Adobe provides preliminary Q1 fiscal 2009 results

Based on preliminary Q1 financial information, Adobe believes it will achieve revenue in the range of $783 million to $786 million. In addition, the Company believes it will achieve diluted earnings per share of approximately $0.30 on a GAAP basis, and $0.44 to $0.45 on a non-GAAP basis. The Company also estimates it will achieve a Q1 operating margin of 26.0 percent to 26.5 percent on a GAAP basis, and 37.0 percent to 37.5 percent on a non-GAAP basis.

Adobe’s first quarter revenue target range was $800 million to $850 million, with a diluted earnings per share target range of $0.30 to $0.35 on a GAAP basis, and $0.43 to $0.47 on a non-GAAP basis. The Company’s operating margin target range was 26 percent to 28 percent on a GAAP basis, and 37 percent to 38 percent on a non-GAAP basis. A reconciliation of GAAP and non-GAAP targets and preliminary financial results is available later in this press release.

The Company cited weakness in its creative and knowledge worker businesses as the primary reason for the revenue shortfall. Seasonal strength in Japan, as well as continued success with its LiveCycle enterprise business, helped to offset some of the weakness in the quarter.

"Despite worsening market conditions, we were able to manage expenses to deliver earnings and margin results within the target ranges we provided at the outset of the quarter," said Shantanu Narayen, president and chief executive officer.

Adobe also provided financial targets for its second quarter of fiscal year 2009. The Company stated it is targeting Q2 revenue of $675 million to $725 million. In addition, the Company said it is targeting a Q2 operating margin range of 21 percent to 26 percent on a GAAP basis, and 32 percent to 36 percent on a non-GAAP basis.