Adobe reports strong Q3 results, shares tumble

Graphic-design software manufacturer Adobe Systems Inc has reported a year-on-year jump of 69 per cent in profit for fiscal third-quarter, owing to strong performance by each of its major businesses.

The California-based company said it pocketed a profit of $230.1 million, or 44 cents per share, during the third quarter that ended September 3, up from $136 million, or 26 cents per share, in the year ago period.

Revenue jumped 42 per cent, from $697.5million in the last year period to $990 million this year.

However, Adobe Systems, which is well-known for its Flash software, is not upbeat about its fourth quarter business. The company has predicted fourth quarter trading that would be less impressive than what analysts at the Wall Street were expecting.

Adobe Systems has been at loggers head with Apple since Apple ditched Adobe Flash in favor of the competing HTML5 standard. Sales of Photoshop, Dreamweaver and other corporate products have been soaring, but web analysts have been questioning Flash’s future.

Despite strong third-quarter results, shares in Adobe systems slipped as much as 16 per cent due to pessimistic forecasts for fourth quarter results.