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Adobe Systems, Inc. (Nasdaq: ADBE) plunged US$4.69 to $48.06 early Wednesday after the software maker issued a warning about results for the first quarter ending March 2nd.
The company said it is "experiencing a slowdown in some geographic market areas, primarily in the United States," which "could affect its revenue outlook" for the quarter.
Adobe added that it is spending cautiously to achieve its goal of attaining an operating profit for the quarter.
"At this point in the quarter, with one month to go, we can see that the deteriorating economy, particularly in the U.S., is starting to affect us," said president and chief executive officer Bruce R. 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," Chizen said.
Chizen remained optimistic about the company's prospects over the long run.
"Although the near-term outlook for the economy is uncertain, we believe the long-term drivers of our future growth around network publishing are still intact," he said.
Adobe said it plans to report first-quarter results after the close of trading on March 15th.
Adobe, based in San Jose, California, makes graphic design software for use in Web, print, video, wireless and broadband publishing. The company reported fourth-quarter revenue of $355.2 million, up from $281.8 million a year earlier, as operating profit rose 51 percent.
Earlier this week, Adobe and Barnesandnoble.com (Nasdaq: BNBN) announced that they are offering a new e-book about the television program "Survivor: The Australian Outback," at the Barnesandnoble.com site, together with a free Adobe Acrobat e-book reader.
Adobe shares set a 52-week high of $87.31 in November.
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