Summary
Adobe Systems Inc. reported record-breaking results for its third quarter ended September 1, 2000, demonstrating robust growth and a strong position in the burgeoning digital content market. The company achieved a record $328.9 million in revenue, a 26% increase year-over-year, marking the fifth consecutive quarter of record revenue. This performance was driven by the increasing demand for web-based content, positioning Adobe to capitalize on current market trends. In addition to strong financial performance, Adobe announced a two-for-one stock split and provided an optimistic outlook, targeting at least 25% revenue growth for fiscal year 2001. The company also updated its operating model targets, anticipating a 93% gross margin and 31% operating margin for Q4 2000 and FY 2001. These results and forward-looking statements suggest continued expansion and market leadership for Adobe.
Key Highlights
- 1Adobe reported record third quarter revenue of $328.9 million, a 26% increase year-over-year.
- 2This marks the fifth consecutive quarter of record revenue, indicating sustained growth.
- 3Net income increased 37% year-over-year to $78.3 million.
- 4Diluted earnings per share (EPS) grew to $0.61, up from $0.44 in Q3 1999.
- 5The company announced a two-for-one stock split, payable on October 24, 2000.
- 6Adobe is targeting at least 25% revenue growth for fiscal year 2001.
- 7Operating profit margin (excluding certain charges) improved to 32.6% in Q3 2000.