Adobe Warns of Japan Weakness

Adobe Systems Inc.’s earnings rose 84 percent but the software maker warned of weakness in the current quarter as a result of business uncertainty in Japan. Shares fell four percent in trading Wednesday.

Chief Financial Officer Mark Garrett said the company reduced its revenue expectation for the second quarter by $50 million–or roughly one third of the original expectation for Japan–due to an uncertain business environment after the nation was rocked by an earthquake and tsunami.

The revenue hit is amplified, said Chief Executive Shantanu Narayen, because Japanese companies typically close sales in March, which is the end of the fiscal year for many of them. However, he said, the tragedy hasn’t changed Adobe’s optimism about the market and its long-term growth prospects.

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