I remain upbeat about Adobe Systems (ADBE), a diversified software company. Recently, the company announced the acquisition of TubeMogul, a video advertising platform, for $540 mn. TubeMogul is a leading provider of video demand-side platform (DSP) that enables advertisers to plan, buy and measure video ads across mobile, desktops, television and streaming devices. The deal is expected to further strengthen Adobe’s foothold in the digital marketing space. It will enable advertisers to capitalize on online video campaigns, thereby expanding the company’s offerings. Moreover, with this acquisition, Adobe can further distinguish its Marketing Cloud offering from the likes of Salesforce, IBM, Oracle.Adobe’s financials for its fiscal 2016 third quarter ended September 2 were strong, with both top and bottom line surpassing consensus estimates. Revenues increased 20.2% y-o-y to $1.46 bn, with Digital Media Solutions remaining the major driver. Adjusted operating income rose 36.7%, and adjusted earnings per share jumped 38.9% to 75 cents. For the fiscal fourth quarter, Adobe expects non-GAAP EPS in the range of 83-89 cents on revenues of $1.55-1.60 bn. During the reported quarter, the company also repurchased approximately 3.5 mn shares returning $344 mn to stockholders.I believe that Adobe’s solid market position, compelling product lines (including Creative Suite cloud initiative and digital media products), continued innovation and strong balance sheet will allow the company to continue to deliver robust financials going forward. After a notable decline, Adobe’s shares have found suppot near the upward ternd line. I expect the stock to continue to rebound, with medium-term target at $115. $ADBE, Adobe Inc. / 1440