By Jim Finkle
BOSTON, June 22 (Reuters) - Adobe Systems Inc's revenue surged on the launch of a new version of its design software but profits did not grow as quickly, causing its shares to fall.
Adobe also said its board had authorized the company to buy back up to $1.6 billion of its own stock.
Revenue rose 34 percent from a year earlier to $943 million, handily beating the average analyst forecast of $906 million.
The software maker, whose chief rival is Apple Inc, posted per-share profit, excluding items, of 44 cents, for its fiscal second quarter ended June 4, compared to the average analyst forecast of 42 cents, according to Thomson Reuters I/B/E/S.
Adobe started selling its CS5 line of design programs on April 30, about a month before the close of the quarter. Customers have praised the software, whose titles include Photoshop, Flash and Illustrator. That's a sharp contrast to CS4, which was released in the depth of the recession in 2008 to lukewarm reviews.
'The product cycle looks great. Unfortunately it's not coming down to the bottom line,' said Jefferies & Co analyst Ross MacMillan.
The company posted second-quarter net income of $149 million, or 28 cents per share, compared with $126 million, or 24 cents, a year earlier.
Shares of the San Jose, California-based company fell 2.3 percent to $32.00 in extended trade. The shares had closed down 39 cents at $32.74 on Nasdaq.
(Reporting by Jim Finkle; Editing by Phil Berlowitz) Keywords: ADOBE/ (jim.finkle@thomsonreuters.com; + 1 617 856 4344; Reuters Messaging: jim.finkle.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
BOSTON, June 22 (Reuters) - Adobe Systems Inc's revenue surged on the launch of a new version of its design software but profits did not grow as quickly, causing its shares to fall.
Adobe also said its board had authorized the company to buy back up to $1.6 billion of its own stock.
Revenue rose 34 percent from a year earlier to $943 million, handily beating the average analyst forecast of $906 million.
The software maker, whose chief rival is Apple Inc, posted per-share profit, excluding items, of 44 cents, for its fiscal second quarter ended June 4, compared to the average analyst forecast of 42 cents, according to Thomson Reuters I/B/E/S.
Adobe started selling its CS5 line of design programs on April 30, about a month before the close of the quarter. Customers have praised the software, whose titles include Photoshop, Flash and Illustrator. That's a sharp contrast to CS4, which was released in the depth of the recession in 2008 to lukewarm reviews.
'The product cycle looks great. Unfortunately it's not coming down to the bottom line,' said Jefferies & Co analyst Ross MacMillan.
The company posted second-quarter net income of $149 million, or 28 cents per share, compared with $126 million, or 24 cents, a year earlier.
Shares of the San Jose, California-based company fell 2.3 percent to $32.00 in extended trade. The shares had closed down 39 cents at $32.74 on Nasdaq.
(Reporting by Jim Finkle; Editing by Phil Berlowitz) Keywords: ADOBE/ (jim.finkle@thomsonreuters.com; + 1 617 856 4344; Reuters Messaging: jim.finkle.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.