Adobe’s net income rises 54pc

22 Jun 2011

Net income for Adobe Systems Inc’s fiscal second quarter increased 54pc from a year ago as revenue rose 9pc, the maker of Photoshop, Acrobat and Flash software reported.

The company also reaffirmed its sales target for the year: to grow 10pc. If Adobe reaches that target, it would put the company in line to post annual revenue of US$4.18bn, more than US$4.11bn analysts are expecting.

Adobe’s net income in the three months to 3 June rose to US$229.4m, or 45 cents per share, from US$148.6m, or 28 cents per share, a year ago.

Revenue grew to US$1.02bn from US$943m a year ago, beating the US$996m analysts had expected.

Adobe said it expected Q3 revenue between US$1bn and US$1.05bn; analysts estimate US$1.02bn.

The company said it also expects to post 50 cents to 56 cents per share of adjusted earnings in the third quarter, which is on track with analysts’ expectations of 54 cents.

“Our strong Q2 performance demonstrates our strategy of enabling users to make, manage and measure great digital experiences is resonating with our customers,” said Shantanu Narayen, president and CEO of Adobe.

Despite the strong outlook, Adobe’s shares fell US$1.11, or 3.5pc, to US$30.90 in extended trading. The stock had closed the regular session up US$1.06, or 3.4pc, at US$32.01.

Photo: Shantanu Narayen, president and CEO of Adobe