Submitted by Fox First at Ten on September 19th
SAN JOSE, Calif. (AP) - Adobe Systems Inc., maker of such popular software as Adobe Reader and Photoshop, said Wednesday that its fiscal third-quarter net income inched higher, matching Wall Streets' expectations. But its earnings forecast was weaker than expected, and its shares slipped in after-hours trading.
Adobe earned $201.4 million, or 40 cents per share, up 3 percent from $195.1 million, or 39 cents per share, in the same period a year earlier.
Adjusted earnings were 58 cents per share in the latest quarter.
Revenue rose 7 percent to $1.08 billion.
Analysts, on average, expected adjusted earnings of 58 cents per share on revenue of $1.1 billion, according to FactSet.
For the current quarter Adobe forecast earnings of 34 to 39 cents per share. It expects adjusted earnings of 53 to 58 cents per share on revenue of $1.08 billion to $1.13 billion.
Analysts estimate earnings of 67 cents per share on revenue of $1.21 billion.
The company, based in San Jose, Calif., said its forecast factors in the addition of 125,000 new subscribers to its Creative Cloud service, which offers online versions of its software products through subscriptions, versus a download or physical package, at a lower cost. Adobe said it had about 200,000 paying subscriptions to Creative Cloud at the end of the third quarter.
Adobe shares slid 9 cents to $33.03 in after-hours trading.
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