SAN JOSE, Calif. (AP) -- Software company Adobe Systems Inc. said Tuesday that its fiscal second-quarter net income fell 2 percent, amid higher expenses. Revenue grew with strong sales of its Creative Suite product.
Adobe's revenue outlook and the midpoint of its earnings guidance for the current quarter was below analysts' expectations and shares slipped in after-hours trading.
The company behind software such as Photoshop and Illustrator earned $223.9 million, or 45 cents per share, compared with earnings of $229.4 million, or 45 cents per share, in the same period a year earlier. Adobe had fewer shares outstanding in the latest quarter, which increases earnings per share.
Adjusted earnings were 60 cents per share in the three months that ended June 1. Revenue grew by 10 percent to $1.12 billion.
Analysts, on average, expected earnings of 59 cents per share on revenue of $1.11 billion, according to a poll by FactSet.
Adobe sells a collection of its software products in a package called Creative Suite. The latest version, CS6, helped boost the quarter's revenue, as did a subscription-based version called Creative Cloud.
Total operating expenses rose 8 percent, to $688.4 million.
For the current quarter, the company is forecasting earnings of 38 cents to 43 cents per share and adjusted earnings of 56 cents to 61 cents per share. It expects revenue of $1.075 billion to $1.125 billion. Analysts predict earnings of 61 cents per share and revenue of $1.13 billion.
Adobe trimmed its revenue growth target for the year to 6 to 7 percent from 8 percent.
Shares of Adobe, based in San Jose, Calif., closed up 26 cents at $32.89. They fell $1.39, or 4.2 percent, to $31.50 in after-hours trading.
