Great, and then on, just on the cost cuts, just to be absolutely clear, the way this rolls through the P&L, do we get partial impact on a non-GAAP basis in fiscal Q1 and then full impact in fiscal Q2? And if that’s correct, that partial impact just broadly as a percentage of the total impact, what will that be? Thanks.
Mark Garrett
The operating margin guidance that we provided you for the first quarter reflects the anticipated savings in the first quarter that we are going to get from the restructuring, and then there is some future restructuring that will happen in the first few quarters of the year. There are some people that transition over time. There are some facilities that we are going to shut down that happens over time. But again, what we are trying to just do is provide guidance for the first quarter and that 37% to 38% reflects the savings that you are going to see from the restructuring activities that we took.
Ross MacMillan - Jeffries & Company
But the headcount reductions, have they started or did they start just really post the end of the calendar year?
Mark Garrett
The great majority of them happened at the end of the fourth quarter, or the beginning of December, beginning of the first quarter, the great majority of them happened.
Ross MacMillan - Jeffries & Company
Okay, and then the final was just on, back to the pricing, et cetera, are you looking at, apart from demand gen around marketing, are you looking at additional promotions or other ways to think about pricing, maybe on the CS site specifically as part of that demand generation effort?
Shantanu Narayen
Again, Ross, given our belief that the results have more to do with the economic uncertainty than anything, to do with, either the product, value proposition, or the fundamental premise, our focus is primarily on making sure that there’s people going through the awareness to try and to purchase cycle. So that’s really where our, the bulk of our focus is.
Ross MacMillan - Jeffries & Company
Great thank you.
Operator
And we’ll go next to David Hilal with FBR.
David Hilal - Friedman, Billings, Ramsey
Great, I wanted to switch focus to the Flash business. Microsoft has been making some headway with Silverlight and I wanted to understand maybe either on the MLB contract or contracts like that, when you are competing with Microsoft, because historically it seems like it’s been a monopoly and while you still have dominant share, I think Silverlight is getting some traction, does the competition come down to kind of feature functionality? And if so, can you talk about that? Or does it come down to pricing and maybe the ability to subsidize some of the streaming events that these customers end up doing?
Shantanu Narayen
Well, I think it’s a combination, frankly, of making sure that the entire ecosystem is available to enable those media partners to provide the kind of engaging experience that they want. What Adobe provides is first and foremost clearly a great ubiquitous run-time and having that run-time with the kind of market share that we have enables customers to really rely on Flash being available across multiple operating systems, as well as across multiple devices. And that’s something that we will continue to have a lead over aggressive competitors like Microsoft. The second thing we do have is clearly the authoring tools and people want the ease of use in terms of authoring those engaging experiences and getting them delivered. The reality is when we think about online videos, Adobe actually came from behind. It was Windows Media player and Apple’s QuickTime that were the formats in the video space. But now approximately 80% of the online videos that are viewed worldwide are used using Flash technology and I think it’s the ubiquity of that, it’s the ease of deployment. We now also have Flash Media Servers, which allows you to stream it and so we will be very aggressive about making sure that we continue to innovate in the entire media space to keep our lead.
David Hilal - Friedman, Billings, Ramsey |