Overseas sales boost Adobe results

Software specialist Adobe Systems has reported a 41 percent increase in second-quarter profit as strong revenue growth overseas offset flat sales in the United States.  ┬á Adobe, whose brands include Photoshop, Flash and Acrobat, revealed net income in the three months to May 30 of $214.9 million, up from $152.5 million in the same quarter a year ago. ┬á┬á Second quarter revenue rose 19 percent to $887 million, led by a 40 percent increase in sales in Europe. Revenue grew 38 percent in Asia and just 0.1 percent in the United States.┬á┬á However, the company issued a revenue outlook that disappointed some investors, sending its shares down 2.5 percent, saying it expected revenue in the third quarter to be in a range of $855 million to $885 million. ┬á┬á Chief executive Shantanu Narayen said that while Adobe had so far weathered the US economic slowdown, this could change. "I'm not an economist,ÔÇØ he said. ÔÇ£All I can do is reflect on what I have seen so far. Demand for our products remains strong. (But) we are not immune to a recession." ┬á┬á Narayen said he expected international sales to continue to be strong, however, with Eastern Europe, Brazil and China offering opportunities for growth as software piracy declines. ┬á┬á In the first two quarters of this year, sales in Europe, the Middle East and Africa accounted for 35 percent of revenue, compared with 33 percent in the whole of last year and 30 percent the year before. ┬á┬á Meanwhile, US sales have fallen to 44 percent of revenue, from 49 percent of revenue two years ago. "We expect to see the trend toward international revenue continue," Narayen said.  Read AdobeÔÇÖs statement in full here.┬á┬á┬á  *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á