Adobe sales slump as customers wait for CS3

Customers awaiting next version of Photoshop

21 March 2007 20:29 GMT / By Stuart Miles

Adobe today reported financial results for its first quarter ended March 2, 2007 showing sales had slumped in the first quarter compared to 2006 as customers wait for its latest version of its Creative Suite package due to be announced at the end of the month.

Adobe who has yet to offer a Vista compatible software package, or one that has been optimised for Apple’s Intel Macs posted revenues of $649.4 million, compared to $655.5 million reported for the first quarter of fiscal 2006 and $682.2 million reported in the fourth quarter of fiscal 2006. Adobe’s first quarter revenue target range was $640 to $670 million.

“Q1 was a solid quarter for Adobe, as we came in at the high end of our earnings target range and were within our targeted range for revenue”, said Bruce Chizen, chief executive officer of Adobe. “As Adobe prepares for the biggest product launch in our history, we are excited about our opportunities and bullish about our prospects for another year of strong performance.”

For the second quarter of fiscal 2007, Adobe announced it is targeting revenue of $700 million to $740 million on the back of CS3 becoming available and strong sales off the back of the software launch.