Adobe (ADBE) Affirms Q4 Outlook, Issues Concerning FY12 Guidance; to Restructure Amid Digital Media, Marketing
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Price: $42.43 -0.79%
EPS Growth %: -38.6%
Financial Fact:
Products: 51.98M
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ANF, DXLG, FL, More
EPS Growth %: -38.6%
Financial Fact:
Products: 51.98M
Today's EPS Names:
ANF, DXLG, FL, More
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Adobe Systems Incorporated (Nasdaq: ADBE) today provided a business update for its fourth quarter fiscal year 2011, ending Dec. 2, 2011 and also into 2012. The company also announced plans to further align its business around the explosive growth categories of Digital Media and Digital Marketing solutions.
From the release:
"Adobe is investing aggressively in Digital Media and Digital Marketing, two growing market areas. In Digital Media, the company is the industry leader in content authoring solutions, enabling customers to create, distribute and monetize digital content. In Digital Marketing, the company intends to be the leader in solutions to manage, measure and optimize digital marketing and advertising.
In order to better align resources around Digital Media and Digital Marketing, Adobe is restructuring its business. This will result in the elimination of approximately 750 full-time positions primarily in North America and Europe. We expect to record in the aggregate approximately $87 million to $94 million in pre-tax restructuring charges. Included in these charges are (i) approximately $17 million to $19 million primarily related to the consolidation of leased facilities and (ii) approximately $70 million to $75 million related to employee severance arrangements. We expect to record approximately $73 million to $78 million of these charges in the fiscal quarter ending Dec. 2, 2011."
Affirms Q4 sales of $1.075-$1.125 billion and non-GAAP EPS of 57-64 cents. Cuts its quarterly GAAP EPS guidance from 41-50 cents to 30-38 cents.
The company sees the above restructuring initiative to reduced FY12 sales growth by about 4-5 percent. Adobe now sees FY12 sales growth of 4-6 percent. Sees FY12 non-GAAP operating margins similar to those in 2011.
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From the release:
"Adobe is investing aggressively in Digital Media and Digital Marketing, two growing market areas. In Digital Media, the company is the industry leader in content authoring solutions, enabling customers to create, distribute and monetize digital content. In Digital Marketing, the company intends to be the leader in solutions to manage, measure and optimize digital marketing and advertising.
In order to better align resources around Digital Media and Digital Marketing, Adobe is restructuring its business. This will result in the elimination of approximately 750 full-time positions primarily in North America and Europe. We expect to record in the aggregate approximately $87 million to $94 million in pre-tax restructuring charges. Included in these charges are (i) approximately $17 million to $19 million primarily related to the consolidation of leased facilities and (ii) approximately $70 million to $75 million related to employee severance arrangements. We expect to record approximately $73 million to $78 million of these charges in the fiscal quarter ending Dec. 2, 2011."
Affirms Q4 sales of $1.075-$1.125 billion and non-GAAP EPS of 57-64 cents. Cuts its quarterly GAAP EPS guidance from 41-50 cents to 30-38 cents.
The company sees the above restructuring initiative to reduced FY12 sales growth by about 4-5 percent. Adobe now sees FY12 sales growth of 4-6 percent. Sees FY12 non-GAAP operating margins similar to those in 2011.
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