Adobe Systems has reported results for the first quarter of fiscal 2008, covering 1 December 2007 to 29 February 2008. Revenue reached US$890.4 million, compared with US$649.4 million in the same quarter a year earlier and US$911.2 million in the fourth quarter of fiscal 2007. This represents year-on-year revenue growth of 37 percent. Adobe’s first-quarter target range was US$855 million to US$885 million.
“Our strong first-quarter results are attributable to continued strong demand for the Creative Suite 3 product family and another record quarter for Acrobat products,” says Fritz Fleischmann, managing director of Adobe Systems GmbH and senior managing director for Central and Eastern Europe. “As the spread of digital content continues to accelerate, users worldwide rely on Adobe solutions to create rich experiences across different media and devices. We expect this trend to continue driving our business and are therefore reaffirming our targets for the current fiscal year.”
Adobe repurchased 33.3 million shares for US$1.25 billion during the quarter.
GAAP diluted earnings per share for the first quarter of 2008 were US$0.38 based on 571.3 million shares outstanding. The comparable figures were US$0.24 on 604.2 million shares in the same quarter a year earlier and US$0.38 on 587.9 million shares in the fourth quarter of fiscal 2007. The first-quarter GAAP earnings target was US$0.34 to US$0.36 per share.
GAAP operating income was US$275.4 million, compared with US$146.3 million a year earlier and US$275.8 million in the previous quarter. It represented 30.9 percent of revenue, versus 22.5 percent in the first quarter of 2007 and 30.3 percent in the fourth quarter of that year.
First-quarter GAAP net income was US$219.4 million, compared with US$143.9 million a year earlier and US$222.2 million in the previous quarter.
Non-GAAP diluted earnings per share were US$0.48, compared with US$0.30 a year earlier and US$0.49 in the fourth quarter of 2007. Adobe’s target range had been US$0.44 to US$0.46. Non-GAAP operating income was US$359 million, compared with US$223.8 million a year earlier and US$362.2 million in the previous quarter. It represented 40.3 percent of revenue, versus 34.5 percent a year earlier and 39.7 percent in the fourth quarter of 2007.
Non-GAAP net income was US$273 million, compared with US$183.6 million a year earlier and US$289.6 million in the previous quarter.
Outlook for the second quarter and fiscal 2008
For the second quarter, Adobe expects revenue of US$855 million to US$885 million, a GAAP operating margin of 29 to 30 percent and a non-GAAP operating margin of 39 percent. The company expects 546 million to 550 million shares outstanding, other GAAP income of US$14 million to US$16 million and non-GAAP other income of US$5 million to US$7 million. These forecasts produce expected earnings per share of US$0.35 to US$0.37 under GAAP and US$0.45 to US$0.47 on a non-GAAP basis. The expected GAAP and non-GAAP tax rate is approximately 27 percent.
For fiscal 2008, Adobe continues to expect revenue growth of 13 percent, a GAAP operating margin of approximately 30 percent and a non-GAAP operating margin of about 39 percent. Full-year earnings targets are US$1.45 to US$1.51 per share under GAAP and US$1.86 to US$1.92 on a non-GAAP basis.
