Adobe Blames Slowing Economy As it Warns of Lower Revenue for 1Q
Press release from the issuing company
San Jose, Calif., (January 30, 2001) (Nasdaq:ADBE)--Adobe Systems Incorporated today is providing an intra-quarter update on business for its first quarter in fiscal 2001, which ends March 2, 2001. The Company is also announcing that, in support of SEC Regulation Fair Disclosure rules, it will provide similar intra-quarter business updates near the end of the second month of its fiscal quarters going forward.
In its first quarter fiscal 2001 intra-quarter update, Adobe announced today that it is experiencing a slow-down in some geographic market areas, primarily in the United States. The Company attributes the slow-down, which is affecting all of its product segments, to weakening economic conditions, and states that the softness in the U.S. could affect its revenue outlook for the quarter. The Company is also spending cautiously to achieve its stated operating profit goals for the first quarter.
"At this point in the quarter with one month to go, we can see that the deteriorating economy, particularly in the U.S., is starting to affect us," said Bruce R. Chizen, president and chief executive officer of Adobe. "In light of this situation, we are closely monitoring our spending and prudently managing our business to meet our bottom line guidance for the quarter. Although the near-term outlook for the economy is uncertain, we believe the long term drivers of our future growth around Network Publishing are still intact."
The Company plans to report its first quarter fiscal 2001 results on March 15, 2001 after the market closes.
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