(Reuters) - Adobe Systems Inc lowered its profit forecast for 2016 below analyst estimates partly due to a strong dollar, sending its shares down as much as 13 percent in extended trading.
The Photoshop maker said it expects full-year revenue of about $5.7 billion and an adjusted profit of $2.70 per share.
Analysts on average were expecting revenue of $5.93 billion and earnings of $3.19 per share, according to Thomson Reuters I/B/E/S. In 2013, Adobe forecast an adjusted profit of $3 per share for 2016.
The company is expecting a $200 million hit on revenue as a result of the stronger dollar, and a $100 million hit as Adobe’s “last material businesses are transitioning to ratable revenue.”
Adobe has been switching to web-based subscriptions from traditional licensed software to help attract more predictable recurring revenue.
Acrobat, Elements and Lightroom are among the last of the products to transition to web-based subscription.
“It looks like the ramp of the business is going to be moving more slowly going forward,” FBR Capital Markets & Co analyst Samad Samana said.
Creative Cloud, which includes Photoshop, Illustrator and Indexing, is the biggest of the company’s cloud businesses. The other two are Marketing Cloud and Document Cloud.
The company, which is generally conservative with its forecast, expects 20 percent growth in revenue in its Digital Media business, which includes Creative Cloud, and the Marketing Cloud segment in 2016.
Adobe forecast fourth-quarter revenue and profit below estimates in September, despite adding more subscribers for its Creative Cloud software suite than analysts had expected.
The company’s shares were down at $82.00 after closing at $85.15 on the Nasdaq on Tuesday, recouping early losses.
Additional reporting by Sai Sachin R in Bengaluru; Editing by Maju Samuel and Don Sebastian