Adobe 2004 Annual Report Download - page 35

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35
Fiscal
2004
% Change
2004 to 2003
Fiscal
2003
% Change
2003 to 2002 Fiscal
2002
Digital Imaging and Video........ $ 430.2 10 % $ 392.4 (5)% $ 411.9
Percentage of total revenues.. 26% 30% 35%
Creative Professional................. 613.1 66 % 368.5 5 % 351.3
Percentage of total revenues.. 37% 29% 30%
Intelligent Documents ............... 541.8 22 % 444.1 42 % 312.6
Percentage of total revenues.. 32% 34% 27%
OEM PostScript and Other........ 81.5 (9)% 89.7 1 % 89.0
Percentage of total revenues.. 5% 7% 8%
Total revenues ....................... $ 1,666.6 29 % $ 1,294.7 11% $ 1,164.8
Fiscal 2004 Revenue Compared to Fiscal 2003 Revenue
Revenue from our Digital Imaging and Video segment increased during fiscal 2004 as compared to fiscal 2003
due to increases in revenues from both our digital video and digital imaging software products. Revenue from our
digital video software products increased 9% during fiscal 2004 which was attributable to new releases during fiscal
2004. Revenue from our digital imaging software products increased 10% during fiscal 2004 due to continued
success with Adobe Photoshop CS which was released at the end of fiscal 2003 as well as the release of Photoshop
Elements 3.0 in fiscal 2004.
Revenue from our Creative Professional segment increased during fiscal 2004 as compared to fiscal 2003
primarily due to the continued strength of our Adobe Creative Suite products which were initially released in the
fourth quarter of fiscal 2003. The increase in revenues from our Adobe Creative Suite products were partially offset
by decreases in revenues in our business and technical page layout software products due to product lifecycle
timing.
Revenue from our Intelligent Documents segment increased during fiscal 2004 as compared to fiscal 2003
primarily due to a 17% increase in revenues from our Acrobat desktop products as a result of continued adoption of
Acrobat desktop products launched in fiscal 2003. Additionally, revenue from our Intelligent Documents server-
based products increased 50% due to increased licensing and server support revenue.
Revenue from our OEM PostScript and Other segment decreased during fiscal 2004 as compared to fiscal 2003
due to a decline in pricing resulting from competition from clone PostScript technologies and lower prices of output
devices. Revenue from this segment has declined over the last few years and we expect this trend to continue, but if
the decline significantly exceeds our expectations, it may harm our future results.
Fiscal 2003 Revenue Compared to Fiscal 2002 Revenue
Revenue from our Digital Imaging and Video segment decreased during fiscal 2003 as compared to fiscal 2002
primarily due to a decrease in revenues from our digital imaging software products. Overall, we experienced a 7%
decrease in revenues from our digital imaging software products, which was mainly attributable to product lifecycle
timing. With the introduction of Adobe Creative Suite, which includes Photoshop, we experienced a shift in revenue
from Photoshop to the Adobe Creative Suite which is reported in the Creative Professional segment. The 7%
decrease in revenues from our digital imaging software products was partially offset by an 8% increase in revenues
from our digital video software products. The increase in revenues from our digital video software products was due
primarily to new releases of Adobe Video Collection.
Revenue from our Creative Professional segment increased during fiscal 2003 as compared to fiscal 2002
primarily due to a 57% increase in revenues from the release of new products during fiscal 2003, including the
introduction of Adobe Creative Suite, as well as our professional page layout products. This increase was partially
offset by decreases in revenues from our other products in the Creative Professional segment. Revenues from our
business publishing products decreased 26% due to the planned migration of customers to our professional page
layout products. Finally, revenues from our illustration, type and technical publishing, and Web publishing products
decreased by 15%, which was primarily attributable to product lifecycle timing.