Faced with growing weakness in it business, Adobe Systems announced Wednesday it will miss its previous revenue forecast.
But, the software maker said it expects to meet its profit forecast thanks to cost-cutting measures.
On Wednesday, Adobe shares were up nearly 9 percent in after-hours trading to US$17.75. During the regular trading session, Adobe closed up 2 percent to end the day at US$16.32 a share.
Adobe, which will report its first-quarter results on March 17, said it anticipates posting revenue of US$783 million to US$786 million in the quarter, compared with its previous forecast of US$800 million to US$850 million.
"Despite worsening market conditions, we were able to manage expenses to deliver earnings and margin results within the target ranges we provided at the outset of the quarter," Shantanu Nagayen, Adobe chief executive, said in a statement.
During the quarter, Adobe expects to release an operating profit of US$0.30 a share, based on a GAAP accounting basis. That performance is on the low end of its previous forecast of US$0.30 to US$0.35 a share.
Although a number of companies are shying away from offering a forecast for the coming quarter, Adobe stepped up to the plate to deliver its forecast.
Adobe expects to see a further deterioration in its revenue to US$675 million to US$725 million in the second quarter, the company noted.
This article was first published as a blog post on CNET News.
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