Archive notice: This article was originally published on December 18, 2007. Links and embedded videos are preserved as part of the historical record.
Adobe Systems has published its results for the fourth quarter (September 1, 2007 to November 30, 2007) and fiscal year 2007. In the fourth quarter of 2007, Adobe recorded record revenue of 911.2 million US dollars, compared with 682.2 million US dollars in the fourth quarter of 2006 and 851.7 million US dollars in the third quarter of fiscal year 2007. This corresponds to growth of 34 percent compared with the same period of the previous year. The target for the fourth quarter of 2007 was a range of 860 million to 890 million US dollars.
“The continuing strong demand for the Creative Suite 3 product family, record revenue for Acrobat and the great momentum in the enterprise business were responsible for our very good result in the 4th quarter”, says Fritz Fleischmann, managing director of Adobe Systems GmbH and Senior Managing Director Central and Eastern Europe. “At the beginning of fiscal year 2008, we see ourselves as very well positioned to achieve double-digit annual revenue growth for the sixth consecutive time.”
Record Revenue in Fiscal Year 2007
For fiscal year 2007, Adobe achieved record revenue of 3.158 billion US dollars; in the previous year it was 2.575 billion US dollars. This corresponds to growth of 23 percent. Annual profit for 2007 under GAAP is 723.8 million US dollars; in the previous year this figure was 505.8 million US dollars. Non-GAAP profit for 2007 is 965.8 million US dollars; in fiscal year 2006, 757.3 million US dollars was achieved. Earnings per share (under GAAP) for fiscal year 2007 amount to 1.21 US dollars (2006: 0.83 US dollars); non-GAAP earnings per share amount to 1.61 US dollars (2006: 1.24 US dollars). More detailed information on GAAP and non-GAAP can be found at the end of this press release.
Results for the Fourth Quarter of 2007
Earnings per share accounted for under GAAP for the fourth quarter of 2007 were 0.38 US dollars, based on 587.9 million shares outstanding. In the same period of the previous year, GAAP earnings per share of 0.30 US dollars were achieved with 602.2 million shares; in the third quarter of fiscal year 2007, they were 0.34 US dollars (597.3 million shares). The target for GAAP earnings per share for the fourth quarter of 2007 was 0.35 to 0.37 US dollars. In the fourth quarter of 2007, operating income under GAAP amounted to 275.8 million US dollars, compared with 163.4 million US dollars in the same period of the previous year and 255 million US dollars in the third quarter of 2007. This GAAP result for the fourth quarter of 2007 corresponds to 30.3 percent of revenue; in the corresponding period of the previous year, this figure was 23.9 percent, and in the third quarter of 2007, 29.9 percent was achieved.
GAAP profit for the fourth quarter of 2007 amounts to 222.2 million US dollars; in the same quarter of 2006, 183.2 million US dollars was achieved, and in the third quarter of 2007 it was 205.2 million US dollars.
Non-GAAP earnings per share for the fourth quarter of 2007 were 0.49 US dollars. In the same period of the previous year, non-GAAP earnings per share of 0.33 US dollars were achieved; in the third quarter of fiscal year 2007, they were 0.45 US dollars. The target for non-GAAP earnings per share for the fourth quarter of 2007 was 0.46 to 0.48 US dollars. In the fourth quarter of 2007, non-GAAP operating income amounted to 362.2 million US dollars, compared with 256.4 million US dollars in the same period of the previous year and 340.9 million US dollars in the third quarter of 2007. This non-GAAP result for the fourth quarter of 2007 corresponds to 39.7 percent of revenue; in the corresponding period of the previous year, this figure was 37.6 percent, and in the third quarter of 2007, 40 percent was achieved.
Non-GAAP profit for the fourth quarter of 2007 amounts to 289.6 million US dollars; in the same quarter of 2006, 198.9 million US dollars was achieved, and in the third quarter of 2007 it was 269.4 million US dollars.
Outlook for First Quarter and Fiscal Year 2008
For the first quarter of fiscal year 2008, Adobe expects revenue between 855 million and 885 million US dollars, an operating profit margin (under GAAP) of 30 to 31 percent and a non-GAAP profit margin of 40 percent. Adobe plans for 586 million to 588 million shares outstanding in the first quarter of 2008 and expects other income of 15 million to 17 million US dollars for this period. These forecasts lead to expected earnings per share (under GAAP) of 0.34 to 0.36 US dollars and non-GAAP earnings of 0.44 to 0.46 US dollars per share.
For fiscal year 2008, Adobe expects revenue growth of 13 percent, an operating profit margin (under GAAP) of 30 percent and a non-GAAP profit margin of approximately 39 percent.
Share Repurchase Announced
Adobe also announces an increase in its share repurchase programme. The company now plans to acquire a total of 50 million shares instead of the 20 million units announced in April 2007.
