Summary
Adobe Systems Inc. (ADBE) reported strong financial performance for the quarter ending June 4, 2010, driven by robust sales of its flagship Adobe Creative Suite 5 (CS5) and a stable economic environment. Total revenue saw a significant increase of 34% year-over-year for the quarter, reaching $943 million, boosted by the successful launch of CS5 and continued demand for its Acrobat product family. The acquisition of Omniture in the previous fiscal year is also contributing positively, creating a new reportable segment and enhancing revenue streams, particularly in subscription-based services. The company maintained healthy gross profit margins and managed operating expenses effectively, leading to strong operating income. Adobe's balance sheet remains solid, with a substantial increase in cash and cash equivalents and short-term investments, providing ample liquidity. The company also demonstrated a strong commitment to returning value to shareholders through share repurchases and a robust stock-based compensation program, reflecting confidence in future growth.
Financial Highlights
54 data points| Revenue | $943.03M |
| Cost of Revenue | $107.83M |
| Gross Profit | $835.20M |
| Operating Expenses | $607.92M |
| Operating Income | $227.28M |
| Interest Expense | $16.08M |
| Net Income | $148.61M |
| EPS (Basic) | $0.28 |
| EPS (Diluted) | $0.28 |
| Shares Outstanding (Basic) | 526.15M |
| Shares Outstanding (Diluted) | 533.26M |
Key Highlights
- 1Total revenue increased by 34% year-over-year to $943.0 million for the three months ended June 4, 2010.
- 2Adobe Creative Suite 5 (CS5) launch drove strong revenue performance in the Creative Solutions segment, with CS5 revenue up 15% year-to-date compared to CS4.
- 3Knowledge Worker segment revenue grew 13% year-over-year, driven by solid demand for Acrobat products.
- 4The acquisition of Omniture is contributing positively, with its segment generating $83.5 million in revenue for the quarter.
- 5Cash and cash equivalents increased to $1.14 billion, and total cash, cash equivalents, and short-term investments reached $2.64 billion, indicating strong liquidity.
- 6Diluted net income per share was $0.28 for the quarter, an increase from $0.24 in the prior year period.
- 7The company successfully managed its debt, issuing $1.5 billion in senior notes and repaying its $1.0 billion credit facility.