Adobe reports financial hits and misses
Adobe Systems Inc, maker of Photoshop and Acrobat software, reported a quarterly profit in line with estimates but missed revenue expectations due to currency effects.
Net income for the third quarter was $201.3 million, or 58 cents per share, excluding items, as expected by analysts polled by Thomson Reuters I/B/E/S.
Adobe said on Wednesday that revenue rose slightly to $1.08 billion from a year earlier, but missed Wall Street estimates of $1.10 billion.
Adobe said the currency hit amounted to about $9 million.
For the fourth quarter Adobe aims to achieve revenue of $1.075 billion to $1.125 billion and EPS, excluding items, of 53 cents to 58 cents a share.
These targeted ranges factor in 25,000 additional new Creative Cloud subscriptions in the quarter, the company said.
Adobe launched its Creative Suite 6 – which includes Photoshop, Illustrator, InDesign, Flash and Dreamweaver – and the Web-based Creative Cloud products in the second quarter.
Analysts have expressed concern that the Web-based subscription service will hurt Adobe’s financial growth at least over the short term.
Adobe shares fell 0.7 percent in after hours trading to $32.90, after closing up 1.69 percent at $33.12.
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