Adobe profit beats forecast, shares rise

By Jim Finkle

BOSTON (Reuters) - U.S. based-Adobe Systems Inc (ADBE.O: Quote, Profile, Research, Stock Buzz) reported quarterly results that beat Wall Street expectations, citing strong sales of its software for document creation as well as Web and graphics design.

The U.S. company's shares rose 6 percent in what several analysts said was a relief rally. Adobe also maintained its full-year financial outlook.

"People thought this was going to be a bad quarter. People thought they were going to lower their numbers. They didn't," said Gene Munster, an analyst with Piper Jaffray.

He and other analysts said that Adobe might not be able to keep beating Wall Street expectations if the economy continues to weaken.

"The deteriorating macro environment could likely dampen demand in future quarters," Goldman Sachs analyst Sasa Zorovic said in a note to clients.

The maker of Photoshop, Illustrator and Flash software said on Tuesday net income rose to $219.4 million, or 39 cents per basic share, in its fiscal first quarter ended February 29, from $143.9 million, or 24 cents, a year earlier.

Revenue rose 37 percent from a year earlier to $890.4 million. In the year-earlier period, analysts had said, some customers held off on buying some of Adobe's products ahead of the launch of Creative Suite 3 in the following quarter.

On a net diluted basis the company earned 38 cents per share versus 24 cents per share a year earlier.