{"id":1785,"date":"2009-09-16T10:21:38","date_gmt":"2009-09-16T09:21:38","guid":{"rendered":"http:\/\/www.itwriting.com\/blog\/1785-adobe-financials-little-change.html"},"modified":"2009-09-16T10:21:38","modified_gmt":"2009-09-16T09:21:38","slug":"adobe-financials-little-change","status":"publish","type":"post","link":"https:\/\/www.itwriting.com\/blog\/1785-adobe-financials-little-change.html","title":{"rendered":"Adobe financials: little change in segment breakdown"},"content":{"rendered":"<p>Adobe has released its <a href=\"http:\/\/www.adobe.com\/aboutadobe\/pressroom\/pressreleases\/pdfs\/200909\/Q309Earnings.pdf\">Q3 2009 results<\/a> [pdf], which show a decline in both revenue and profits compared to Q3 2008. I\u2019m not a financial analyst, but the general view seems to be that the figures are reasonable considering the economic downturn, and that Adobe has done well to trim its costs accordingly.<\/p>\n<p>What interests me most is the <a href=\"http:\/\/www.adobe.com\/aboutadobe\/invrelations\/pdfs\/q309_irdatasheet.pdf\">breakdown<\/a> [pdf] in Adobe\u2019s revenue between tools and other services. Here\u2019s what it was <a href=\"http:\/\/www.itwriting.com\/blog\/1090-adobes-disappointing-results-headcount-reduction-plans.html\">last time I looked<\/a>:<\/p>\n<p><strong>Revenue by segment ($millions) FY2008 YTD August 2008 \u2013 representing 3<\/strong> <strong>quarters<\/strong><\/p>\n<ul>\n<li>Creative Solutions $1564.3 [58.7%] <\/li>\n<li>Business Productivity Solutions $786 [29.5%] <\/li>\n<li>Mobile and Device solutions $64.9 [2.4%] <\/li>\n<li>Other $249.4 [9.4%] <\/li>\n<\/ul>\n<p>and now:<\/p>\n<p><strong>Revenue by segment ($millions) FY2008 YTD August 2009 \u2013 representing 3<\/strong> <strong>quarters<\/strong><\/p>\n<ul>\n<li>Creative Solutions $1272.8 [58%] <\/li>\n<li>Business Productivity Solutions $646.7 [30%] <\/li>\n<li>Platform Revenue $134 [6%] <\/li>\n<li>Print and Publishing 135.1 [6%] <\/li>\n<\/ul>\n<p>It\u2019s unfortunate that the last two categories have changed, but the general picture seems to be much as before. <\/p>\n<p>Creative Solutions means mainly Creative Suite. <\/p>\n<p>Business productivity is Acrobat and LiveCycle, including Acrobat.com.<\/p>\n<p>Platform is Flash Player, AIR, Cold Fusion, Flex and the developer tools.<\/p>\n<p>Print and Publishing is the stuff you might have forgotten about: FrameMaker and PageMaker, Director, PostScript, Robohelp, and a few other bits and pieces. It\u2019s interesting that these older products generated more revenue than the trendy new platform, Flex and AIR.<\/p>\n<p>A couple of observations. First, Adobe is making little progress in reducing its dependence on sales of tools \u2013 I don\u2019t know if this is even its aim, though it strikes me that it should be, since the tools business is a precarious one and prone to commoditization. As I understand it, Adobe has considerable ambitions for building Acrobat.com as a cloud service but this looks like mostly future hope.<\/p>\n<p>Second, the huge success of Flash media on the web does not seem to be showing up as increased revenue. Maybe Microsoft\u2019s efforts with Silverlight streaming are exerting a downward pressure on prices?<\/p>\n<p>Adobe may say it is well positioned to benefit from economic recovery, which actually seems plausible.<\/p>\n<p>Disclosure: I deliberately avoid investing in companies about which I write.<\/p>\n<div style=\"padding-bottom: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; float: none; padding-top: 0px\" id=\"scid:0767317B-992E-4b12-91E0-4F059A8CECA8:006c9dc0-708a-4e08-9911-25cea4b7746c\" class=\"wlWriterEditableSmartContent\">Technorati Tags: <a href=\"http:\/\/technorati.com\/tags\/adobe\" rel=\"tag\">adobe<\/a>,<a href=\"http:\/\/technorati.com\/tags\/flash\" rel=\"tag\">flash<\/a>,<a href=\"http:\/\/technorati.com\/tags\/microsoft\" rel=\"tag\">microsoft<\/a>,<a href=\"http:\/\/technorati.com\/tags\/silverlight\" rel=\"tag\">silverlight<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Adobe has released its Q3 2009 results [pdf], which show a decline in both revenue and profits compared to Q3 2008. I\u2019m not a financial analyst, but the general view seems to be that the figures are reasonable considering the economic downturn, and that Adobe has done well to trim its costs accordingly. What interests &hellip; <a href=\"https:\/\/www.itwriting.com\/blog\/1785-adobe-financials-little-change.html\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Adobe financials: little change in segment breakdown<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1785","post","type-post","status-publish","format-standard","hentry","category-adobe"],"_links":{"self":[{"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/posts\/1785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/comments?post=1785"}],"version-history":[{"count":0,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/posts\/1785\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/media?parent=1785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/categories?post=1785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/tags?post=1785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}