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Adobe revenues grow but miss out on $1bn mark

Simon Quicke

Adobe is aiming to break through the $1bn revenue barrier in its next fiscal quarter after delivering solid growth in Q3.

The software vendor saw its revenues for the three months ended 3 September increase by 42% from $697.5m to $990.3m but miss out on reaching its billion target. Tear-on-year operating income also increased from $167m to $302m.

Weakness in the US education sector and the Japanese market undermined its ambitions in Q3 said Mike Saviage, vice president of investor relations at Adobe.

He added that Europe had held up along with its home market in the US: "results on a percent of revenue basis were as follows: The Americas, 51%; Europe, 29%; Asia, 20%. With the exception of some weakness in Japan in Q3, we experienced stability in our business across all the other major geographies during the quarter."

Adobe is heavily reliant on its core product Creative Suite 5 and there were indications in the results that its performance was coming under pressure with the creative solutions business expected to be flat in Q4.

Adobe CEO Shantanu Narayen said the vendor was confident it would reach its target of reaching $5bn revenue by 2012 and believed it was in a prime position to take advantage of the current state of the technology landscape.

"Adobe is at the center of the digital content revolution. Using our solutions, customers can create, deliver, optimize and monetize their content and applications across platforms, OSs, and devices," he said.


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