[June 18, 2013] Adobe 2Q profit shrinks but subscriptions grow Tweet (Associated Press Via Acquire Media NewsEdge) NEW YORK (AP) — Software maker Adobe Systems Inc. said Tuesday its Creative Cloud subscriptions kept climbing during the fiscal second quarter, and its shares advanced in aftermarket trading despite a steep drop in profit. The San Jose, Calif., company makes popular software like Adobe Reader and Photoshop. It has been shifting its business to a subscription format and said revenue from subscriptions climbed 60 percent in March through May from a year ago, to $254.5 million. Adobe shares gained $2, or 4.6 percent, to $45.36 in aftermarket trading. The stock fell 3 cents to $43.36 Tuesday. Net income shrank by two-thirds, to $76.6 million, or 15 cents per share, from $233.9 million, or 45 cents per share. The company said it earned 36 cents per share if one-time costs are excluded. Revenue fell 10 percent, to $1.01 billion from $1.12 billion. Analysts expected Adobe to report adjusted earnings of 33 cents per share on $1.01 billion in revenue, according to FactSet. Adobe had 700,000 paid subscriptions at the end of the period, boosting subscription revenue. But product revenue fell 26 percent to $644.9 million. Service and support revenue grew 18 percent to $111.1 million Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. [ Back To TMCnet.com's Homepage ]