Design software maker Adobe Systems Inc
The maker of Photoshop and Acrobat software, whose sales are suffering because creative professionals have held off buying software upgrades it released last year, also reported fiscal first-quarter results in line with preliminary figures released two weeks ago.
While Adobe's quarterly sales fell short of its original forecasts, profit met its targets as layoffs and other cost-cutting measures offset the revenue shortfall.
Edward Jones analyst Andy Miedler praised Adobe Chief Executive Shantanu Narayen for keeping profits on track.
Adobe's management team is managing the business quite well and making proper adjustments which is allowing high profit levels to continue, Miedler said.
Narayen, who announced plans to cut 600 jobs, or about 8 percent of its workforce in December, said in an interview that he will be ruthless in cutting discretionary spending.
He added that he does not plan any more layoffs if the revenue continues to remain at these levels.
Adobe forecast profit, excluding items, of 31 cents to 38 cents per share in its second quarter ending May 29 on revenue of between $675 million and $725 million.
Analysts expect the software maker, whose rivals include Microsoft Corp
Two weeks ago Adobe told investors that first-quarter revenue missed targets set in December, but the company delivered profit in line with its projections by laying off workers and taking other actions to reduce costs.
Adobe reported first-quarter profit of 45 cents per share, excluding items, in line with its projection of 44 cents to 45 cents earlier this month. Revenue in the period ended February 27 fell 12 percent from a year earlier to $786 million, in line with its recent forecast of $783 million to $786 million.
The software maker posted first-quarter net income of $156 million, or 30 cents per share, versus $219 million, or 38 cents per share, a year earlier.
Shares of the San Jose, California-based company rose to $19.23 in extended electronic trade after closing up 68 cents at $19.13 on Nasdaq.
(Reporting by Jim Finkle; editing by Richard Chang and Jeffrey Benkoe)