Adobe bucked recent industry trends yesterday when it announced fourth-quarter results in excess of analysts expectations. The company also named a new CEO.
Adobe announced an operating profit of $127.5 million for the quarter, compared with a profit of $90.9 million for the same period last year. This translates to 34 cents per share, five cents above analysts expectations.
For the entire fiscal year, Adobe racked up profits of $287.8 million or $1.13 per share. This came on $1.26 billion in revenue, representing 25 per cent year-over-year growth, according to the company.
Management movers John Warnock, co-founder and former chief executive officer (CEO) at Adobe, will take on the role of chief technology officer. Bruce Chizen will become CEO, and will join the board of directors. Chizen has served as president of Adobe since April of this year and will also retain that title.
Warnock said the move should allow him to focus on the creative side of software development, which is his primary passion. He had considered making the move for some time, according to Adobe.
Adobe's products include the applications Photoshop, Acrobat, Illustrator, FrameMaker, LiveMotion and GoLive.
Chizen said: "Despite some reports of an industry slowdown, we continue to see strong growth in the network-publishing economy - principally driven by the Internet. We are confident we can grow our revenue at least 25 per cent in the first quarter, and for the full fiscal year."
Adobe shares had dropped 13 per cent on Thursday to $57.31, following a rating downgrade by Morgan Stanley Dean Witter. After posting its financials, however, Adobe made a slight recovery in the after-hours markets, gaining as much as 5 per cent from its close.