NEW YORK (TheStreet) –- Adobe Systems (ADBE) plunged Wednesday after lowering its second-quarter forecast and reporting weaker-than-expected cloud software suite subscription sales in the quarter that just ended. Oracle (ORCL) rose after beating Wall Street's third-quarter earnings estimates and issuing a dividend increase. Vitesse Semiconductor (VTSS) soared on merger announcement.
Adobe Systems fell 3.5% to close at $76.89 on a day when the broader markets advanced.
The digital print and publishing software maker reported its second-quarter revenue is now expected to reach between $1.13 billion to $1.18 billion compared with analysts estimates of $1.18 billion. Earnings are anticipated to fall within 41 cents to 47 cents, coming up short of the 48 cents Wall Street expected.
As for the quarter that just closed, Adobe, which reported its results after the markets closed Tuesday, beat analysts' earnings and revenue estimates. However, it generated lower-than-expected subscriptions for its Creative Cloud software suite. The company reported 517,000 subscriptions, compared to the 573,000 that Wall Street anticipated.
Oracle rose 2.9% to end the session at $44.13.
The enterprise software maker got a lift after it beat analysts' earnings estimates and increased its dividend. For the third quarter, the database maker reported earnings of 65 cents a share, whereas Wall Street expected 64 cents. Revenue, however, came in short of estimates, reaching $9.3 billion in the quarter compared with analysts' estimates of $9.5 billion.
During the current quarter, Oracle anticipates its total revenue will climb between 1% to 6% over the previous year. Cloud revenue is expected to soar 27% to 33% in the current quarter compared with last year, and when combined with Oracle's software revenue it is expected to post an overall increase of 2% to 6%.
Oracle also raised its to 15 cents from 12 cents a share. The dividend is scheduled to payout on April 28 to shareholders of record as of April 7, according to a report in Zacks.
Vitesse Semiconductor surged 37.3% to close at $5.34.
The high-performance integrated circuit chip company soared after Microsemi (MSCC) announced plans to acquire the company for $389 million in cash. The acquisition is designed to expand Microsemi's market in communication chips.
"This acquisition is further evidence of Microsemi's continuing commitment to grow as a communications semiconductor company. Vitesse
s highly complementary technology suite will expand our product offering and accelerate growth with differentiated technology in emerging markets, while benefiting from the increased scale," said Microsemi CEO James Peterson, in a statement.