Design software maker Adobe Systems on Thursday posted lower second-quarter net income due to higher costs related to its Macromedia acquisition, and its shares fell more than 4 percent.

Adobe also lowered its full-year 2006 profit and revenue forecasts due to weaker demand for its content-creation products such as Photoshop, as customers wait for new versions that work with new Apple computers.

"What we have seen in the last half of the quarter was a downward trend in our creative business, particularly our Creative Suite," Adobe Chief Executive Bruce Chizen said. "It is doing well, but not as well as expected."

Adobe, also known for its Acrobat document-sharing software, said second-quarter net income fell to $123.1 million, or 20 cents per share, from $149.8 million, or 29 cents per share, a year ago.

Excluding items that also included a charge related to another acquisition and the expensing of stock-based compensation, its per-share earnings were 31 cents. This was above the average analyst forecast of 30 cents per share, as compiled by Reuters Research.

Adobe also announced that its president of worldwide field operations, Stephen Elop, would leave at the end of the fiscal year. Elop, the former chief executive of Macromedia, is responsible for the company's global sales operations.

Adobe bought Macromedia last December for $3.4 billion to complement its strength in editing and distributing static content such as text, photos and graphics with Macromedia's ability to create Web graphics and advertising and its Flash technology.

Revenue rose to $635.5 million from $496.0 million, fueled by the company's combination with Macromedia, but missed the company's target.

Chizen said despite the disappointment in the company's creative products, Acrobat demand met expectations and its video business continued to benefit as more and more customersturn to the Internet to make and view video.

Looking ahead, Adobe said it was lowering its revenue target for fiscal 2006 to a range of $2.54 billion to $2.60 billion with earnings per share excluding items of $1.20 to $1.25.

Previously, the company had said it expected revenue to be about $2.7 billion and earnings per-share excluding items of $1.26 to $1.30. The Wall Street view was for full-year revenue of $2.64 billion and earnings per share before items of $1.26.

Adobe shares fell more than 4 percent to $27.70 in after-hours trading from a Nasdaq close of $28.96.

Story Copyright © 2006 Reuters Limited. All rights reserved.