SAN JOSE, Calif. (AP) — Adobe Systems Inc. said Monday that its fiscal first-quarter net income fell 21 percent, weighed by higher operating costs even as revenue climbed.
The midpoint of its earnings outlook for the current quarter was slightly below Wall Street's expectations and shares fell after hours.
The company known for Photoshop and other design software earned $185.2 million, or 37 cents per share, for the three months that ended on March 2. That's down from $234.6 million, or 46 cents per share, in the same period a year earlier. Excluding stock compensation costs and other special charges, Adobe earned 57 cents per share.
Revenue climbed 2 percent to $1.05 billion from $1.03 billion.
Analysts, on average, were expecting earnings of 57 cents per share on revenue of $1.05 billion, according to a poll by FactSet. The results were in line with the forecast that Adobe gave in December.
Adobe booked $648 million in operating costs in the latest quarter, up 5 percent from a year earlier due to higher sales, marketing and other expenses.
San Jose, Calif.-based Adobe is forecasting earnings of 37 cents to 43 cents per share for the current quarter. On an adjusted basis, it expects earnings of 57 cents to 61 cents per share, compared with analysts' expectations of 60 cents.
The company forecast revenue of $1.09 billion to $1.14 billion. That's roughly in line with the $1.1 billion that analysts are expecting.
Adobe's stock fell $1.76, or 5.1 percent, to $32.75 in after-hours trading. The stock had closed up 69 cents, or 2 percent, to $34.51.