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Technology Stocks : Adobe (adbe) opinions

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To: Sam who wrote (1824)	10/1/1997 5:47:00 PM
From: Frances	of 3111

>And yes, of course Postscript revenue is only 20% of their total. >But the margins on that revenue are obscenely high >(their expenses are R&D and some marketing), >which is undoubtedly why HP is trying to >break free of Adobe's grip on the market. The gross margins for adobe's app business has gone up to the high 80% level due to high volumn and shifting to CD-ROM instead of floppy. The app business's(especially PhotoShop,Illustrtor & PageMaker) profit margin (gross margin minus R&D, QA, Marketing and general expenses)is now as high as the postscript business. The PDF printing will push the acceptance of Postscript-3 if PDF publishing (paper and web electronics) prevails.

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