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Adobe net to top forecasts
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June 2, 1999: 9:59 a.m. ET
Graphics software producer plans 9% workforce reduction in streamlining
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NEW YORK (CNNfn) - Adobe Systems Inc., the graphics software publisher, said it will post better-than-expected second-quarter earnings and plans to reduce its workforce by 9 percent in a streamlining effort.
In a statement following a conference call with analysts, San Jose, Calif.-based Adobe said it now expects its second-quarter operating profit to be "slightly above" the 62-cent to 66-cent per diluted share range it estimated in mid-March. The consensus of analysts surveyed by First Call Corp. had anticipated earnings of 64 cents a share.
Sales are expected to be between $245 million and $246 million, the top end of analysts' estimates, the company said.
To cut costs and boost profits, Adobe said it will reduce its workforce by 250 employees through the remainder of this year. About 60 percent of the eliminated positions will come from Adobe's European headquarters in Edinburgh, Scotland, with the remaining job cuts coming from its internal operations in California.
The company said the restructuring should cost Adobe about $15 million, which will be applied as a charge to its second-quarter earnings. Adobe said it expects the charge will be offset by non-operating income.
Trading of Adobe shares were halted late Tuesday amid speculation the company may be involved in an acquisition. But Wednesday morning's conference call did not address that issue.
Adobe's shares fell 1-5/8 Tuesday to 72-1/2. 
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Adobe
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