Adobe posts 41 per cent drop in profits

Adobe is pleased with the solid profit margin and earnings results

Adobe has posted a 41 per cent drop in profits since last year, but the firm said that it was pleased with its performance.

The company reported net income of $126.1m (£77.3m), or 24 cents per share, in the quarter ending 29 May, a sharp decline from $214.9m (£131.7m) in the same period the previous year.

Revenue decreased by 21 per cent to $704.7m (£432m), but beat Wall Street estimates.

"We are pleased with the solid profit margin and earnings results we were able to deliver in quarter two," said Shantanu Narayen, Adobe president and chief executive. "We continue to invest in our key business initiatives which will drive long-term revenue growth once the economy improves."

Adobe's flagship Creative Suite, which includes Photoshop and Illustrator, has seen a fall in customer demand, but continues to occupy a large chunk of the company's investments.

Adobe announced plans at the end of last year to cut 600 jobs in an attempt to drive efficiencies.