Brake on growth at Adobe

Earnings Adobe Systems (Adobe) recently released its earnings for the second quarter of 2006 (March 4 through June 2, 2006). According to the report, the company generated revenue of $635.5 million. However, the 2006 target range had been set at $640 million to $670 million. Adobe also reported a decline in operating income and operating margin. The latter fell from 36.7 percent (same period last year) to 23.3 percent. For the third quarter of 2006, the company expects revenue of between $580 million and $610 million and a profit margin of between 16 and 19 percent. According to the press release, the figures take into account the recently completed acquisition of Macromedia and are compared with results achieved in recent quarters prior to the completion of the acquisition.