Business News
Adobe Reports Record Revenue
Wednesday 22. September 2010 - Q3 Performance Driven by Strong Momentum with Creative Suite, Omniture and Enterprise Products
Adobe Systems Incorporated (Nasdaq:ADBE) today reported strong financial results for its third quarter fiscal year 2010 ended Sept. 3, 2010.
“Strong performance in each of our major businesses contributed to record revenue and strong earnings in Q3”
In the third quarter of fiscal 2010, Adobe achieved record revenue of $990.3 million, compared to $697.5 million reported for the third quarter of fiscal 2009 and $943.0 million reported in the second quarter of fiscal 2010. This represents 42 percent year-over-year revenue growth. Adobes third quarter revenue target range was $950 million to $1 billion.
“Strong performance in each of our major businesses contributed to record revenue and strong earnings in Q3,” said Shantanu Narayen, president and CEO of Adobe. “We remain bullish about Adobe’s long-term role in enabling the transformation of content and applications across industries.”
Third Quarter Fiscal 2010 GAAP Results
Adobes GAAP diluted earnings per share for the third quarter of fiscal 2010 were $0.44, based on 523.2 million weighted average shares. This compares with GAAP diluted earnings per share of $0.26 reported in the third quarter of fiscal 2009 based on 531.8 million weighted average shares, and GAAP diluted earnings per share of $0.28 reported in the second quarter of fiscal 2010 based on 533.3 million weighted average shares.
GAAP operating income was $302.0 million in the third quarter of fiscal 2010, compared to $167.6 million in the third quarter of fiscal 2009 and $227.3 million in the second quarter of fiscal 2010. As a percent of revenue, GAAP operating income in the third quarter of fiscal 2010 was 30.5 percent, compared to 24.0 percent in the third quarter of fiscal 2009 and 24.1 percent in the second quarter of fiscal 2010.
GAAP net income was $230.1 million for the third quarter of fiscal 2010, compared to $136.0 million reported in the third quarter of fiscal 2009 and $148.6 million in the second quarter of fiscal 2010.
Third Quarter Fiscal 2010 Non-GAAP Results
Adobes non-GAAP diluted earnings per share for the third quarter of fiscal 2010 were $0.54. This compares with non-GAAP diluted earnings per share of $0.35 reported in the third quarter of fiscal 2009 and non-GAAP diluted earnings per share of $0.44 reported in the second quarter of fiscal 2010.
Adobes non-GAAP operating income was $384.9 million in the third quarter of fiscal 2010, compared to $237.1 million in the third quarter of fiscal 2009 and $334.5 million in the second quarter of fiscal 2010. As a percent of revenue, non-GAAP operating income in the third quarter of fiscal 2010 was 38.9 percent, compared to 34.0 percent in the third quarter of fiscal 2009 and 35.5 percent in the second quarter of fiscal 2010.
Non-GAAP net income was $284.0 million for the third quarter of fiscal 2010, compared to $186.1 million in the third quarter of fiscal 2009 and $234.2 million in the second quarter of fiscal 2010.
Reconciliation between GAAP and non-GAAP results is provided at the end of this press release.
Fourth Quarter Fiscal 2010 Financial Targets
For the fourth quarter of fiscal 2010, Adobe is targeting revenue of $950 million to $1 billion. The Companys operating margin is targeted to be 27 percent to 30 percent on a GAAP basis, and 37 percent to 38 percent on a non-GAAP basis. In addition, the Company is targeting its share count to be between 516 million and 520 million shares, and it is targeting non-operating expense between $14 million and $19 million. Adobes GAAP and non-GAAP tax rate is expected to be approximately 24.5 percent.
These targets lead to a fourth quarter diluted earnings per share target range of $0.35 to $0.41 on a GAAP basis, and an earnings per share target range of $0.48 to $0.54 on a non-GAAP basis.
Reconciliation between these GAAP and non-GAAP financial targets is provided at the end of this press release.