Adobe posts pre-tax profit drop despite rise in revenue

Adobe published mixed third-quarter results last week, recording an increase in revenue but a fall in pre-tax profit, ahead of this week's launch of Creative Suite 4 (CS4).

The California-based software developer achieved revenues of $887.3m (£481.5m) – an increase of 4.2% on the $851.7m it posted for the same period last year.

However, profits were hit by a significant increase in cost and operating expenses, which, coupled with a fall in interest, led to a 17.5% dip in pre-tax profit down to $228.5m.

Adobe president and chief executive Shantanu Narayen chose to focus on the positives, specifically the company's revenue, which beat its target range of $855m to $885m.

He said: "Our strong performance in Q3 was driven by record revenue for our Acrobat and LiveCycle products, as well as the overall diversity of our business.

"We continue to execute exceptionally well against our strategy, and we look forward to the launch of our flagship Creative Suite 4 product family next week."

Adobe has announced a fourth-quarter revenue target range of $925m to $955m.