Adobe 2007 Annual Report Download - page 28

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28
OPERATIONS
Marketing and Sales
We market and distribute our products through sales channels, which include distributors, retailers, software developers,
systems integrators, ISVs and VARs, as well as through OEM and hardware bundle customers. We also market and license
our products directly using our sales force and through our own Web site at www.adobe.com.
We support our worldwide distribution network and end user customers with international offices around the world,
including locations in Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Denmark, England, Finland,
France, Germany, India, Ireland, Italy, Japan, Korea, Mexico, the Netherlands, Norway, Poland, Portugal, Romania, Russia,
Scotland, Singapore, Spain, Sweden, Switzerland and Taiwan.
We also license software with maintenance and support, which includes rights to upgrades, when and if available,
support, updates and enhancements.
Receivables from our significant distributors, as a percentage of gross trade receivables for fiscal 2007 and 2006 are as
follows:
2007 2006
Ingram Micro................................................. 19 % 25 %
Tech Data.................................................... 10 % 11 %
Order Fulfillment for Physical Distribution
The procurement of the various components of packaged products, including CDs and printed materials, and the
assembly of packages for retail and other applications products is controlled by our Global Supply Chain Management
operations. We outsource our order fulfillment activities to third parties in the United States, Europe and Asia.
To date, we have not experienced significant difficulties in obtaining raw materials for the manufacture of our products
or in the replication of CDs, printing and assembly of components. The backlog of orders from customers, as of January 18,
2008, and January 19, 2007, was approximately $13.8 million and $15.1 million, respectively.
Services and Support
We provide professional services, technical support and customer service to a wide variety of customers including
consumers, creative professionals and business users. Our service and support revenue consists primarily of consulting fees,
software maintenance and support fees and training fees.
Services
We have a global Adobe Consulting team dedicated to developing and implementing solutions for enterprise customers
in key vertical markets and to transfer technical expertise to our solution partners. The Adobe Consulting team uses a
comprehensive, customer-focused methodology to develop high quality solutions, which in turn deliver a competitive
advantage to our enterprise customers. A portfolio of technical training courses is also available for desktop and server-based
products to meet the needs of our enterprise customers and solution partners.
Support
A significant portion of our support revenue is composed of our extended enterprise maintenance and support offerings,
which entitles customers to the right to receive product upgrades and enhancements during the term of the maintenance and
support period, which is typically one year. Regional Support Centers are charged with providing timely, high quality
technical expertise on Enterprise and Knowledge Worker Solutions products and solutions to meet the growing needs of our
customers.