Adobe Systems Inc. (NASDAQ: ADBE) reported Tuesday that its fiscal first-quarter earnings declined on higher expenses, but sales climbed as demand for its design and publishing software improved, according to Associated Press.
The results surpassed Wall Street's expectations.
Adobe also gave a strong forecast for the current quarter and announced that it would launch a key software upgrade by early June.
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Adobe earned $127.2 million, or 24 cents per share, in the three months that ended March 5, which is down 19 percent from a year earlier.
Excluding items such as stock compensation costs, Adobe earned 40 cents per share in the latest quarter, above the 37 cents that analysts polled by Thomson Reuters were expecting.
Revenue rose 9 percent to $858.7 million, which also surpassed analysts' expectations.
The majority of Adobe's revenue comes from Creative Suite, its flagship software package which targets professional designers and developers. The company launched the most recent version, Creative Suite 4, in the fall of 2008.
For the current quarter, Adobe is forecasting a profit of 23 cents to 30 cents per share. Excluding items, the company expects to earn 39 cents to 44 cents per share, compared with analysts' expectations of 41 cents per share.
The company forecast revenue of $875 million, which is above Wall Street's predictions of $858.6 million, compared to $925 million in 2009.
In extended trading Tuesday after the results were announced, Adobe shares gained $1.98, or 5.6 percent, to $37.20. Earlier, it closed up 27 cents at $35.22.
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