Adobe 2006 Annual Report Download - page 7

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7
In addition to licensing our technologies as bundles or as suites during fiscal 2006, we also continued to focus
on adoption of our standalone products such as Adobe After Effects Professional, Adobe InDesign, Adobe
Illustrator, Adobe Photoshop, Adobe Premiere Pro, Macromedia Dreamweaver, and Macromedia Flash.
In the professional page layout market, we continued to drive market share gains during the year with our
Adobe InDesign product. In addition to success with the standalone desktop version, we also saw the InDesign
ecosystem grow in fiscal 2006 – our software and systems integrator partners successfully deployed new
innovative workflow solutions based on InDesign and InDesign Server within enterprise-class newspaper,
magazine and book publishing systems. Our success in these areas contributed to a second consecutive year of
record revenue in this product category.
We also maintained our focus during the year on meeting the digital imaging and video software needs of
professional photographers, professional videographers, business users and hobbyists. Adobe Photoshop is an
essential tool in these customers’ workflows, and they rely on Adobe’s digital imaging and video editing solutions
to create and enhance many of the pictures and video we see everyday in print, on television, in movies and on the
Web.
In the first quarter of fiscal 2006, we released a new beta version of Adobe Photoshop Lightroom. Photoshop
Lightroom is an all-new digital imaging solution targeted at professional photographers that delivers an efficient,
powerful way to import, select, develop and showcase large volumes of digital images.
In addition, during the fourth quarter of fiscal 2006, we released version 5.0 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 3.0 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. We also released a software bundle that includes the new versions of Adobe Photoshop Elements and
Adobe Premiere Elements to target hobbyists who desire both applications in one affordable package. These new
hobbyist product releases helped to generate record revenue in this product category during the year, and
contributed year-over-year revenue growth to our overall creative business.
Creative Solutions Business Strategy
In fiscal 2007, our Creative Solutions strategy will continue to focus on driving revenue growth and
increasing market share of our products through the delivery of comprehensive software platforms that meet the
evolving needs of our customers. To help drive this strategy, we plan to deliver Creative Suite version 3, which
will contain improved integration of our Creative Solutions products to enhance product functionality and to
enable more efficient collaboration and workflows.
In addition, the creation and enhancement of digital video and motion graphics by creative professionals, and
opportunities to improve user workflow and the delivery of this content to the Web and to mobile and other non-
PC related devices, represent an emerging opportunity we intend to address as part of our Creative Solution
offerings.
We believe that, while many customers have made or will make the switch to our Creative Suite products
from individual applications over time, there continues to exist an opportunity of upgrading existing individual
application users to newer versions of these individual applications. In addition, we will market the benefits of
newer versions of the Creative Suite to existing Creative Suite and Macromedia Studio users to drive Creative
Suite to Creative Suite and Studio to Creative Suite upgrades. We also will market the features of these products
to new users of creative applications – those who aspire to be creative professionals, or those at home or at work
who wish to use the professional-level capabilities of our solutions, but are not trained creative professionals.
We intend to continue our efforts to be the recognized market leader in the professional page layout and Web
layout software markets. In page layout, we intend to continue to add new features to our InDesign product, as
well as continue to enhance its integration with other products print professionals utilize in their workflows. In
Web layout, we strive to continue to redefine the Web experience by offering the most feature-rich, market-
leading solutions for Website design and development with our Dreamweaver and Flash offerings.