Early Access

10-QPeriod: Q3 FY2011

ADOBE INC. Quarterly Report for Q3 Ended Sep 2, 2011

Filed October 7, 2011For Securities:ADBE

Summary

Adobe Systems Incorporated's (ADBE) third-quarter 2011 report (ending September 2, 2011) shows continued revenue growth, driven by strong performance in its Enterprise and Omniture segments, and the impact of recent acquisitions like Day Software. Total revenue increased by 2% year-over-year for the quarter and 10% year-over-year for the first nine months of the fiscal year. While product revenue saw a slight decline sequentially, subscription and services revenue continued to grow, indicating a shift towards recurring revenue models. The company maintained a strong financial position with significant cash and investments. Despite increased operating expenses, particularly in sales and marketing and R&D, Adobe managed to grow its net income compared to the previous year, demonstrating effective cost management and operational efficiency. The company also continued its aggressive share repurchase program, signaling confidence in its financial health and commitment to returning value to shareholders.

Key Highlights

  • 1Total revenue for the third quarter of fiscal 2011 increased by 2% year-over-year to $1.013 billion, while nine-month revenue grew by 10% to $3.064 billion.
  • 2The Enterprise segment showed robust growth, up 22% year-over-year for the nine-month period, boosted by the acquisition of Day Software.
  • 3The Omniture segment continued its strong momentum, with an 18% and 20% year-over-year revenue increase for the three and nine months respectively.
  • 4Net income for the nine months ended September 2, 2011, was $659.1 million, an increase from $505.8 million in the prior year period.
  • 5Adobe maintained a healthy balance sheet with total assets of $8.49 billion and cash and cash equivalents of $769.2 million as of September 2, 2011.
  • 6The company repurchased approximately 19.8 million shares during the nine months ended September 2, 2011, as part of its ongoing stock repurchase program.
  • 7Operating expenses increased, primarily due to higher R&D and Sales & Marketing investments, supporting product development and market expansion.

Frequently Asked Questions