Summary
Adobe Systems Incorporated (ADBE) reported its financial results for the quarter ended May 31, 2012. The company demonstrated revenue growth driven by its Digital Media and Digital Marketing segments, with the Digital Media segment benefiting from the launch of Creative Suite 6 (CS6) and the Digital Marketing segment showing continued adoption of its Digital Marketing Suite, bolstered by the recent acquisition of Efficient Frontier. While overall revenue increased year-over-year, the company's net income saw a slight decrease compared to the prior year's quarter, impacted by various factors including a higher effective tax rate. Adobe continues to strategically invest in its growth areas and manage its capital effectively, including ongoing stock repurchase programs and a newly established credit facility to support general corporate purposes.
Financial Highlights
54 data points| Revenue | $1.12B |
| Cost of Revenue | $119.62M |
| Gross Profit | $993.53M |
| Operating Expenses | $682.65M |
| Operating Income | $278.30M |
| Interest Expense | $17.25M |
| Net Income | $223.88M |
| EPS (Basic) | $0.45 |
| EPS (Diluted) | $0.45 |
| Shares Outstanding (Basic) | 494.05M |
| Shares Outstanding (Diluted) | 499.76M |
Key Highlights
- 1Total revenue for the three months ended June 1, 2012, increased by 10% to $1.124 billion compared to $1.023 billion in the prior year's quarter.
- 2Digital Media revenue grew by 9% year-over-year to $818.5 million, largely driven by the launch of Adobe Creative Suite 6 (CS6).
- 3Digital Marketing revenue saw a significant increase of 17% year-over-year to $250.9 million, fueled by the adoption of the Digital Marketing Suite and contributions from the Efficient Frontier acquisition.
- 4Net income for the quarter decreased to $223.9 million from $229.4 million in the same period last year, while diluted EPS remained stable at $0.45.
- 5The company's effective tax rate increased significantly to 24.0% from 11.5% year-over-year, impacting net income.
- 6Goodwill increased to $4.123 billion from $3.849 billion, primarily due to the acquisition of Efficient Frontier and foreign currency translation adjustments.
- 7Adobe ended the quarter with a strong liquidity position, with cash and cash equivalents of $951.2 million and short-term investments of $2.047 billion.