Adobe Profit Falls 30%, but Beats Expectations

Bloomberg News

San Jose-based Adobe Systems Inc., the No. 1 maker of software for sophisticated graphics, said its fiscal second-quarter earnings fell 30%, beating expectations, as a new version of PhotoShop buoyed sales. Adobe's net income was $29.3 million, or 43 cents a diluted share, from profit excluding charges of $42.1 million, or 57 cents, in the year-earlier period. Revenue fell 0.4% to $227.3 million from $228.3 million. Adobe, which makes sophisticated graphics and software, has been struggling to smooth out earnings as it faces weak demand in Asia and slowing sales of Macintosh software. Analysts expected sales to decline because of the lack of new products, yet the company's results beat expectations thanks to its new release of PhotoShop, software used by graphics professionals. Per-share earnings beat 39 cents, the average estimate of analysts polled by First Call. Adobe shares rose $2.31 to close at $44.38 on Nasdaq. The results were released after the close of trading.

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