Adobe’s Earnings Drop as Sales Fall

Adobe Systems Inc., the largest maker of software for publishing and graphic design, said second-quarter earnings dropped as sales fell for a fourth straight quarter amid a slump in advertising spending. Net income fell to $54.3 million, or 22 cents a share, from $61.3 million, or 25 cents, a year earlier. Sales in the period ended May 31 declined 7.8% to $317.4 million.

Adobe said third-quarter sales will be $300 million to $320 million, missing the average analysts’ estimate of $328.2 million. Its shares fell as low as $34.41 in after-hours trading after the release of the results and the forecast. The stock fell $1.12 to $36.19 on Nasdaq during regular trading hours.