Adobe earnings are out and CS5 selling well

[Danno Anderson]

SAN FRANCISCO (MarketWatch) -- Adobe Systems Inc. on Tuesday posted a sharp gain in quarterly profit, as the maker of design software continues to rebound on brisk sales of its flagship product.

In addition, the company said its board of directors has authorized it to repurchase up to $1.6 billion in common stock, through the end of fiscal 2012.

San Jose, Calif.-based Adobe (ADBE 32.11, -0.65, -1.99%) said its second-quarter net income rose to $148.6 million, or 28 cents a share, from $126 million, or 24 cents a share, in the same period last year. Revenue for the period ended June 4 rose to $943 million from $704.7 million.

In a statement, Adobe Chief Executive Shantanu Narayen pointed to strong demand for Creative Suite 5, the company's flagship software bundle.

"It was a strong quarter out of the gate for Creative Suite 5," said Edward Jones analyst Andy Miedler.

 

[Tom Lowe]

Interesting how they are able to make big profits while essentially inviting private individuals to 'pirate' their software. They really only ask companies and institutions to pay. In fact, they are even allowing updates on pirated CS5! Their strategy appears to be to allow kids and random people to download Photoshop, Premiere, etc, get them hooked on what is clearly a fantastic product, and then, once they reach the big leagues, to buy the license at work. If you grew up using Photoshop, you are going to want to keep using it at your job.

 

[Stephen Eckelberry]

I am editing a feature in Premiere, been a FCP & Avid editor for years. After a couple of weeks adjusting to the interface, and a liberal amount of cursing getting used to thing, I am pretty happy with it, and it is working out. Can't beat the workflow.