ADOBE SYSTEMS INC. $34 - Nasdaq symbol ADBE

ADOBE SYSTEMS INC. $34 (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 496.2 million; Market cap: $16.9 billion; Price-to-sales ratio: 3.9; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) makes software that lets computer users create, edit and share documents in the popular PDF format. As well, graphic designers use Adobe’s software to create print publications and web pages. Adobe gets 30% of its sales from Europe.

In its fiscal 2012 first quarter, which ended March 2, 2012, Adobe’s earnings fell 21.1%, to $185.2 million, or $0.37 a share. A year earlier, it earned $234.6 million, or $0.46. Without unusual items, earnings per share fell 1.7%, to $0.57 from $0.58. Sales rose 1.7%, to $1.05 billion from $1.03 billion.

Customers are waiting for the new version of Adobe’s Creative Suite of publishing programs, which it will release later this year. That was the main reason behind the lower sales and earnings.

The stock trades at 14.0 times the $2.42 a share that Adobe will probably earn in fiscal 2012. The company also holds cash and investments of $2.8 billion, or $5.53 a share. Its long-term debt of $1.5 billion is just 9% of its market cap.

Adobe is a hold.

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