Publishing and design software maker Adobe Systems Inc. (ADBE: Quote) said Tuesday after the markets closed that its second quarter profit fell 2.4% from last year, hurt mainly by provision for income taxes even though revenue increased 10%.
However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations.
At the same time, the company gave a down-beat forecast for the third quarter and narrowed its fiscal 2012 adjusted earnings outlook range.
"Our strong Q2 results were driven by the successful launch of Creative Cloud and Creative Suite 6, strong Acrobat revenue and 35 percent year-over-year revenue growth in our Digital Marketing Suite business," said Shantanu Narayen, president and CEO of Adobe.
Adobe shares are currently losing 4.07% in after hours trading after closing the day's regular trading session at $32.89, up 26 cents. The shares trade in a 52-week range of $22.67 to $34.78.
For the first quarter ended June 1, 2012, the San Jose, California-based reported net income of $223.9 million or $0.45 per share, compared to $229.4 million or $0.45 per share for the year-ago quarter.
Excluding items, adjusted net income for the second quarter was $299.6 million or $0.60 per share, compared to $279.9 million or $0.55 per share in the prior year quarter.
On average, 25 analysts polled by Thomson Reuters expected the company to earn $0.59 per share for the second quarter. Analysts' estimates typically exclude special items.
Adobe Systems, famous for its Photoshop editing and Acrobat document-sharing software, said total revenue for the second quarter rose 10% to $1.12 billion from $1.02 billion in the same quarter last year. Twenty-three analysts had a consensus revenue estimate of $1.11 billion for the second quarter.
Product revenue for the quarter grew 5% from a year ago, while subscription revenue rose 46% and services and support revenue increased 12% from last year.
Looking forward to the third quarter, the company forecast revenue of $1.075 billion to $1.125 billion, earnings of $0.38 to $0.43 per share and adjusted earnings of $0.56 to $0.61 per share. Analysts currently expect the company to earn $0.61 per share on revenue of $1.13 billion for the third quarter.
For the fiscal year 2012, the company said it now expects revenue to grow 6% to 7%, compared to its prior forecast of 6% to 8% growth.
Adobe now forecasts fiscal 2012 earnings to be in the range of $1.69 to $1.76 per share, up from its previous guidance of $1.63 to $1.73 per share.
However, the company narrowed its fiscal 2012 adjusted earnings outlook to a range of $2.40 to $2.46 per share from its prior outlook of $2.38 to $2.48 per share.
Analysts currently expect the company to earn $2.44 per share on revenue of $4.49 billion for the fiscal year 2012.
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by RTT Staff Writer
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