Adobe CFO Garrett to Retire, Company Books Charge and Raises Guidance

By Maria Armental 

Adobe Systems Inc. finance chief Mark Garrett is retiring from the company after spending more than a decade in that role.

The cloud-based software provider said Monday that Mr. Garrett, 60 years old, and general counsel Mike Dillon, 59, will retire later this year, but both will remain in their posts until successors are appointed.

Before joining Adobe in 2007, Mr. Garrett was senior vice president and chief financial officer at EMC Software Group, within EMC Corp. Mr. Garrett helped oversee Adobe's shift to a subscription-focused business model, and over his tenure recurring revenue has grown to more than 85% from 5% more than a decade ago.

"Mark and Mike have been phenomenal leaders and have played a pivotal role in making Adobe the company it is today. I'm grateful to both of them for their many contributions to Adobe's growth and future success," said Chief Executive Shantanu Narayen in prepared remarks.

Adobe also said Monday it will book a roughly $85 million one-time charge in the first quarter tied to recent changes in U.S. tax law.

But the changes, the company said, are expected to drive "a significant increase" in earnings in fiscal 2018 as it benefits from a reduction in the corporate tax rate.

Adobe now expects to earn $4.72 a share, or $6.20 a share on an adjusted basis, up from its previous forecast of $4.40 a share, or $5.50 as adjusted. Revenue is expected to reach about $8.73 billion.

In the first quarter, the company expects to earn $1.05 a share, or $1.43 a share as adjusted. It had previously forecast a profit of $1.15 a share, or $1.27 adjusted.

"With ready access to our offshore cash, we will continue to evaluate investment opportunities to grow our business," said Mr. Garrett in prepared remarks, adding the company is "actively expanding our campuses in the Bay Area and Utah to accommodate the growth of our employee base."

As of Dec. 1, Adobe had about $5.82 billion in cash, with roughly 89% of that held offshore.

Shares rose 1.1% to $200.01 in after-hours trading.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

January 22, 2018 17:57 ET (22:57 GMT)

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