Adobe 2006 Annual Report Download - page 12

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12
We also believe businesses will increasingly utilize Web conferencing to improve how they train, market, sell,
and support their products and solutions to their customers.
We have recently announced and released a new product called Adobe Acrobat Connect, which was formerly
known as Macromedia Breeze. Acrobat Connect provides capabilities via the Adobe Flash Player for live Web
conferencing, as well as delivering on-demand rich presentations. By integrating accessibility to the functionality
of Acrobat Connect from Acrobat and the free Adobe Reader, we believe we can extend adoption of Web
conferencing to a broader potential market and grow the use of such technology with an easy-to-adopt business
model.
Knowledge Worker Solutions Business Summary
Our Knowledge Worker business achieved solid year-over-year growth and record revenue in fiscal 2006.
The largest component of our Knowledge Worker business was revenue generated by our Acrobat family of
products. In fiscal 2006, success in this business was driven by continued adoption of Adobe Acrobat version 7.0
throughout the year, as well as the launch of Adobe Acrobat version 8 which began shipping in the later part of
our fourth quarter and helped to achieve record quarterly revenue in the fourth quarter for this business.
The updated version 8 product family offers enhanced features that allow workgroups to manage a range of
essential business activities such as assembling documents from multiple sources, controlling security and access
to sensitive information, enabling the creation and filling out of intelligent electronic forms, and more effectively
collaborating on documents and projects. In addition, the new Acrobat 8 family of products provides a new user
interface and additional functionality to address specific customer workflow issues in vertical markets such as
architecture, engineering, construction, manufacturing, education, government and financial services. These
enhanced capabilities helped to continue the increase of our penetration of Acrobat desktop licenses in
enterprises, thereby helping our business to grow.
To supplement our vertical market focus with Acrobat, we also shipped a new product called Adobe Acrobat
3D in our first quarter of fiscal 2006. Acrobat 3D extends document-based three dimensional (“3D”) design
collaboration capabilities to virtually anyone in the design supply chain – from engineers to manufacturers.
Acrobat 3D utilizes Adobe PDF as a cross-platform standard to share complex 2D and 3D content without the
need for using proprietary viewing technology for recipients receiving such content.
Over the course of fiscal 2006, we also focused on the Web conferencing market opportunity with our
Macromedia Breeze product line, which is licensed by customers as server-based software, or licensed as a hosted
service that we provide. This business model focuses on charging meeting organizers for the ability to host
meetings, and allows for participants to join meetings for free utilizing the ubiquitous Adobe Flash player. With
the release of Acrobat version 8, we re-launched Macromedia Breeze as Adobe Acrobat Connect and integrated
the ability to start an online Web conference from within the new Acrobat family of products, as well as through
the new version (free) of Adobe Reader.
Finally, as a supplement to our knowledge worker desktop products, we introduced a new hosted service that
provides the ability to protect and secure PDF documents for a monthly fee.
Knowledge Worker Solutions Business Strategy
In fiscal 2007, we plan to continue to market the benefits of our Knowledge Worker solutions to small and
medium-sized businesses, large enterprises, and government institutions around the world. With our Acrobat
family of products, we intend to continue to increase our seat penetration in these markets through the utilization
of our corporate and volume licensing programs. We also intend to increase our focus on marketing and licensing
Acrobat in vertical markets such as education, financial services, telecommunications, government,
manufacturing, and the architecture, engineering, and construction markets.