Adobe revenue forecast misses, shares slip
By Abhirup Roy
(Reuters) - Photoshop maker Adobe Systems Inc's (ADBE.O: Quote) forecast disappointing revenue for this quarter and reported lower quarterly sales at its digital media business, which includes the Creative Cloud software suite.
Adobe shares fell nearly 5 percent in extended trading.
The company said it expected adjusted profit of 26-32 cents per share on revenue of $1.03 billion-$1.08 billion for the quarter ending November. (adobe.ly/1wonw8I)
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.
"I think the market has come to expect perfection from this company and today was not perfect," Edward Jones technology analyst Josh Olson told Reuters.
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.
Adobe has been switching to web-based subscription for its Creative Suite 6 from traditional box licenses to attract more predictable recurring revenue.
Online subscriptions let customers access the latest versions of a host of software for a monthly payment. Continued...