Adobe revenue drops 21 per cent

Adobe revenue down 21 per cent

Software vendor Adobe reported third quarter financial results showing revenue of $697.5m (£423m), down 21 per cent from last year's figure of $887.3m (£538m), though down just one per cent from the last quarter's $704.7m (£427m).

Net income dropped 29 per cent to $136m (£82m) from last year's figure of $191.6m (£116m), but was up eight per cent from last quarter's $126.1m (£76m).

Despite this loss in revenue, the software media giant still found $1.8bn (£1.1bn) to fund its acquisition of business analytics firm Omniture.

Commenting on the takeover in a statement, Adobe president and chief executive Shantanu Narayen said: "This is a game changer for both Adobe and our customers, since the combination will enable advertisers, media firms and e-tailers to realise the full value of their digital assets."

"[The acquisition] will increase the value we deliver to customers. For designers, developers and online marketers, an integrated workflow - with optimisation capabilities embedded in the creation tools - will streamline application, content creation and delivery."

The definitive agreement between Adobe and Omniture expects a closing date in the fourth quarter of its fiscal year, subject to normal regulatory conditions being met.