Adobe Systems Inc. (Nasdaq: ADBE) said on Wednesday that it will cut 250 jobs, or about 9 percent of its staff, and take a $15 million charge. The graphics software company also expects second quarter sales and earnings to be above expectations.
Shares of Adobe dipped 3/4 to 71 3/4 in lat morning trade.
Adobe has delivered since last year's third quarter warning of weak overseas sales. Adobe cut 10 percent of its staff. These recent cuts will continue to cut Adobe's international staff, about 100 of the 250, mainly at its headquarters in Edinburgh., Scotland.
The San Jose, Calif. company is hosting a conference call with Wall Street analysts that began at 9 a.m. EST.
Adobe also said in a statement that it expects earnings for its May quarter to be "slightly above" the company's previous forecast between 62 cents a share and 66 cents. Revenue for the quarter is expected to be near the top of analysts' estimates, close to $246 million. The company expects to maintain its commitment to a 15 percent growth rate in sales for the year.
First Call Corp.'s survey of 10 analysts forecasts earnings of 64 cents a share for the second quarter. Results are scheduled to be posted June 17 after market close.
Adobe easily surpassed first quarter expectations, earning 60 cents a share for the three-month period.
Shares dropped 1 5/8 to 72 1/2 on Tuesday.