Adobe 2001 Annual Report Download - page 25

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Also contributing to the growth in this segment in fiscal 2000 compared to fiscal 1999 was the increased
revenue from our Web and Dynamic Media Collection products, which were first introduced in the fourth
quarter of fiscal 1999, and increased licensing of our LiveMotion, Adobe Premiere, After Effects, GoLive,
and ActiveShare products. The increase in revenue in this segment was partially offset by a decline in
revenue from our PageMill and PhotoDeluxe products, due to product lifecycle timing and reduced
pricing.
Revenue from our ePaper Solutions segment increased 61% from $129.3 million in fiscal 1999 to
$207.8 million in fiscal 2000 due to the continuing penetration of Acrobat and its related technologies into
major industry sectors and various government agencies.
Revenue from our Cross-media Publishing segment increased 10% from $353.9 million in fiscal 1999
to $390.5 million in fiscal 2000. This $36.6 million increase was primarily due to the new release of
Illustrator 9.0 in the third quarter of fiscal 2000. This segment also benefited from the new release of
FrameMaker 6.0 in the second quarter of fiscal 2000, as well as increased revenue from our Adobe Design
Collection, Adobe Type Manager, Acrobat InProduction, and PressReady products. The increase in
revenue from this segment was partially offset by a decline in revenue from our Adobe Publishing
Collection product, primarily due to the introduction of our new Adobe Web, Dynamic Media, and Design
Collection products, and a decline in revenue in both our InDesign product, due to slower adoption of this
product in fiscal 2000 compared to the adoption rate upon the initial release of this product in fiscal 1999,
and our PageMaker products, due to product lifecycle timing.
The increase in revenue from the above mentioned segments in fiscal 2000 compared to fiscal 1999
was partially offset by a 5% decline in revenue from our OEM PostScript and Other segment, as it
decreased from $138.2 million in fiscal 1999 to $131.5 million in fiscal 2000. Revenue from this segment
decreased in fiscal 2000 compared to fiscal 1999 due to lower royalty rates paid by our OEMs and the
ongoing weakness in the monochrome laser printer market as a result of the following factors: loss of
royalty revenue from Hewlett-Packard Company’s (‘‘HP’’) desktop monochrome laser printer division,
which has been incorporating a clone version of Adobe PostScript software into its products since the fall
of 1997; a decline in the average selling price of monochrome laser printers; and an increase in the use of
inkjet printers, resulting in weakness in the monochrome laser printer market.
We categorize our geographic results into three major market regions: the Americas, EMEA, and
Asia. In fiscal 2001, revenue generated in the Americas, EMEA, and Asia represented 48%, 27%, and 25%
of total revenue, respectively, compared to 52%, 26%, and 22% of total revenue, respectively generated in
both fiscal 2000 and fiscal 1999.
Overall, revenue from our application products on the Windows platform increased 9% in fiscal 2001
compared to fiscal 2000, and revenue from our application products on the Macintosh platform decreased
by 21% in fiscal 2001 over fiscal 2000. In fiscal 2000 compared to fiscal 1999, revenue from our application
products on the Windows platform increased 39%, and revenue from our application products on the
Macintosh platform increased 15% during the same period. In fiscal 2001, the Windows and Macintosh
platforms accounted for 70% and 30%, respectively, of application products revenue, excluding platform-
independent and UNIX products, compared to 63% and 37%, respectively, in fiscal 2000, and 58% and
42%, respectively, in fiscal 1999. We expect the trend towards the Windows platform to continue in the
foreseeable future.
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