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Adobe Restructures to Align Business around Digital Media, Marketing

November 9, 2011

San Jose, Calif.-based Adobe Systems provided an updated business plan for
its fourth quarter fiscal year 2011, ending Dec. 2, 2011.  The company also
announced plans to further align its business around digital media and marketing.

With aggressive investments in digital media and digital marketing, two growing market areas.  In digital media, the company’s content authoring solutions, enable customers to create, distribute and monetize digital content.  In digital marketing the company intends to manage, measure and optimize digital marketing and advertising.

Adobe is restructuring its business, resulting in the 750 full-time job cuts primarily in North America and Europe. The company expects aggregated approximately $87 million to $94 million in pre-tax restructuring charges. Included in these charges are approximately $17 million to $19 million related to the consolidation
of leased facilities and  approximately $70 million to $75 million related
to employee severance arrangements. It expects to record approximately $73
million to $78 million of the charges in the fiscal quarter ending Dec. 2,
2011.

With approximately four weeks remaining in the quarter, the
company believes it will achieve fourth quarter revenue within the $1.075
billion to $1.125 billion range it previously provided on Sept. 20, 2011.

“We expect to report record revenue within the fourth quarter target range we
previously issued,” said Mark Garrett, executive vice president and CFO of
Adobe.

Based on the impact of the restructuring charge the company expects to take in the fourth quarter, Adobe updated its targeted GAAP diluted earnings per share range to be $0.30 to $0.38 in the quarter.   The company had previously targeted a fourth quarter diluted earnings per share range of $0.41 to $0.50 on a GAAP basis.

Adobe continues to target a diluted earnings per share range of $0.57 to
$0.64 on a non-GAAP basis in the fourth quarter.

 

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