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Adobe Systems Q4 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 9:02 AM ET December 27 2008


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Adobe reported fourth quarter revenues of $915.3 million and full year 2008 revenues of $3.58 billion. The company expects revenue and earnings per share in the range of $800 million to $850 million and 30 cents to 35 cents in the first quarter of fiscal 2009.

 
Okay, great. Thank you.

Operator

And we’ll go next to Steven Ashley with Robert W. Baird.

Steven Ashley - Robert W. Baird

Thank you. My question is about the credit solutions business. In the publishing market, if we look at traditional, maybe newspaper and magazine publishers, how important of a market is that for you and what kind of performance have you seen out of that group?

Shantanu Narayen

Well Steve, I think as you think about the publishing market, increasingly the publishers who are focused primarily on print publishing have certainly been moving from print to the web, and so that’s why the print-to-web features that we have, have become more important. They are also increasingly looking at video as a new means of communication and so they have been also moving towards the video production suite. The way I would characterize that entire business, frankly, is that as you look at employment, if employment exists in those publishing markets and they are spending, the Creative Suite tends to be the top of the list. I’ve met a number of customers who say if they are going to buy a piece of software, to increase their productivity it’s going to be Creative Suite 4. But I think the economic impact certainly weighs on them as well. So from our perspective, we’ve been focused on making sure that as they migrate from print to web to video to wireless, that Creative Suite is ahead of where they want to be.

Steven Ashley - Robert W. Baird

Great, and just maybe a quick comment on how Flex Builder might have performed in the platform business within the platform business period?

Shantanu Narayen

We are continuing to see a fairly good demand for Flex Builder and in addition to the Flex Builder, we are actually also pretty excited about the possibilities associated with Flash Catalyst, Steve, that as you know, we showed at our recent MAX conference. So clearly the number of people who have been downloading the AIR SDK and who have been looking at Flex Builder and our other development tools to create these engaging applications is going up.

Steven Ashley - Robert W. Baird

Great thanks.

Operator

And we’ll go next to Walter Pritchard with Cowen and Company.

Walter Pritchard - Cowen and Company

Just two questions, one on the mobile side, there’s been kind of a lot of press, maybe six or nine months ago, about a lack of Flash on the iPhone when it launched and I noticed just kind of on the new category of these devices, kind of the richer mobile devices, you haven’t been able to come up with a solution or there hasn’t been a business arrangement negotiated between you and these parties. I’m just wondering, I know you are probably not willing to talk about it specifically but in general, could you just address that topic and where that overall technology and business prospects stand for that market?

Shantanu Narayen

Sure. So, smartphones continues to be a category that we are focused on. We have clearly streamlined our strategic intent to make sure that we have both web browsing as well as AIR support on these smartphones. We actually already deliver Flash for smartphones, such as those powered by either the series 60 from Nokia, running the Symbian operating system and/or running Windows Mobile, as well as in Japan we certainly have a lot of support. So I would say that already today we have a lot of smartphone category phones that are supported with Flash. That’s why we’ve shipped over 800 million and we say we expect to reach our $1 billion mark sooner than anticipated. The other ones are ones that we are working on. At MAX recently, we also showed a prototype of Flash running on the Android operating system that’s powered by Google, and now we have also said that we are only going to focus on Flash 10 rather than Flash Lite, which is why it’s taking a little time. But we fully expect to see versions running for smartphones in the middle of next year.

Walter Pritchard - Cowen and Company


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