Adobe Q2 Net Drops 66%

Adobe Systems shares are down slightly following the release of the company's Q2 2013 financials. For the quarter, revenue was $1.01 billion, down from the $1.12 billion in the same period the previous year. Net profit suffered a steeper drop, declining to $77 million ($0.15 per diluted share) from Q2 2012's figure of $224 million ($0.45). Much of that drop is attributable to sharp growth in subscription services, which results in chunks of revenue being deferred to future quarters.

On an adjusted basis, factoring out items such as restructuring charges and stock-based compensation, net profit was $183 million ($0.36 per diluted share) compared to the year-ago quarter's nearly $300 million ($0.60).

In spite of the declines, the numbers are within or above Adobe's guidance of $975 million-$1.03 billion in revenue and EPS of $0.29-$0.35 for the quarter. Analysts had been projecting $1.01 billion and $0.34, respectively.

Adobe shares closed slightly lower, by $0.03 to $43.36, following the release of the results.