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blog author
Ed Moltzen
The Chart
March 18, 2009
Adobe, the maker of productivity and creativity software, provided its formal earnings last night and then some of its executives met in a conference call with financial analysts. While Adobe did, like everyone else, notice business declining since December, its CFO Mark Garrett provided some hope that at least in his segment the bottom may have been reached:

. . . (S)ince the beginning of February, we have started to see stability in the business. So for the past six weeks or so, on the channel side, we have seen more stability in the business. And this stable February run rate for the channel side of the business is the basis for this Q2 revenue range that we provided. And that revenue range, if you look out over kind of Q3 and Q4, would basically follow the same similar patterns we have seen from a seasonal perspective in the past.

Many may look at Adobe's software as the kind of technology purchase that could be postponed a few quarters, or canceled entirely, yet the company beat Wall Street expectations for its financial performance and it is indicating things have leveled off. It's too early to say, for sure, whether that could be a good sign for the rest of the technology industry but it's clearly not bad news.

Adobe executives said the market is embracing its software that helps create rich Internet content - - a wink and a nudge to startups and potential startups about where the earliest growth may be seen coming out of the recession.

A clearer picture of the tech landscape will begin to emerge in the next few weeks, when the first calendar quarter of the year comes to an end and bellwethers like Intel, Microsoft and IBM begin to report their quarterly earnings and provide some additional granularity.

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