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Technology Stocks : Adobe (adbe) opinions -- Ignore unavailable to you. Want to Upgrade?

To: LemonHead who wrote (2915)	9/16/2002 2:35:38 PM
From: chaz	Read Replies (1) \| Respond to of 3111

From WR Hambrect 9/16/02 ADBE: Slight Upside Masks Continued Photoshop, Acrobat Struggles; Maintain Hold Yesterday, after the market close, Adobe Systems reported results for FQ2:02, which ended August 31. Revenue of $285 million and pro forma EPS of $0.22 exceeded our estimates of $278 million and $0.19; Street consensus was $277 million in revenue and $0.25 in pro forma EPS. Photoshop 7 was weak, as full unit sales continue to decline sharply, which bodes poorly for revenue growth. One full unit of Photoshop provides 4x the revenue of one upgrade unit. If Photoshop new units do not keep pace with upgrade units, or worse, decline, it becomes mathematically very difficult for total Photoshop revenue to grow. “Core” Acrobat was very weak and may put Adobe’s growth-stock valuation at risk. Optimism regarding Acrobat 6 should be viewed against actual results. We are increasing our FQ4:02 revenue estimate from $278 million to $280 million and decreasing our EPS estimate to $0.21. We maintain our HOLD rating. Full Report: wrhambrecht.com Chaz