Adobe reports decrease in Q1 revenues

20 Mar 2012

Shantanu Narayen, president and chief executive officer, Adobe Systems Inc

Fewer sales of the Creative Suite software contributed to a slower growth in first-quarter revenues for Photoshop and Acrobat software maker Adobe Systems Inc, the company said.

Sales fell 4pc from a year earlier to US$730m. Creative Suite includes popular design titles Photoshop, Illustrator, InDesign, Flash and Dreamweaver.

Chief financial officer Mark Garrett said during a conference call that Creative Suite revenue failed to meet Adobe’s expectations because customers are waiting to buy two new versions to be introduced at the end of the current quarter: Creative Suite 6 and a web-based version of the suite that will be sold via subscription, Reuters reported.

Revenue in Q1 FY2012 reached US$1.045bn, which included US$9.6m of revenue from the acquisition of Efficient Frontier, which closed in January 2012.

Diluted earnings per share amounted to US$0.37 on a GAAP-basis, and US$0.57 on a non-GAAP basis.

Operating income totalled US$289.0m and net income reached US$185.2m on a GAAP-basis. Operating income hit US$386.7m and net income totalled US$284.5m on a non-GAAP basis.

Deferred revenue increased by US$17.3m quarter-over-quarter to US$549.0m.

Cash flow from operations amounted to US$314.4m.

“Our strategy is to be the leader in digital media and digital marketing,” said Shantanu Narayen, president and chief executive officer, Adobe Systems Inc. 

“With the upcoming release of our Creative Suite and Creative Cloud offerings, and with the momentum we have in digital marketing, we remain confident about our ability to drive strong revenue and earnings growth,” Narayen said.

Adobe is targeting revenue of US$1.090bn-US$1.140bn for the second fiscal quarter of 2012. On a diluted earnings per share basis, the company is targeting US$0.37-US$0.43 on a GAAP basis, and US$0.57-US$0.61 on a non-GAAP basis.