Friday 30 September 2016

Photoshop maker Adobe reports better than expected profit

Published 17/06/2015 | 07:44

Adobe company logos are seen in this picture illustration taken in Vienna July 9, 2013. Picture taken July 9, 2013. To match Special Report TAX-BIGTECH/ REUTERS/Leonhard Foeger
Adobe company logos are seen in this picture illustration taken in Vienna July 9, 2013. Picture taken July 9, 2013. To match Special Report TAX-BIGTECH/ REUTERS/Leonhard Foeger

Photoshop maker Adobe Systems has reported a better-than-expected profit for the sixth straight quarter, helped by a 12pc sequential jump in annualized recurring revenue in its digital media segment.

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However, the company's shares fell about 2pc in extended trading after it forecast lower-than-expected revenue and profit for the current quarter.

Adobe said on that it expected an adjusted profit of 45-51 cents per share on revenue of $1.18bn-$1.23bn for the third quarter.

Analysts were expecting a profit of 54 cents per share and revenue of $1.25bn, according to Thomson Reuters I/B/E/S.

Adobe is switching from traditional box licenses to web-based subscriptions for its Creative Cloud software bundle for more predictable recurring revenue. Online subscriptions let customers access the latest software versions for a monthly payment.

The company said it expects revenue in its print and publishing business to be relatively flat in the current quarter with the second.

Adobe earlier launched Adobe Stock, a collection of 40 million photographs, illustrations and graphics, available in 36 countries and 13 languages.

The company's net income rose to $147.5m, or 29 cents per share, in the second quarter ended May 29, from $88.5m, or 17 cents per share, a year earlier.

Excluding items, the company earned 48 cents per share, beating analysts' average estimate of 45 cents per share.

Total revenue rose 8.8 percent to $1.16bn, in line with analysts' average estimate.

Reuters

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