $733.7m. EPS jumped to $2.18 from $0.80. Results include one-time charges of $19.8m and $38.5m for the current and year-ago periods, respectively.
