The company said the layoffs, which are part of an effort to "better align resources around Digital Media and Digital Marketing," will involve full-time positions in both North America and Europe. Adobe expects the restructuring to result in pre-tax charges totaling between $87 million and $94 million. The proposed reduction represents roughly 8% of Adobe's employee base of more than 9,000.
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The stock was last quoted at $28.20, down 7.4%, on after-hours volume of more than 240,000, according to Nasdaq.com. Adobe also backed its adjusted earnings outlook for its fiscal fourth quarter ending this month, saying it still sees a non-GAAP profit of 57 to 64 cents a share on revenue of between $1.075 billion and $1.125 billion. The current average estimate of analysts polled by Thomson Reuters is for earnings of 60 cents a share in the quarter on revenue of $1.086 billion. Blue Nile Shares of Blue Nile(NILE) dropped sharply in late trades on Tuesday after the Seattle online diamond and jewelry retailer fell short of Wall Street's profit view for its third-quarter results and gave a below-consensus outlook for the fourth quarter. The company also said Diane Irvine has resigned as CEO and president, effective Nov. 11. Vijay Talwar, most recently senior vice president and general manager of International, was named interim CEO. Blue Nile said it earned $1.9 million, or 13 cents a share, for the three months ended Sept. 30 on sales of $75 million. The average estimate of analysts polled by Thomson Reuters was for a profit of 17 cents a share in the quarter on sales of $72.6 million. For the fourth quarter, Blue Nile sees earnings of 41 to 43 cents a share, below the current analysts' view of 45 cents a share. The stock was last quoted at $41.80, down 15.8%, on volume of nearly 150,000, according to Nasdaq.com. Based on Tuesday's regular session finish at $48.81, the shares were down more than 20% so far in 2011.
Wall Street was skeptical of Blue Nile ahead of the report with the 13 sell-side analysts covering the stock split between hold (11) and underperform (2). The median 12-month price target sits at $38, implying downside from current levels.
Irvine had served as CEO of Blue Nile since February 2008, according to the company's Web site, and was chief financial officer from December 1999, when Blue Nile was formed, through September 2007.
Other stocks moving in after-hours action included Activision Blizzard(ATVI), which fell more than 3% after the video game developer reported strong quarterly results and gave a solid outlook; Weight Watchers International(WTW) , which lost almost 10% despite its better than expected earnings; and Yahoo!(YHOO), which advanced more than 2% after announcing online display advertising agreements with AOL(AOL) and Microsoft(MSFT). -->To submit a news tip, send an email to: tips@thestreet.com
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