UPDATE 2-Adobe profit margin narrows, stock falls

* Q2 profit ex-items 35 cents vs Street view 35 cents

* Q2 revenue $705 mln vs Street view $695 mln

* Operating margin narrows

* Outlook in line with forecasts

* Shares fall 2.4 percent in extended trade (Recasts; adds outlook, analyst comment, stock price)

BOSTON, June 16 (Reuters) - Adobe Systems Inc (ADBE.O), the maker of Photoshop and Acrobat software, posted the narrowest profit margin in more than 3 years, disappointing investors even though its revenue fell less than analysts had feared.

The company's profit margin, excluding special items, dropped to 33.7 percent from 39.4 percent a year earlier.

Adobe's stock fell 2.4 percent in extended trading.

"People were a little disappointed. Usually when they surprise on the top line, you see that trickle down the bottom line," said Janney Montgomery Scott analyst Sasa Zorovic, who has a "neutral" recommendation on Adobe's stock.