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Adobe Systems, Inc. (ADBE) announced its third quarter financial results for fiscal year 2013, which saw a decrease in profit but an increase in “Creative Cloud” subscribers, driving its share price up 5.6% in after-hours trading. The Photoshop, Acrobat, and Illustrator maker reported earnings of $83M, or $0.16 per share, a stark contrast to its $201.4M and $0.40 earnings per share reported a year ago. Revenue dropped 7.9% to $995.1M while its operating margin tightened sharply from 25.8% to 11.1%. The company’s expenses in areas like research and development as well as marketing increased 8%. Adobe product sales revenue fell 28% while its subscription revenue jumped 73%. Adobe has shifted its focus from a packaged software business to subscription-based business, which has shown considerable growth this quarter, with marketing cloud revenues up 28% from this time last year.
Nice headline. Good to see you focusing on the things the market isn't. Shifting business models while still driving ~$1B in quarterly revenue (when the entire company did ~$2.8B in 2009) is pretty impressive. Hope you were able to cover your short bets, and that you didn't make any more. Uniformed shorts will get slaughtered in the next 2+ years on this stock. After that who knows, but you're in for a tough time near term.