Adobe revenue misses on disappointing digital media sales

16/09/2014 - 22:14

(Reuters) - Photoshop maker Adobe Systems Inc reported a mere 1 percent rise in quarterly revenue that missed analysts' expectations, hurt by lower sales at its digital media business, which includes the Creative Cloud software suite.

Adobe shares fell nearly 5 percent in extended trading.

The company also said it expected adjusted profit 26-32 cents per share on revenue of $1.03 billion-$1.08 billion for the quarter ending November.

Analysts on average were expecting an adjusted profit of 31 share on revenue of $1.09 billion, according to Thomson Reuters I/B/E/S.

Revenue from Adobe's digital media business, which includes the Creative Cloud and document services, fell about 2.4 percent to $621.4 million in the third quarter ended Aug. 29.

Digital marketing revenue rose 8 percent to $336.6 million. Adobe offers marketing campaign management and analytics tools.

Total revenue rose to $1.01 billion, while analysts had expected $1.02 billion.

Net income fell to $44.7 million, or 9 cents per share, from $83 million, or 16 cents per share, a year earlier.

Excluding items, Adobe earned 28 cents per share.

(Reporting by Abhirup Roy in Bangalore; Editing by Joyjeet Das)