NEW YORK (

TheStreet

) --

Adobe

(ADBE) - Get Report

trailed Wall Street's revenue estimates in its third quarter as the company ramps up its subscription business.

The San Jose, Calif.-based firm reported revenue of $1.081 billion, below analysts' expectations of $1.10 billion and at the low end of its own guidance of $1.075 billion to $1.125 billion. Adobe took a $9 million hit from currency losses.

Excluding items, Adobe earned 58 cents a share, in line with the forecast from analysts surveyed by

Thomson Reuters

.

Adobe, however, said that as customers migrate from its older Creative Suite perpetual licensing model to new Creative Cloud subscriptions, revenue is recognized over a longer period of time.

"We're on a path to drive millions of subscribers to our Creative Cloud offering, as well as build a billion dollar SaaS

software as a service business in Digital Marketing," said Mark Garrett, Adobe CFO's, in a statement. "This will drive higher long-term growth and create a large recurring revenue stream."

The

Apple

(AAPL) - Get Report

and

Microsoft

(MSFT) - Get Report

rival expects fourth-quarter revenue between $1.075 billion and $1.125 billion, compared to analysts' forecast of $1.21 billion. Excluding items, Adobe's looking for fourth-quarter earnings between 53 cents and 58 cents a share. Analysts surveyed by

Thomson Reuters

are predicting earnings of 67 cents a share.

Adobe shares slipped 0.7% to $32.90 in extended trading on Wednesday.

--Written by James Rogers in New York.

Follow @jamesjrogers

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