Adobe Q2 profit plunges 41%

Revenue down 21% to $704.7m, expects between $665m and $715m in Q3

Design and desktop publishing software provider Adobe Systems has reported a 41% decrease in its net income to $126.1m for the second quarter of fiscal 2009, compared to $214.9m for the same period last year.

During the quarter, the company posted revenue of $704.7m, a 21% drop compared to $886.9m for the second quarter of fiscal 2008.

The company's operating income was $161.4m, compared to $260.2m in the second quarter of fiscal 2008. Diluted earnings per share fell to $0.24, compared to diluted earnings per share of $0.40 in the same quarter of fiscal 2008. Cash and cash equivalents at the end of the quarter was $1.22 billion.

Shantanu Narayen, president and CEO of Adobe, said: “We are pleased with the solid profit margin and earnings results we were able to deliver in Q2. We continue to invest in our key business initiatives which will drive long-term revenue growth once the economy improves.”

Looking ahead to the third quarter of fiscal 2009, the company expects revenue between $665m and $715m, operating margin between 20.5% to 25.5% and diluted EPS between $0.20 and $0.27.

Earlier this week, Adobe has introduced two new paid subscription services and has taken out Acrobat.com online collaboration service from public beta. It also announced the preview release of Acrobat.com Tables, a spreadsheet-like application which enables users to work with others online without having to mail spreadsheets back and forth.

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