ADOBE INC. Annual Report, Year Ended Dec 3, 1999

Adobe Systems Incorporated reported strong revenue growth for the fiscal year ended December 3, 1999, with total revenue reaching $1.015 billion, a 13% increase from the previous year. This growth was primarily driven by robust performance in the Print Publishing and ePaper Solutions segments, which saw increases of 30% and over 100% respectively. The Web Publishing segment also contributed positively with an 11% revenue increase. The company's net income saw a significant jump to $237.8 million, a 126% increase from fiscal year 1998, reflecting improved operational efficiency and strong sales. Adobe continues to invest heavily in product development, with R&D expenses increasing by 5% to $197.5 million, underscoring its commitment to innovation in a rapidly evolving software market. The company also announced a two-for-one stock split, indicating confidence in its future performance. Despite the positive financial results, Adobe faces ongoing challenges, particularly in its OEM PostScript and Other segment, which experienced a 34% decline due to weakness in the monochrome laser printer market and the loss of key customer business. The company is also navigating a competitive landscape with rapid technological changes. Management is focused on strategic initiatives including investing in eBusiness, streamlining operations through restructuring programs, and managing its venture capital portfolio, which showed significant unrealized gains. Overall, Adobe is demonstrating strong growth and profitability, driven by its core software products, while actively managing its business for future expansion.