Adobe Systems beat expectations on Monday as its fourth quarter profit jumped 21 percent and its a forecast were ahead of analysts estimates on increased demand for its Creative Suite programs.
Net income for the quarter ending Nov. 30 was $222.2 million, or 38 cents a share, compared with $183.2 million, or 30 cents per share, in the year-ago period the company said late Monday.
Sales jumped to a record $911.2 million, up 34 percent from a year ago and easily exceeding the company's own estimates of $860 million to $890 million.
The world's largest maker of graphic design software benefited from strong demand for Creative Suite 3, which includes the industry standard Photoshop software for editing photos, as well as Web design and video software.
Chief Executive Officer Shantanu Narayen, who took over from Bruce Chizen this month, predicted first- quarter earnings that topped estimates, and reaffirmed a forecast for 13 percent sales growth in 2008.
As we enter fiscal 2008, we are performing exceptionally well and the Company is positioned to achieve a sixth consecutive year of double-digit growth, Narayen said.
In November, CEO Bruce Chizen said he would step down on Dec. 1, to be replaced by president and chief operating officer Shantanu Narayen. Narayen, who has worked at Adobe since 1998, served as president and COO for almost three years.
Chizen worked as Adobe's CEO for 14 years. Until the end of fiscal 2008, he is serving part time as a strategic adviser to the company, and will be on Adobe's board through the spring.
The company also authorized the repurchase of 30 million shares, adding to the 20 million buyback approved in April.