SAN FRANCISCO - Adobe Systems (ADBE) - Get Adobe Inc. Report surpassed the Street's third-quarter earnings expectations Tuesday and guided higher.

The San Jose, Calif. software company said revenue rose 4% to $887.3 million, from $851.7 million in the same quarter of last year. Analysts were expecting a top line of $876.7 million, according to Thomson Reuters.

The developer of Web design and publishing software reported net profit fell 6.6% year over year to $191.6 million, or 35 cents a share, from $205.2 million, or 34 cents a share, in the year-ago period, when the number of shares outstanding was greater by 10%.

Excluding special charges, EPS was 50 cents. Analysts were looking for 46 cents a share, less items.

Deferred revenue totaled $232.4 million, up 21% year over year. Operating margin was 24.7%, vs. 29.9% one year ago. Excluding charges, operating margin was 39.7%, compared to 40% for the same quarter of last year.

For the fourth quarter, Adobe projected revenue ranging from $925 million to $955 million and EPS, less items, of 51 cents to 53 cents. Analysts were expecting $939.4 million and EPS, less items, of 51 cents.

Adobe's dominant Flash software for playing Web video is coming under increasing pressure from

Microsoft's

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