Adobe 1998 Annual Report Download - page 42

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ADOBE SYSTEMS INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Years Ended
November 27 November 28 November 29
1998 1997 1996
Revenue:
Licensing ...................................... $164,145 $196,230 $196,693
Application products .............................. 730,646 715,664 589,870
Total revenue ..................................... 894,791 911,894 786,563
Direct costs ...................................... 111,437 126,271 141,147
Gross profit ...................................... 783,354 785,623 645,416
Operating expenses:
Research and development .......................... 207,339 170,862 155,418
Sales and marketing ............................... 316,691 303,268 254,972
General and administrative ......................... 95,732 75,358 62,034
Write-off of acquired in-process research and development . . — 5,969 21,251
Restructuring and other charges ...................... 38,245 (590) 4,955
Total operating expenses ............................. 658,007 554,867 498,630
Operating income .................................. 125,347 230,756 146,786
Nonoperating income, net:
Investment gain .................................. 14,994 34,290 68,875
Interest and other income .......................... 27,353 31,044 29,163
Total nonoperating income, net ........................ 42,347 65,334 98,038
Income before income taxes .......................... 167,694 296,090 244,824
Income tax provision ................................ 62,550 109,253 91,547
Net income ...................................... $105,144 $186,837 $153,277
Basic net income per share ........................... $ 1.58 $ 2.60 $ 2.12
Shares used in computing basic net income per share ........ 66,433 71,962 72,454
Diluted net income per share ......................... $ 1.55 $ 2.52 $ 2.04
Shares used in computing diluted net income per share ....... 67,974 74,160 75,132
See accompanying Notes to Consolidated Financial Statements.
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