Adobe Systems Reports Second Quarter Results
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--June 25, 1996--Adobe (NASDAQ:ADBE) Systems Incorporated today
announced results for its second quarter of fiscal 1996. Total revenue for the quarter ended May 31, 1996 was $204,337,000,
an increase of 8 percent from the $189,498,000 posted for the second quarter of fiscal 1995.
Net income from continuing operations was $34,053,000, and earnings per share were $.45, compared to net income of
$35,245,000, and earnings per share of $.47 for the second quarter of fiscal 1995. During the quarter, the company acquired
Ares Software and wrote off $14,699,000 of in- process research and development costs in conjunction with that acquisition.
Including this charge, net income for the quarter was $22,009,000 and $.29 per share.
For the six months ended May 31, 1996, total revenue was $397,979,000, an increase of 5 percent from the $378,343,000
reported for the same period a year ago. Net income from continuing operations was $67,716,000 and earnings per share
were $.89, versus $71,389,000 and earnings per share of $ .96, for the comparable period last year. Including the write-off of
Ares in-process research and development, net income was $55,672,000, and earnings per share were $.73.
"We believe our strategy to develop more tightly integrated products that share common features and functionality is paying
off," said John Warnock, Chairman and Chief Executive Officer of Adobe. "We've seen stronger sales this quarter of our major
graphics products, Adobe Photoshop and Adobe Illustrator, demonstrating that our customers are responding to the benefits of
a common user experience."
Application products revenue was $155,050,000, up 7 percent from the $144,466,000 reported for the second quarter of
fiscal 1995 and 6 percent from the previous quarter's revenue of $146,731,000.
Warnock continued, "During the quarter, we announced a new divisional structure that will allow us to focus more closely on
emerging and faster-growth markets, while continuing to expand market opportunities for our established products. The
divisions are Internet Products; Consumer Products; Graphics Products; Printing and Systems; and Publishing products."
Licensing revenue for the second quarter was $49,287,000, a 9 percent increase over the $45,032,000 posted for the second
quarter of fiscal 1995, and 5 percent over the $46,911,000 in the previous quarter. The sequential growth in licensing revenue
was primarily attributable to increasing OEM shipments of color printers, Kanji printers, and Kanji and Roman CPSI products.
During the quarter, the company acquired Ares Software, strengthening Adobe's position as a leading provider of printing
system solutions. The font technology developed by Ares will be integrated into Adobe PostScript technology, offering
Adobe's 65 printer manufacturers a low-cost solution for including hundreds of typefaces in their PostScript printers without
compromising printer performance or significantly impacting cost.
At PC Expo last week, the Printing and Systems division announced an expansion of its business relationship with IBM
Corporation to address network printing needs with a family of network printers featuring Adobe PostScript. Adobe now
supplies technology for IBM from high-end production and distributed printing systems to the network printer market.
This quarter, NEC Technologies shipped the first monochrome laser printers based on Adobe's new PrintGear technology.
Adobe's PrintGear architecture is a combination of host- based printing software and custom-designed printer hardware that
allows printer manufacturers to deliver superior performance, quality and features at competitive prices.
During the quarter, the company repurchased 1,000,000 shares of its common stock and arranged options to purchase an
additional 740,000 shares in the third fiscal quarter. Adobe's Board of Directors has now authorized the company to
repurchase up to 5,000,000 more shares of its common stock in order to fund shares needed for issuance under its employee
stock plans.
The Board of Directors declared a cash dividend for its second fiscal quarter of $.05 per common share for its shareholders of
record as of July 8, 1996, payable on July 22, 1996.
Based in Mountain View, California, Adobe Systems Incorporated develops and supports products to help people express
and use information in more imaginative and meaningful ways, across all print and electronic media. Founded in 1982, Adobe
helped launch the desktop publishing revolution. Today, the company offers a market-leading line of application software and
type products for creating and distributing visually rich communication materials; licenses its industry-standard technologies to
major hardware manufacturers, software developers and service providers; and offers integrated software solutions to
businesses of all sizes. For more information, see Adobe's home page at adobe.com on the World Wide Web.
NOTE TO EDITORS: Adobe, the Adobe logo, Adobe Illustrator, Adobe PhotoShop, PostScript and PrintGear are
trademarks of Adobe Systems.
(Tables to follow).
CONTACT: Adobe Systems Incorporated
Bruce Nakao, (415) 962-2071, nakao@adobe.com
Carolyn Schwartz, (415) 962-3302, cschwart@adobe.com
Carol Sacks, (415) 962-4989, csacks@adobe.com |
