Adobe Reports a Robust Second Quarter and Plans Share Buyback
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Adobe Systems (ADBE
) posted double-digit earnings gains in the second quarter, fueled by strong growth from its launch of Creative Suite 5, the company said Tuesday. The graphics-software maker generated $943 million in revenue for the quarter, a 34% increase over the same time last year. That performance beat Adobe's earlier revenue guidance to Wall Street of $875 million to $925 million. The company's net income climbed to $148.6 million -- up 17.8% from a year ago.
The company expects even greater revenue in the third quarter, to the tune of $950 million to $1 billion. That, in part, explains its decision to modify its share-repurchase program -- Adobe announced it would buy back up to $1.6 billion in common stock through fiscal 2012.
Despite its strong earnings performance and share-buyback program, Adobe's shares were down 2.33% to $32 in pre-market trading Wednesday.