The mood was set in the US this week when Adobe's share price plummeted after the company warned that its revenue in the first quarter, which will end on March 2, will held back by a slow-down in the US economy which is already harming sales of all Adobe software. "At this point in the quarter, with one month to go, we can see that the deteriorating economy, particularly in the US, is starting to affect us," explained CEO Bruce Chizen. "In light of this situation we are closely monitoring our spending and prudently managing our business to meet our bottom line guidance for the quarter." A statement released by Adobe in the US noted that the company "is spending cautiously" to achieve its operating profit goals for the quarter. Adobe's results will be announced in the US after the close of trading on March 15.
There were no such problems for PeopleSoft, which lifted revenue 34 per cent from $US372 million to $US498 million in its fourth quarter to December 31. A loss of $US5.6 million in the previous fourth quarter was converted into a net profit after accounting for non-recurring items of $US44 million. The solid performance was attributed to PeopleSoft's Internet e-business applications. "In 2001, enterprises are widely adopting Internet technology to improve business operations," explained CEO Craig Conway. "With more than 1000 orders for PeopleSoft 8 in less than four months, market acceptance has been very strong."
StorageTek is conducting mild celebrations after recording its second consecutive profitable quarter. The company is not going overboard, however, since it is keenly aware that revenue declined in the fourth quarter to December 29. The bottom line did a handsome turnaround from a loss of $US25.8 million in the fourth quarter of 1999 to a net profit of $US30.8 million, but revenue slid from $US622.6 million to $US601.4 million. Recently appointed CEO Patrick Martin has given the green light to the hiring of 126 new sales staff in an effort to boost sales.
Borland's decision to change its name back from Inprise seems to have brought the developer a new ray of hope. In the fourth quarter to December 31 Borland lifted revenue from $US45.5 million to $US50.3 million and converted a loss of $US3.0 million in the fourth quarter of 1999 into a net profit of $US7.3 million. "Our outstanding performance in the fourth quarter caps off a momentous year of transition at Borland," noted Dale Fuller, the company's president and CEO. "Our renewed focus on product development, business execution and operational efficiency has created a solid foundation for even greater success in the year ahead."