Friday, June 16, 2006
Adobe Systems posted lower second-quarter net income due to higher costs related to its Macromedia acquisition.
Adobe, also known for its Acrobat document-sharing software, said second-quarter net income fell to $123.1 million, or 20 cents per share, from $149.8 million, or 29 cents per share, a year ago.
Adobe also lowered its full-year 2006 profit and revenue forecasts due to weaker demand for its content-creation products.
"What we have seen in the last half of the quarter was a downward trend in our creative business, particularly our Creative Suite," Adobe said. "It is doing well, but not as well as expected."
Excluding items that also included a charge related to another acquisition and the expensing of stock-based compensation, its per-share earnings were 31 cents. This was above the average analyst forecast of 30 cents per share, as compiled by Reuters Research.
Adobe bought Macromedia last December for $3.4 billion to complement its strength in editing and distributing static content.
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