said Thursday that second-quarter net income and revenue shrunk from a year ago, but the software maker still modestly beat Wall Street estimates.
Adobe also slightly lowered revenue guidance for the full year.
San Jose-based Adobe reported $54.3 million in net income, or 22 cents a share, in the second quarter, which ended May 31. That compares to net income of $61.3 million, or 25 cents a share in the same period a year ago and was a 9% sequential increase over the first quarter's $49.8 million in net income. Excluding charges, Adobe reported pro forma earnings of 27 cents a share on $317.4 million in revenue, compared to pro forma earnings of 34 cents a share on $344.1 million in revenue in the year-ago period.
While other software companies have suggested second-quarter revenue would come in flat sequentially, Adobe reported an 18.5% rise in revenue from the first quarter's $267.9 million.
The consensus on Wall Street was for the company to post pro forma earnings of 25 cents a share on $316.3 million in revenue in the second quarter, according to Thomson Financial/First Call.
In March, Adobe forecast it would report revenue of $305 million to $325 million and pro forma earnings of 24 cents to 27 cents a share for the second quarter. At the end of April, Adobe indicated that strong Photoshop software upgrades put the company on track to meeting that guidance. Adobe launched the English version of Photoshop 7 in mid-April and also planned major non-English versions to ship in the second quarter.
For the third quarter, Adobe said it expects to report pro forma earnings ranging from 24 cents to 27 cents a share on revenue between $300 million and $320 million. And for the fourth quarter, the company set preliminary financial targets of $315 million to $345 million in revenue and 26 cents to 29 cents a share in pro forma earnings.
That puts full-year guidance in a range of 99 cents a share to $1.05 a share for pro forma earnings on $1.2 billion to $1.3 billion in revenue. Previously, in December, the company said it expected to bring in earnings of $1.03 cents a share on $1.3 billion in revenue.
Wall Street pegged third-quarter earnings at 26 cents a share and revenue at $328.2 million, and fourth-quarter earnings at 26 cents a share and revenue at $335.8 million, according to Thomson Financial/First Call. That brings the full-year consensus estimate to 99 cents a share in pro forma earnings on $1.2 billion in revenue.
Shares of Adobe fell $1.12, or 3%, to close at $36.19. After the company's earnings announcement, shares fell to $34.35 in after-hours trading.