Musings about my first love - Technology !
Adobe scores with Q3 earnings release
Tuesday, September 18, 2007
Adobe released its Q3 earnings yesterday, amid all the eyeballs set on it it gave investors the earliest possible look as to how healthy the technology industry have been in Q3. The next-earliest major tech company to report earnings, as Utility Belt reports, is Oracle (ORCL), which releases its results on Thursday – but aside from that, no other big players is coming in until Intel (INTC) and Yahoo (YHOO) share their numbers on October 16.Bruce Chizen, CEO Adobe Bruce says the growth in Q3 was outstanding. Revenue was $851.7 million, up 41 percent from a year ago. CS3 adoption and Acrobat momentum are the main reason, but Chizen cites growth across all businesses.
With Q1 earnings of $649.4 million, Q2 at $745.6 million and Q3 at 851.7; Adobe sure is laughing its success of Creative Suite and Acrobat success. According to Bruce the company is poised to break the $3 billion revenue mark, and they're positioned to achieve double-digit growth well into the future. Looking forward to the fourth quarter, Adobe said it expects revenue of $860 million to $890 million.
And according to him a majority of corporate customers still haven't upgraded, which is surely a good sign for future revenue from CS3. The fact that the suites are doing better than the individual products shouls sound like a song to Adobe's ears. Though the ability of Microsoft to wreck havoc on its revenue sources still troubles Adobe, still its happy as it has not rested on its prior success but is still thriving ahead to deliver better features to its users. No doubt more than 98.5 percent of people with computers have Flash player installed, and more than 90 percent of people with computers upgrade their player within a year of a new release*. Even Microsoft's own MSN site has a lot of Flash on it,Bruce pointed out, demonstrating that Silverlight (Microsoft's new competitor to Flash) is not yet there. Knowing there is a competition, still being miles ahead of it really should result in some nice strategic planning.
Being an ardent performer, Adobe is doing customer research on big customers who have not yet moved. Considering this information the company is gathering, and the fact that CS2 had performed for a long long time after its release, it seems CS3 will also go on to rake in revenues for a long long time. The next quarter will be an interesting one when most of the European and American firms will set aside their budgets for new product buying and upgrades. It would be interesting to watch the division of individual packages to suite buyers.
Adobe website
Utility Belt
RTT News
And according to him a majority of corporate customers still haven't upgraded, which is surely a good sign for future revenue from CS3. The fact that the suites are doing better than the individual products shouls sound like a song to Adobe's ears. Though the ability of Microsoft to wreck havoc on its revenue sources still troubles Adobe, still its happy as it has not rested on its prior success but is still thriving ahead to deliver better features to its users. No doubt more than 98.5 percent of people with computers have Flash player installed, and more than 90 percent of people with computers upgrade their player within a year of a new release*. Even Microsoft's own MSN site has a lot of Flash on it,Bruce pointed out, demonstrating that Silverlight (Microsoft's new competitor to Flash) is not yet there. Knowing there is a competition, still being miles ahead of it really should result in some nice strategic planning.
Being an ardent performer, Adobe is doing customer research on big customers who have not yet moved. Considering this information the company is gathering, and the fact that CS2 had performed for a long long time after its release, it seems CS3 will also go on to rake in revenues for a long long time. The next quarter will be an interesting one when most of the European and American firms will set aside their budgets for new product buying and upgrades. It would be interesting to watch the division of individual packages to suite buyers.
A list of few happenings at Adobe -Sources:
March - launched its Creative Suite 3 product line
May - announced that it has agreed to buy privately held media software company - Scene7
June - unveiled its Visual Communicator 3 software, designed to create video broadcasts
July - introduced its FrameMaker 8 software
Sep - announced the release of its Font Folio 11 software
and announced a tie up with BEA Systems Inc. (BEAS)
Adobe website
Utility Belt
RTT News
posted by Jas @ 2:53 AM,
