Adobe yesterday announced plans to cut 150 jobs - five per cent of its work force - and issued a profits warning, lowering its estimated fourth-quarter revenue projections.
The company attributed the moves to "weakened business" following the September 11 attacks. The company expects to return revenues of between $275 and $285 million in its fourth quarter. Its previous forecast was for revenues between $310 and $320 million.
"This is a much tougher year than we expected," Adobe CEO Bruce Chizen said during yesterday's financial-analyst meeting. He added: "There isn't as much revenue, and not as much revenue growth as we have anticipated.
"It's clear that the economic impact from events of the past two months is having an adverse effect on Adobe's business. In particular, we have seen greater weakening in our business in October, especially in the US and Japan."
Long-term outlook Chizen remained optimistic for the company's long-term growth, but warned the outlook for fiscal year 2002 "will be as it as today - weak". The company is targeting revenues of $1.3 billion for its next financial year.
Wall Street sliced $1.59 from the company's share value (5.24 per cent) in response. Adobe shares closed at $28.75, then dropped to $23.75 on the extended-trading market. Nasdaq closed down 1.89 per cent on the day, at 1667.41 points. Apple closed at $17.60, a fall of three cents (0.17 per cent) on the day.
Transit Adobe also announced PDF Transit, a software development kit for print shops, that enables them to create PDF-based print-submission and management services for customers.
The PDF Transit kit includes a client-builder tool and server components. Once created, a PDF Transit-based system enables customers to create, submit and digitally preview their print jobs. Meanwhile, print providers are able to configure the client software to generate PDF files that match the capabilities of their own output devices.