Another pre-announced miss: Software maker Adobe (ADBE) says it will miss Q4 targets, and will cut 600 full-time positions globally.
- Adobe expects Q4 sales to come in between $912 million and $915 million, below its previous estimate of $925 million to $955 million, and below Wall Street’s consensus of $930 million. (Not terrible, actually.)
- The main reason: Weaker than expected demand for its Creative Suite 4 software, including Photoshop, etc.
- Adobe will lay off 600 workers worldwide. That will result in a pre-tax charge of $44 million to $50 million, about 60% of which will be written down in Q4.
- Adobe is aiming for $800 million to $850 million in Q1 revenue — below year-ago sales, and significantly below the Street’s $931 million consensus, but not far from the Street’s low estimate of $809 million.
Adobe’s Q4 earnings call is scheduled for Dec. 16.