Updated from Tuesday, Sept. 15
SAN JOSE, Calif. --
, struggling to drum up business, has decided to acquire one.
With sales down 22% from a year ago and similarly bleak numbers on the horizon, the Flash graphic application developer has grabbed
for $1.8 billion in cash in an effort to expand beyond Web software to site management and traffic analytics.
Adobe posted adjusted earnings, excluding one-time items, of 35 cents a share, even with the second quarter but down from the 50 cents in the year-ago period. Analysts were looking for a pro forma profit of 34 cents a share, according to Yahoo Finance.
Sales for the fiscal third quarter ended Aug. 28 were $687 million, down from the $705 million booked in the second quarter and well below the $887 million level a year ago. Analysts expected sales of $686 million.
Picking up the Pieces at Adobe: 1 Minute Trade
Looking ahead, the company says it expects fiscal fourth-quarter sales in the rage of $690 million to $740 million. The mid-point of $715 is slightly below the $719 million top line analysts had expected.
On the Omniture deal, Adobe says it will make a tender offer to acquire shares of the Web site monitoring shop for $21.50 in cash.
Omniture shares closed up 2% before the news was announced, and added 25% in after-hours trading, to $21.67. Adobe fell more than 4% after the close.
Written by Scott Moritz in New York.