Adobe 2010 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2010 Adobe annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

65
Revenue from Platform decreased $2.1 million during fiscal 2010 as compared to fiscal 2009. The decrease was due to
lower developer tool revenue based on the inclusion of developer tools within some CS5 suites, offset in part by an increase
in distribution revenue from OEM relationships with companies such as Google, where we offer their technologies as part of
the download of Flash Player, Shockwave Player and Reader and generate revenue through successful installations of these
technologies.
Revenue from Print and Publishing increased $16.6 million during fiscal 2010 as compared to fiscal 2009 due to an
improved economic environment in certain markets and geographies, the launch of new products, fees received for
engineering services and royalties related to PostScript products.
Fiscal 2009 Revenue Compared to Fiscal 2008 Revenue
Revenue from Creative Solutions decreased $370.7 million during fiscal 2009 as compared to fiscal 2008 primarily due
to reduced adoption of our CS family of products because of the global recession and generally weak macro-economic
environment in fiscal 2009. The decrease was driven largely by a 15% decline in Creative Suites related revenue and a
decline of 27% in Photoshop point product revenue. Also contributing to the decrease was an overall decline in the number of
units licensed. Average unit selling prices remained relatively consistent.
Revenue in Knowledge Worker decreased $200.1 million during fiscal 2009 as compared to fiscal 2008 for similar
reasons as Creative Solutions in addition to a decrease in the licensing of our Acrobat family of products. We attribute the
decline in revenue to lower volume licensing by our enterprise customers, as well as a decrease in the number of units sold
through our shrink-wrap distribution channel. Average unit selling prices remained relatively consistent.
Revenue from Enterprise decreased $5.3 million during fiscal 2009 as compared to fiscal 2008 primarily due to the
economic slowdown in fiscal 2009 which resulted in reduced spending by our enterprise customers.
We acquired Omniture in the fourth quarter of fiscal 2009, and as such, there is no prior fiscal 2008 period with which
to compare Omniture fiscal 2009 revenue.
Revenue from Platform decreased $50.6 million during fiscal 2009 as compared to fiscal 2008 due to the impact of the
OSP which we announced on May 1, 2008, and involves the removal of certain licensing fees of our Flash Lite client with
OEMs.
Revenue in Print and Publishing decreased $33.6 million during fiscal 2009 as compared to fiscal 2008 due to reduced
demand because of the global macro-economic downturn in fiscal 2009.
Geographic Information (dollars in millions)
Fiscal
2010
Fiscal
2009
Fiscal
2008
% Change
2010-2009
% Change
2009-2008
Americas ..............................................
$
1,859.0
1,382.6
1,632.8
34
%
(15
)%
Percentage of total revenue ..............
49
%
46
%
46
%
EMEA ..................................................
1,168.2
928.9
1,229.2
26
%
(24
)%
Percentage of total revenue ..............
31
%
32
%
34
%
Asia ......................................................
772.8
634.4
717.9
22
%
(12
)%
Percentage of total revenue ..............
20
%
22
%
20
%
Total revenue .......................................
$
3,800.0
2,945.9
3,579.9
29
%
(18
)%
Fiscal 2010 Revenue by Geography Compared to Fiscal 2009 Revenue by Geography
Overall revenue in each of the geographic segments for fiscal 2010 increased compared to fiscal 2009 primarily due to
the launch of CS5 in the second quarter of fiscal 2010 as well as additional revenue from Omniture which we acquired in the
fourth quarter of fiscal 2009. Increased revenue in our Knowledge Worker and Enterprise business segments also contributed
to the increase as well as an improved economy across all geographies.
Included in the overall increase in revenue were impacts associated with foreign currency. The U.S. dollar strengthened
against both the Euro and British pound causing revenue in EMEA measured in U.S. dollars to decrease by approximately
$18.4 million and $3.3 million, respectively, as compared to fiscal 2009. Revenue in Japan measured in U.S. dollars was
favorably impacted by approximately $23.7 million due to the strength of the Yen against the U.S. dollar as compared to
fiscal 2009. The Australian dollar also strengthened against the U.S. dollar resulting in a favorable impact to revenue of
approximately $12.1 million during fiscal 2010. We had no comparable impact to revenue from the Australian dollar during
fiscal 2009. Our currency hedging program is used to mitigate a portion of the foreign currency impact to revenue. During