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42
ITEM 6. SELECTED FINANCIAL DATA
The following selected consolidated financial data (presented in thousands, except per share amounts and
employee data) are derived from our consolidated financial statements. This data should be read in conjunction
with the consolidated financial statements and notes thereto, and with Item 7, Management’s Discussion and
Analysis of Financial Condition and Results of Operations. All per share amounts referred to in the table below
have been adjusted to reflect the two-for-one stock split in the form of stock dividends effected May 23, 2005.
Fiscal Years
2006 2005 2004 2003 2002
Operations:
Revenue ..............................................................
.
$ 2,575,300 $ 1,966,321 $ 1,666,581 $ 1,294,749 $ 1,164,788
Gross profit .........................................................
.
2,282,843 1,853,743 1,562,203 1,201,727 1,060,500
Income before income taxes................................
.
679,727 765,776 608,645 380,492 284,689
Net income(*).......................................................
505,809 602,839 450,398 266,344 191,399
Net income per share(*)
Basic................................................................
.
0.85 1.23 0.94 0.57 0.41
Diluted.............................................................
.
0.83 1.19 0.91 0.55 0.40
Cash dividends declared per common share .......
.
— 0.00625 0.025 0.025 0.025
Financial position:
Cash, cash equivalents and short-term
investments .....................................................
.
2,280,879 1,700,834 1,313,221 1,096,533 617,737
Working capital...................................................
.
2,207,122 1,528,183 1,107,142 892,498 436,883
Total assets..........................................................
.
5,962,548 2,440,315 1,958,632 1,555,045 1,051,610
Stockholders’ equity ...........................................
.
5,151,876 1,864,326 1,423,477 1,100,800 674,321
Additional data:
Worldwide employees.........................................
.
6,068 4,285 3,848 3,515 3,319
* In fiscal 2006, net income and net income per share includes the impact of SFAS 123R stock-based compensation charges as well
as the integration of Macromedia into our operations, neither of which were present in prior years. Refer to Notes 2 and 11 of our
Notes to Consolidated Financial Statements.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion (presented in millions) should be read in conjunction with our consolidated
financial statements and notes thereto. The share and per share data below have been adjusted to give effect to
our stock split as of May 23, 2005.
In addition to historical information, this Annual Report on Form 10-K/A contains forward-looking
statements, including statements regarding product plans, future growth and market opportunities, which involve
risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute
to such differences include, but are not limited to, those discussed in the section titled “Business - Risk Factors.”
You should carefully review the risks described herein and in other documents we file from time to time with the
SEC, including the Quarterly Reports on Form 10-Q to be filed in 2007. When used in this report, the words
“expects,” “could,” “would”, “may,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “targets,”
“estimates,” “looks for,” “looks to,” and similar expressions, as well as statements regarding our focus for the
future, are generally intended to identify forward-looking statements. You should not place undue reliance on
these forward-looking statements, which speak only as of the date of this Annual Report on Form 10-K/A. We
undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or
circumstances after the date of this document.
ACQUISITION OF MACROMEDIA
On December 3, 2005, we completed the acquisition of Macromedia for approximately $3.5 billion. We
expect our revenues, cost of revenues and operating expenses to increase in the future, but we also anticipate cost
saving synergies. We incurred restructuring charges of $19.7 million during fiscal 2006. Coinciding with the