Adobe Profit Beats Lowered Expectations

Adobe Systems Inc. reported third-quarter profit above diminished expectations as the top maker of desktop-graphics software struggled with falling sales. Adobe said profit before charges and gains for the quarter ended Aug. 28 was $25.2 million, or 37 cents a diluted share, compared with a profit of $41 million, or 55 cents a share, a year ago. Analysts expected the company to earn 35 cents a share, according to a survey by First Call Corp. Before its profit warning last month, Adobe was expected to earn 52 cents a share. The San Jose-based maker of PhotoShop, Illustrator and PageMaker software said last month that it might report a third-quarter loss and would fire employees. The company said this week that it fired about 350 workers, or 12% of its work force, as Asia’s slump has slashed demand for its programs. Last month, Adobe rejected an unsolicited takeover bid from closely held rival Quark Inc. and hired Goldman, Sachs & Co. as an advisor. Adobe shares fell $1.19 to close at $26.81 on Nasdaq. The results were released after the close of U.S. trading.