Adobe Systems Guides Lower

It sees weaker demand in Europe and North America
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Adobe Systems (ADBE) - Get Report expects to hit the low end of previous second-quarter guidance as a result of weaker than expected spring holiday demand in Europe and North America.

Following the announcement, shares of Adobe fell $2.70, or 7%, in after-hours trading to $35.65 on Instinet.

The software maker said Tuesday it had expected revenue of $640 million to $670 million and earnings of 18 cents to 21 cents a share, and earnings before items of 30 cents to 32 cents a share.

A Thomson First Call survey of analysts had expected the company to earn 31 cents a share before items on revenue of $662.3 million.

In addition, Adobe is expecting to post an operating margin of 22% to 24% and an operating margin excluding items of 37% to 38%.

The company plans to report second-quarter results on June 15.