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Adobe Systems Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: June 27, 2012 05:18PM

Adobe Systems Inc. (ADBE) filed Quarterly Report for the period ended 2012-06-01. Adobe Systems Incorporated has a market cap of $15.66 billion; its shares were traded at around $31.41 with a P/E ratio of 17.2 and P/S ratio of 3.7.



Highlight of Business Operations:

Our Digital Media segment revenue increased 9% and 2% year-over-year during the three and six months ended June 1, 2012, respectively. The increase was primarily due to the Adobe Creative Suite 6 (“CS6”) launch in the second quarter of fiscal 2012.

Revenue in our Digital Marketing segment increased 17% and 19% year-over-year during the three and six months ended June 1, 2012, respectively. Driving this success was continued adoption of our Digital Marketing Suite, which grew 35% year-over-year and includes our CQ Web Experience Management (“WEM”) offerings and revenue generated from products associated with our recent acquisition of Efficient Frontier. Increases in Digital Marketing Suite revenue were offset in part by a decease in revenue associated with our Adobe LiveCycle product offerings.

Revenue from Digital Media increased $64.4 million and $33.5 million during the three and six months ended June 1, 2012, respectively, as compared to the three and six months ended June 3, 2011. In May 2012, we launched CS6 which is at the center of Creative Cloud, our new subscription-based offering for creating and publishing content and applications that was also released in May 2012. The launch of CS6 included major updates to all of our core CS point products as well as four suite versions. With regard to our CS point products, the revenue increase during the three and six months ended June 1, 2012 was driven by growth associated with the release of new Photoshop point products for which the previous release occurred in fiscal 2010. Strong demand related to the release of Adobe Lightroom 4 also contributed to the growth in revenue during the three and six months ended June 1, 2012 as compared to the three and six months ended June 3, 2011. Suite revenue from our creative product offerings increased slightly during the three months ended June 1, 2012, though declined slightly during the six month period ended June 1, 2012 compared with the corresponding periods a year ago largely due to a shift in product mix to the lower priced suite product offerings. Within Digital Media, Document Services revenue, which includes our Acrobat product family, also increased during the three and six months ended June 1, 2012 as compared to the three and six months ended June 3, 2011 primarily due to large enterprise transactions during the second quarter of fiscal 2012 and increased Document Exchange Services revenue including EchoSign eSignatures service. There was an increase in the number of units licensed for our creative offerings during both the three and six months ended June 1, 2012 as compared to the same periods in the prior year. Creative point product and suite unit average selling prices declined during the three months ended June 1, 2012 though remained relatively stable during the six months ended June 1, 2012. Within Document Services, both the number of units licensed and the unit average selling prices for our Acrobat offerings, excluding large enterprise license agreement (“ELA”) deals, have remained relatively stable for the three and six months ended June 1, 2012, as compared to the three and six months ended June 3, 2011.

Revenue from Digital Marketing increased $35.8 million and $82.8 million during the three and six months ended June 1, 2012, respectively, as compared to the three and six months ended June 3, 2011. The increase during the three and six months ended June 1, 2012 was primarily due to continued adoption of our Digital Marketing Suite including revenue generated from products associated with our recent acquisition of Efficient Frontier as well as from our WEM solution. Also contributing to the growth in revenue was our Adobe Connect hosted offering. As expected, increases were offset in part by a decrease in revenue associated with Adobe LiveCycle product offerings as we continue to shift our focus to our Digital Marketing Suite including our WEM solution.

Revenue from Print and Publishing increased $1.1 million and $2.4 million during the three and six months ended June 1, 2012, respectively, as compared to the three and six months ended June 3, 2011. The increase during the three and six months ended June 1, 2012 was primarily due to fees received for consulting services and royalties related to PostScript products and an increase in revenue associated with Adobe Captivate, our e-learning authoring software.

Read the The complete Report



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