PR: Adobe Systems Reports Second Quarter Fiscal 2003 Results
Acrobat 6.0 release drives 43 percent year-over-year revenue growth in ePaper business

12 June 2003

San Jose, CA -- Adobe Systems Incorporated, the leader in network publishing, today reported financial results for its second quarter ended May 30, 2003 that came in at the high end of the Company's prior revenue and earnings per share target ranges.

In the second quarter of fiscal 2003, Adobe achieved revenue of $320.1 million, compared to $317.4 million reported for the second quarter of fiscal 2002 and $296.9 million reported in the first quarter of fiscal 2003. Adobe's revised second quarter revenue target range was $305 to $320 million, up from its prior target range of $300 to $315 million.

GAAP diluted earnings per share for the second quarter of fiscal 2003 were $0.27. Pro forma diluted earnings per share for the second quarter of fiscal 2003, which does not include an investment loss from the Company's venture program, were $0.28. Adobe's GAAP and pro forma second quarter earnings target range was $0.24 to $0.28 per share, up from its prior target range of $0.24 to $0.27.

"The release of Acrobat 6.0 in Q2 helped drive record revenue in our ePaper business, and signals the beginning of a strong product cycle," said Bruce Chizen, president and CEO of Adobe Systems. "This month we're celebrating 10 years of Acrobat and PDF. From communicating business critical information across the enterprise to sharing photos with friends and family, Acrobat and PDF have clearly become synonymous with the reliable delivery of digital information."

GAAP net income was $64.2 million for the second quarter of fiscal 2003, compared to $54.3 million reported in the second quarter of fiscal 2002, and $54.2 million in the first quarter of fiscal 2003.

Pro forma net income, which does not, as applicable, include amortization of goodwill and purchased intangibles, restructuring and other charges, acquired in-process research and development, and investment losses, was $66.7 million for the second quarter of fiscal 2003, compared to $67.4 million in the second quarter of fiscal 2002, and $58.9 million in the first quarter of fiscal 2003.

GAAP diluted earnings per share for the second quarter of fiscal 2003 were $0.27, based on 239.2 million weighted average shares. This compares with GAAP diluted earnings per share of $0.22 reported in the second quarter of fiscal 2002, based on 247.7 million weighted average shares, and GAAP diluted earnings per share of $0.23 reported in the first quarter of fiscal 2003, based on 235.3 million weighted average shares.

Adobe's GAAP operating income was $91.5 million in the second quarter of fiscal 2003, compared to $90.8 million in the second quarter of fiscal 2002 and $80.5 million in the first quarter of fiscal 2003. As a percent of revenue, GAAP operating income for the second quarter was 28.6 percent, compared to 28.6 percent in the second quarter of fiscal 2002 and 27.1 percent in the first quarter of fiscal 2003.

Adobe's pro forma operating income, which does not, as applicable, include the amortization of goodwill and purchased intangibles, restructuring and other charges, and acquired in-process research and development, was $91.5 million in the second quarter of fiscal 2003, compared to $96.4 million in the second quarter of fiscal 2002 and $80.5 million in the first quarter of fiscal 2003. As a percent of revenue, pro forma operating income for the second quarter was 28.6 percent, compared to 30.4 percent in the second quarter of fiscal 2002 and 27.1 percent in the first quarter of fiscal 2003.

For the third quarter of fiscal 2003, the Company announced that it is targeting revenue at $300 to $315 million, a gross margin of 92 to 93 percent, and GAAP and pro forma operating margin ranges of 24 to 27 percent.

As a percent of revenue, Adobe is targeting third quarter expenses as follows:

  • Research & Development - approximately 22 to 23 percent

  • Sales & Marketing - approximately 34 to 35 percent

  • General & Administrative - approximately 10 percent

In addition, Adobe is targeting its share count range to be between 243 and 245 million shares in the third quarter of fiscal 2003. The Company also is targeting other income to be approximately $3 million, and a tax rate of 30 percent. These targets lead to GAAP and pro forma target ranges of $0.22 to $0.25 earnings per share in the quarter.

For fiscal 2003 on an annual basis, the Company continues to target GAAP and pro forma operating margins of at least 28 percent.

The Company currently believes that targeted pro forma earnings per share and pro forma operating margin results will not differ materially from targeted GAAP results.

The Company also said that it plans to release several of its Creative Professional applications in the fourth quarter of the year.

The Adobe Board of Directors declared this quarter's cash dividend of $0.0125 per share, payable on July 7, 2003 to stockholders of record as of June 23, 2003.

About Adobe Systems Incorporated: Founded in 1982, Adobe Systems Incorporated, the leader in network publishing, offers a comprehensive line of software for enterprise and creative professional customers. Its products enable customers to create, manage and deliver visually rich, compelling and reliable content. Based in San Jose, Calif., Adobe is one of the world's largest software companies.


MORE INFO

To Top


PDF In-Depth Free Product Trials Ubiquitous PDF

Debenu Aerialist

The ultimate plug-in for Adobe Acrobat. Advanced splitting, merging, stamping, bookmarking, and link...

Download free demo

Debenu PDF Tools Pro

It's simple to use and will let you preview and edit PDF files, it's a Windows application that makes...

Download free demo

Five visions of a PDF Day

In the world of PDFs or as we like to say Planet (of) PDF, a year isn't a real PDF year without an intense few days of industry knowledge sharing.

May 15, 2018
Platinum Sponsor





Search Planet PDF
more searching options...
Planet PDF Newsletter
Most Popular Articles
Featured Product

Debenu PDF Aerialist

The ultimate plug-in for Adobe Acrobat. Advanced splitting, merging, stamping, bookmarking, and link control. Take Acrobat to the next level.

Features

Adding a PDF Stamp Comment

OK, so you want to stamp your document. Maybe you need to give reviewers some advice about the document's status or sensitivity. This tip from author Ted Padova demonstrates how to add stamps with the Stamp Tool along with related comments.