Adobe yesterday announced profitable third-quarter financial results for 2001.

The company achieved revenue of $292.1 million - compared to $328.9 million in the third quarter of 2000, and $344.1 million in the second quarter of 2001.

This yielded a net income (including non-operating gains and losses) of $40.3 million for the quarter - $21 million less than the previous quarter's income. Adobe yielded $78.3 million in last year's third quarter.

Acrobatic performance Bruce Chizen, Adobe president and CEO, said: "While I am disappointed that we fell short of our original revenue target, it is clear that our strategy of investing in Adobe Acrobat products is paying off. Revenue in this segment grew 45 per cent year-over-year.

"We demonstrated our ability to control expenses and deliver solid, bottom-line results in a difficult environment where we do not see any near-term improvement."

Sales decline Adobe attributes its declining performance on its Japanese sales, where the company has seen significant revenue decline.

Murray Demo, Adobe's senior vice president and chief financial officer, has a gloomy prognosis for the immediate future. He said: "Assuming continued weak economic conditions in each of our major markets, we are targeting our fourth-quarter revenue at $310-320 million.

"This has changed from our previous target, primarily due to the recent significant weakness in Japan. It does not include any potential economic impact of the recent national tragedy on fourth quarter business."