Much of the investing public gave a warm reception to Adobe Systems' (NASDAQ:ADBE) bid to acquire Macromedia (NASDAQ:MACR). But at least one shareholder is unhappy with the plan, as Adobe reported in its latest quarterly results. The shareholder, according to the press release, has filed a suit against Adobe and its board of directors, alleging "breach of fiduciary duty" after Macromedia restated its financial results for its 1999-2004 fiscal years.

The company contends that the lawsuit lacks merit. What doesn't lack merit, though, is Adobe's second-quarter figures.

Growth for this leading software developer is showing no sign of slowing down. Product revenues for the quarter were higher by 20.6% to reach $485.6 million. Services and support chipped in an additional $10.4 million, a 38.7% increase compared with the same period a year ago.

With total revenues up 21%, Adobe's net income also did little to disappoint, growing 37% to hit $149.8 million. We can thank improvements to operating margins as a part of the reason for the healthy earnings.

Operating profit margins of 34.6% a year ago were nothing to sniff at. But Adobe was able to move that figure more than two percentage points higher, to 36.7% -- contributing to higher profit margins and increases in profitability. Looking ahead to the third quarter, the company expects to see profit levels in a range of 34% to 36%, which should sustain recent levels of profitability.

Including the $0.29 per share it earned in the latest period, Adobe has now earned $0.59 per share through two quarters. It looks well on its way to meet or exceed analyst expectations of $1.07 per share by year's end.

But growth is not the only thing to admire about this enterprise. Adobe keeps a squeaky-clean balance sheet, the latest of which shows that the company now has $253.3 million in cash and cash equivalents, with another $1.4 billion in marketable securities. Lots of cash and no debt will bring a smile to any shareholder.

Adobe's bread and butter is photo editing, and the latest snapshot of its performance suggests that this enterprise remains well in focus.

Fool contributor Jeremy MacNealy does not own shares in any of the companies mentioned.