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30
desktop products whereby Adobe offers a range of support programs, from fee-based incident to annual support
contracts, and Developer Support to partners and developer organizations.
For fiscal 2002, our services and support revenue increased $11.6 million, or 100%, compared to fiscal 2001
solely due to the acquisition of the Accelio business in April 2002.
Geographic and Platform Information
We categorize our geographic results into three major market regions: the Americas, EMEA, and Asia.
Revenue generated in the Americas, EMEA, and Asia as a percentage of total revenue is presented below:
2002 2001 2000
Americas 50% 48% 52 %
EMEA 27 27 26
Asia 23 25 22
100% 100% 100 %
The decrease in the percent of revenue from Asia and corresponding increase in the Americas in 2002
compared to 2001 was primarily due to weakness in the Japan economy. The decrease in the Americas in fiscal 2001
compared to 2000 was primarily due to adverse economic conditions, especially in the U.S.
Overall, revenue from our application products on the Windows and Macintosh platforms decreased 4% and
10%, respectively, in fiscal 2002 compared to fiscal 2001. In fiscal 2001 compared to fiscal 2000, revenue from our
application products on the Windows platform increased 9%, and revenue from our application products on the
Macintosh platform decreased 21% during the same period. In fiscal 2002, the Windows and Macintosh platforms
accounted for 71% and 29%, respectively, of application products revenue, excluding platform-independent and
UNIX products, compared to 70% and 30%, respectively, in fiscal 2001, and 63% and 37%, respectively, in fiscal
2000. We expect the trend towards the Windows platform to continue in the foreseeable future.
Cost of revenue
2002 Change 2001 Change 2000
Cost of revenue
Products...................................................... $ 96.
9
19 % $ 81.
5
(
7
)% $ 87.3
Services and support ................................. 7.
4
100
—
—
—
Total cost of revenue ..................................... $ 104.
3
28 % $ 81.
5
(
7
)% $ 87.3
Percentage of total revenue ............................ 9.0% 6.6% 6.9%
Products
Cost of products revenue includes product packaging, third-party royalties, excess and obsolete inventory,
amortization related to localization costs and acquired technologies, hosted server costs, and the costs associated
with the manufacturing of our products.
Cost of products revenue increased in absolute dollars and as a percentage of revenue in fiscal 2002 compared
to fiscal 2001 primarily due to increased amortization of website development costs related to Adobe Design Team
(formerly Adobe Studio) which launched in the fourth quarter of fiscal 2001, and the subsequent impairment charge
for the remaining Adobe Design Team development costs due to the decision to discontinue the Adobe Design Team
service in the third quarter of fiscal 2002.
Cost of products revenue decreased in absolute dollars and as a percentage of revenue in fiscal 2001 compared
to fiscal 2000, primarily due to an 8% decrease in third-party royalties, mainly associated with our PostScript and
Type products revenue, and a 5% decrease in material costs due to decreased product licensing of shrink-wrapped
products. These decreases were offset by a 2% increase in localization costs primarily due to localization for our
Photoshop and Acrobat products, a 2% increase in excess and obsolete inventory expenses, and a 1% increase in
hosted server costs due to the launch of Adobe Design Team (formerly Adobe Studio).