Adobe sees strong growth

Vendor sees 41 per cent increase in like-for-like profits thanks to CS3
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Adobe has reported a 41 per cent increase in profit, rising to $214,910 (£110,000) – up from $152,505 (£77,600) in 2007 – during its second quarter thanks to continued strong sales of its Creative Suite software range.

Revenue hit $886.9 million (£450 million), up from $745.6 million (£380 million) during the same period in 2007.

"Our strong performance in the second quarter was driven by the product mix and geographic diversity of our business," said president and chief executive Shantanu Narayen. "We continue to execute against our strategy, and are well positioned for solid financial performance in the second half of this year and beyond."

Speaking to investors, Narayen cited the success of the firm's CS3 suite as the driving force behind the company's success. "Our Creative Solutions business has had another solid quarter of performance. CS3 penetration into our creative professional customer base continues to mirror the adoption curve we experienced with CS2, with the majority of revenue continuing to be suite based."

He also had praise for other smaller areas of the business: "In the second quarter, we had strong performance across all segments of our business – creative, enterprise, knowledge worker, mobile and platform. In fact, we achieved record revenues in our Acrobat, lifecycle, mobile and platform businesses."

CS4 was also discussed during the conference call, with Narayen hinting towards more video editing support: "Video represents a huge opportunity and at the analyst meeting, we had talked about the fact that with CS3, we didn't have a full cycle in order to deliver the kind of value we can.

"And so when the next version of Creative Suite comes out, we certainly – since it will be a full cycle – expect to see significant innovation, which we think will lead to good adoption."

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