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Technology Stocks : Adobe (adbe) opinions
ADBE 340.51-1.7%1:25 PM EST

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To: laleh who wrote (1905)10/24/1997 11:12:00 AM
From: Peter Shaw   of 3111
 
Laleh,

ADBE derived 18% of it's revenue in 1996 from the Asia/Pacific, Japan, and Latin America segment. For operating net income, it was a far higher percentage, but that suffers from the vagaries of GAP (I suspect R&D is attributed to domestic operations). In any case, that is a fast growing part of the company, and weakness is already impacting Japan. Without the regional neighbors pushing forward on the economic front, this will hurt growth over the next few quarters.
As software is not capital goods intensive, ADBE does not benefit from reduced supplier costs out of the Asian region.

Good Luck,

Peter Shaw
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