January 13, 2009 5:50 PM PST

Adobe downgraded; ex-Yahoo added to board

by Steven Musil
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Shares of Adobe Systems fell 7 percent Tuesday after a market analyst downgraded the company's stock from "market perform" to "underperform."

Share closed at $22.10, down $1.66, after FBR Research analyst David Hilal said in a research note that he cut his rating on Adobe's stock because the "shares have risen to a point where the risk-reward profile is unfavorable." Hilal also said Adobe depends too much on new unit sales and lacks recurring revenue from existing customers.

In other news, Adobe announced that former Yahoo executive Dan Rosensweig had joined the company's board of directors. Rosensweig, who served as Yahoo's chief operating officer for nearly five years before departing in 2006, was previously president of CNET Networks, publisher of CNET News..

Adobe also announced that board members Colleen Pouliot and Delbert Yocam would retire, effective March 31. Pouliot has served on the board since 2001, and Yocam has served for 18 years, Adobe said.

Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers. E-mail Steven.
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by adamphotographicdotcom January 13, 2009 10:13 PM PST
Hmmm. Surprise, people can't afford enormously high-priced software. I like Adobe products, but at some price point, I just feel like I am getting the shaft - Adobe found that price point.
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by xcopy January 15, 2009 10:02 AM PST
Have to agree. I've been on the Adobe treadmill for many years with multiple full-suite implementations, but I've had enough.

This last release (CS4 coming only 18 months after CS3) is definitely NOT a "must have" and with its inflated pricing is closing in on product churn. I'm tempted, but I'm going to let this one ripen on the shelves for a while......
by cronican February 12, 2009 10:53 AM PST
I had to laugh at "lacks recurring revenue from existing customers." My p.c. died and so I bought an iMAC. I contacted Customer Support on January 3rd 2009 to upgrade 2 programs and change platforms from p.c. to mac. I had an open ticket, faxed the required letter saying I'd destroy the "intellectual" property" and waited. And waited. When I called to inquire about my case I was rudely told that if I continued to call I'd be put at the back of the line. Wow. How's that for customer service? So I patiently waited another week. We are now at three weeks. I called again and a nice operator said he didn't know what the problem was and would put my ticket at the head of the line. I thanked him and hung up. And waited 2 more weeks. After 5 weeks of frustration I was angry! I explained my plight to the next person and said that I'd had enough and that I'd now like to re-register my old products and cancel my order. He was surprised that I hadn't received a disk in that time. I told him not only didn't I get a disk, I didn't get an email, phone call, letter or ANY type of communication while my ticket read "waiting for Adobe response." While I had been waiting for Adobe, I got my old p.c. fixed and it cost less for repairs (runs fine now!) than upgrading. So I thanked the guy (who was nice and did re-register my products) for saving me money!! If this is how returning customers are treated no wonder they have a poor track record with repeat customers. And guess what? At the end of the conversation, the customer rep said, "So would you like to upgrade now?" I think Adobe is in a parallel universe.
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