Adobe 2005 Annual Report Download - page 5

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5
During fiscal 2005, we also maintained our focus on our digital video products, including Adobe Premiere Pro
software for video editing, Adobe After Effects software for adding special effects to video, Adobe Audition
software for audio editing and Adobe Encore DVD software for DVD creation. In addition to these individual digital
video products, we continued to focus on marketing the Adobe Video Collection which contains these products and
comes in two versions: Standard and Professional.
In the fourth quarter of fiscal 2005, we released version 4.0 of our Adobe Photoshop Elements software, which
is our digital imaging application targeted for amateur photographers and digital imaging hobbyists. In the same
quarter, we released version 2.0 of Adobe Premiere Elements software, which is our video editing software that can
be used by hobbyists to enhance and share their digital video memories on DVDs. In addition, we released a
software bundle that includes the new versions of Photoshop Elements and Adobe Premiere Elements to target
hobbyists who desire both applications in one affordable package.
Intelligent Document Business Summary
In fiscal 2005, we achieved strong year-over-year growth and record revenue in our Intelligent Document
business. Driving this performance was the release of version 7.0 of our Acrobat family of products, which began
shipping in the first quarter of the fiscal year. The updated product family offers enhanced features that allow
workgroups to manage a range of essential business activities such as assembling documents from multiple sources,
creating intelligent forms and more securely collaborating on projects. In addition, the new Acrobat 7.0 family of
products offers new functionality to address specific customer workflow issues in vertical markets such as
architecture, engineering, construction, manufacturing, education, government and financial services. This vertical
market focus helped to significantly increase our penetration of Acrobat desktop licenses.
Our focus on the enterprise software server market targeting the document service needs of governments and
enterprises also drove record revenue in fiscal 2005. Focusing primarily on our targeted vertical markets of financial
services and government, we continued to gain traction in marketing and licensing the capabilities of our Adobe
LiveCycle server products. In addition, we made progress with integration of our document generation technologies
with other software vendors’ platforms, such as those from SAP AG and EMC. As a result, we began generating
revenue based on the inclusion of our technologies within their platforms.
OEM Postscript and Other Business Summary
In fiscal 2005, graphics professionals and professional publishers continued to rely on our Postscript technology
to meet their sophisticated printing requirements. OEM Postscript revenue, generated by licensing our technology to
OEMs that manufacture printers and other output devices, decreased slightly in fiscal 2005 when compared to fiscal
2004. This performance was consistent with our expectations, due to the mature nature of this market.
Fiscal 2006 Business Segments, Products and Market Opportunities
This section provides an overview of our new principal business reporting segments that we began using at the
beginning of fiscal year 2006. For each segment, a discussion of the market opportunities, our strategies and our
products is provided.
Creative Solutions Business Segment
Creative Solutions Market Opportunity
Our Creative Solutions business unit focuses primarily on the needs of the creative customer. This new segment
combines most of the products of our prior Creative Professional and Digital Imaging and Video business units,
along with the creative professional-focused products and solutions that we obtained through our acquisition of
Macromedia.
Over the past twenty years, our core customers have been creative professionals. Graphic designers, production
artists, Web designers, user interface designers, technical writers, videographers, photographers and prepress
professionals who use and rely on Adobe’s solutions for professional publishing, Web design, professional