Adobe 2010 Annual Report Download - page 124

ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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from our Creative Solutions business to our Omniture business; our ColdFusion products will be been moved from our
Platform business to our Print and Publishing business; and our Presenter product that is part of our Adobe Connect offering
will be moved from our Knowledge Worker business to our Print and Publishing business. We will adjust our reportable
segments at the beginning of fiscal 2011 to reflect these changes as we enter into the new fiscal year.
Effective in the first quarter of fiscal 2010, to better align our marketing efforts and go-to-market strategies, we moved
management responsibility for the Connect Solutions product line from our Knowledge Worker segment to our Enterprise
segment. Prior year information in the table below has been reclassified to reflect this change.
Effective in the first quarter of fiscal 2009, our former Mobile and Devices Solutions segment, was integrated into our
Platform business unit to better align our engineering and marketing efforts and is now reported as part of the Platform
segment. Prior year information in the table below has been reclassified to reflect the integration of these business units.
We report segment information based on the “management” approach. The management approach designates the
internal reporting used by management for making decisions and assessing performance as the source of our reportable
segments.
Our chief operating decision maker reviews revenue and gross margin information for each of our reportable segments.
Operating expenses are not reviewed on a segment by segment basis. In addition, with the exception of goodwill and
intangible assets, we do not identify or allocate our assets by the reportable segments.
Our segment results for fiscal 2010, 2009 and 2008 were as follows (dollars in thousands):
Creative
Solutions
Knowledge
Worker Enterprise Omniture(1) Platform(2)
Print and
Publishing Total
Fiscal 2010
Revenue ................................
$
2,056,546
$
654,327
$
355,046
$
360,564
$
178,906
$
194,611
$
3,800,000
Cost of revenue ....................
120,744
20,266
61,726
179,461
9,991
11,314
403,502
Gross profit...........................
$
1,935,802
$
634,061
$
293,320
$
181,103
$
168,915
$
183,297
$
3,396,498
Gross profit as a
percentage of revenue ......
94%
97%
83%
50%
94%
94%
89%
Fiscal 2009
Revenue ................................
$
1,702,110
$
557,598
$
300,870
$
26,272
$
181,033
$
177,970
$
2,945,853
Cost of revenue ....................
152,909 29,221 58,925 15,829 21,174 18,674 296,732
Gross profit...........................
$
1,549,201 $ 528,377 $ 241,945 $ 10,443 $ 159,859 $ 159,296 $ 2,649,121
Gross profit as a
percentage of revenue
......
91% 95% 80% 40% 88% 90% 90%
Fiscal 2008
Revenue ................................
$
2,072,835
$
757,728
$
306,131
$
—
$
231,558
$
211,637
$
3,579,889
Cost of revenue ....................
160,560
43,777
85,044
—
44,344
28,905
362,630
Gross profit...........................
$
1,912,275
$
713,951
$
221,087
$
—
$
187,214
$
182,732
$
3,217,259
Gross profit as a
percentage of revenue ......
92%
94%
72%
—
81%
86%
90%
_________________________________________
(1) Fiscal 2010 and 2009 includes the integration of Omniture as a new reportable segment beginning in the fourth quarter
of fiscal 2009. Fiscal 2008 does not include the impact of our acquisition of Omniture. Of the $360.6 million and $26.3
million in revenue from our Omniture segment for fiscal 2010 and 2009, respectively, approximately $309.1 million and
$22.2 million, respectively, represents subscription revenue and the remaining amounts represent professional services
and support.
(2) Platform revenue includes revenue related to our Mobile client products of $25.7 million, $51.3 million and $113.1
million for fiscal 2010, 2009 and 2008, respectively, or 14%, 28% and 49% of Platform revenues, respectively.