Adobe Systems reports third quarter 1995 results.MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Sept. 18, 1995--Adobe Systems Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADBE ADBE Adobe Systems, Inc. (stock symbol) ) today announced results for its third quarter of fiscal 1995. Total revenue for the quarter ended Sept. 1, 1995 was $156.7 million, an increase of seven percent from the $146.6 million posted for the third quarter of fiscal 1994. The year to year revenue comparison for comparable product lines, excluding revenue from the Aldus Freehand See Macromedia Freehand. and PhotoStyler PhotoStyler was developed by ULead - Taiwan. The Aldus Prepress group identified the product as a potential acquisition for Aldus since Aldus did not have an imaging product that could compete with Adobe PhotoShop. The acquisition was completed in 1992 and Aldus PhotoStyler was launched. programs, reflected a gain of 18 percent. Revenue from the company's second quarter, ended June June: see month. 2, 1995, was $168.0 million. Net income was $29.5 million, and earnings per share were $.44, compared to net income of $18.1 million, and earnings per share of $.29, for the third quarter of fiscal 1994. This was an increase of 63 percent and 52 percent, respectively. Removing the results of Freehand See Macromedia FreeHand. and PhotoStyler from last year's third quarter would result in net income rising 131 percent and earnings per share gaining 120 percent. Earnings per share for the previous quarter ended June 2, 1995 were $.51. For the nine months ended Sept. 1, 1995, total revenue was $493.2 million, a 14 percent increase from the $432.3 million reported for the comparable period a year ago. Net income was $97.7 million, or $1.48 per share, compared to $54.5 million, or $.88 per share, for the comparable period of fiscal 1994, representing percentage gains of 79 percent and 68 percent, respectively. Without Freehand and Photostyler, revenue, net income and earnings per share for the nine-month period increased 27 percent, 168 percent and 151 percent, respectively. Application products revenue, which includes PrePress In typography and printing, the preparation of camera-ready materials up to the actual printing stage, which includes typesetting, page makeup and plate processing. By the turn of the century, the creation of digital content by authors and designers, digital printers, computer-to-plate and Acrobat Document exchange software from Adobe that allows documents to be displayed and printed the same on every computer. The Acrobat system created the Portable Document Format (PDF), which is widely used in commercial printing and on the Web. See PDF. product sales, grew four percent to $111.6 million, compared to $107.5 million for the same quarter last year. Without Freehand and Photostyler, product revenue last year was $93.3 million, generating a gain of nearly 20 percent. Licensing revenue, at $45.1 million, remained on a positive track, gaining 15 percent over the $39.1 million posted for the third quarter of fiscal 1994. "Although licensing revenue and Acrobat revenue both reported healthy numbers for the quarter, we were disappointed in the lower than expected applications revenue," said John Warnock John Warnock (b. October 6, 1940) is an American computer scientist best known as the co-founder with Charles Geschke of Adobe Systems Inc., the graphics and publishing software company. Although retired as CEO in 2001, he still co-chairs the board with Geschke. , chairman and chief executive officer of Adobe Systems Adobe Systems Incorporated (pronounced a-DOE-bee IPA: /əˈdoʊbiː/) (NASDAQ: ADBE) (LSE: ABS) is an American computer software company headquartered in San Jose, California, USA. Inc. "The main reason for the lower numbers was a sharp decline in our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. business, and Adobe PageMaker PageMaker was the first desktop publishing program, introduced in 1985 by Aldus Corporation[1], initially for the Apple Macintosh but soon after also for the PC. It relies on Adobe Systems' PostScript page description language. 6.0 for the Macintosh platform shipped later in the quarter than we had expected. In contrast, Acrobat sales increased significantly over both last year's comparable quarter and over the previous quarter." In late August, the company shipped PageMaker A full-featured desktop publishing program for Windows and Macintosh from Adobe. PageMaker is the de facto standard in the graphics arts industry. It is used to create ads, brochures, newsletters and books of all sizes and kinds. 6.0 for the Apple Macintosh Apple Macintosh - Macintosh and Power Macintosh See Power Mac. (computer) Power Macintosh - Apple Computer's personal computer based on the PowerPC, introduced on 1994-03-14. Existing 680x0 code (both applications and device drivers) run on Power Macintosh systems without modification via a Motorola 68LC040 emulator. , a major upgrade to the world's leading professional page composition software. PageMaker 6.0 for the Windows platform is expected to ship in the fourth fiscal quarter. Also introduced during the quarter was a new version of Acrobat. Acrobat 2.1 provides new support for multimedia and World Wide Web publishing Creating a Web site and placing it on the Web server. A Web site is a collection of HTML pages with the home page typically named INDEX.HTML. Web sites are designed using Web authoring software which provides a graphical layout capability or by hand coding in HTML or both. , as well as other enhancements. "Preliminary indications from PageMaker sales indicate that our fourth quarter application revenue will be back on track," continued Warnock Warnock is a surname, and may refer to:
 r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . We also anticipate incremental Additional or increased growth, bulk, quantity, number, or value; enlarged.Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue from PageMaker for Windows, and continued momentum from Acrobat sales." Over the next 15 months, the company plans to release upgrades of all its major application products, including logo compliant versions for the Windows '95 operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. . Adobe's board of directors declared a cash dividend for its third fiscal quarter of $.05 per common share for its shareholders of record as of Oct. 6, 1995 and payable on Oct. 20, 1995. Adobe Systems Inc., founded in 1982, is headquartered in Mountain View. Adobe adobe (ədō`bē): see rammed earth. adobe Handmade sun-dried bricks formed from a mixture of heavy clay and straw found in arid regions. develops, markets and supports computer software products and technologies that enable users to create, display, print and communicate electronic documents. The company licenses its technology to major computer, printing and publishing suppliers, and markets a line of applications software and type products for authoring visually rich documents. Additionally, the company markets a line of powerful, but easy to use, products for home and small business users. Adobe has subsidiaries in Europe and the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. , serving a worldwide network of dealers and distributors. -0-
Condensed Consolidated Statements of Income
Unaudited
(in thousands, except per share data)
Quarters ended Nine months ended
Sept. 1 Aug. 26 Sept. 1 Aug. 26
1995 1994 1995 1994
Revenue: Licensing $ 45,091 $ 39,130 $136,486 $115,713 Application products 111,563 107,507 356,752 316,609 Total revenue 156,654 146,637 493,238 432,322 Direct costs 25,712 26,162 89,267 80,061 Gross margin 130,942 120,475 403,971 352,261 Operating Expenses: Software development costs: Research and development 29,155 24,353 82,017 69,537 Amortization of capitalized software development costs 1,929 3,916 7,084 10,689 Sales, marketing and customer support 49,682 52,283 144,970 149,401 General and administrative 11,396 12,928 35,062 39,068 Write-off of acquired in-process research and development -- -- -- 3,045 Total Operating Expenses 92,162 93,480 269,133 271,740 Operating Income 38,780 26,995 134,838 80,521 Nonoperating income, net: Interest investment and other income 6,754 1,757 19,028 5,625 Income before income taxes 45,534 28,752 153,866 86,146 Provision for income taxes 16,081 10,691 56,161 31,686 Net income $ 29,453 $ 18,061 $ 97,705 $ 54,460 Net income per share $ .44 $ .29 $ 1.48 $ .88 Shares used in computing net income per share 67,121 62,566 66,032 61,874
Condensed Consolidated Statements of Income
Unaudited
(1994 without FreeHand and PhotoStyler)
(In thousands, except per share data)
Quarters Ended Nine Months Ended
Sept. 1 Aug. 26 Sept. 1 Aug. 26
1995 1994 1995 1994
Revenue: Licensing $ 45,091 $ 39,130 $136,486 $115,713 Application products 111,563 93,255 356,752 271,946
Total revenue 156,654 132,385 493,238 387,659
Direct costs 25,712 21,089 89,267 64,590
Gross margin 130,942 111,296 403,971 323,069
Operating expenses:
Software development costs:
Research and development 29,155 24,018 82,017 68,883
Amortization of
capitalized software
development costs 1,929 3,916 7,084 10,689
Sales, marketing and
customer support 49,682 51,531 144,970 146,491
General and administrative 11,396 12,928 35,062 39,068
Write-off of acquired in-
process research and
development -- -- -- 3,045
Total operating expenses 92,162 92,393 269,133 268,176 Operating income 38,780 18,903 134,838 54,893 Nonoperating income, net: Interest, investment and other income 6,754 1,757 19,028 5,625 Income before income taxes 45,534 20,660 153,866 60,518 Provision for income taxes 16,081 7,884 56,161 24,029 Net income $29,453 $12,776 $97,705 $36,489 Net income per share $ .44 $ .20 $ 1.48 $ .59 Shares used in computing net income per share 67,121 62,566 66,032 61,874
Condensed Consolidated Balance Sheets
(In thousands)
Sept. 1 Nov. 25
1995 1994
---------- ----------
(Unaudited)
Assets:
Cash and cash equivalents $ 108,817 $ 190,091
Short-term investments 365,469 210,269
Receivables 92,762 96,585
Inventories 6,983 9,619
Other current assets 9,912 7,837
Deferred income taxes, current 19,675 17,962
Property and equipment 43,531 39,104
Other assets 91,089 45,561
Deferred income taxes, long-term 9,802 8,475
--------- ----------
$ 748,040 $ 625,503
Liabilities and Shareholders' Equity:
Trade and other payables $ 21,916 $ 30,840
Accrued expenses 73,998 79,000
Accrued restructuring charges 8,701 28,457
Income taxes payable 23,695 23,083
Deferred revenue 8,573 7,352
Common stock 206,536 142,207
Unrealized gains (losses) on investments 1,656 (1,088)
Retained earnings 407,872 319,704
Cumulative foreign currency translation
adjustment (4,907) (4,052)
--------- ----------
$ 748,040 $ 625,503
-0- Note to Editors: Acrobat, Adobe, Adobe PageMaker and Aldus The software company that pioneered desktop publishing with its PageMaker program for the Macintosh. Aldus was acquired by Adobe. are trademarks of Adobe Systems Inc. or its subsidiaries, and may be registered in certain jurisdictions. Macintosh is a registered trademark of Apple Computer, Inc. Windows is a registered trademark of Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. Corp. CONTACT: Adobe Systems Inc., Mountain View M. Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Nakao, 415/962-2071 (analyst) Carolyn Schwartz, 415/962-3302 (analyst) Carol Sacks, 415/962-4989 (media) |
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