Adobe 2007 Annual Report Download - page 49

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49
In our Creative Solutions segment, we generated strong year-over-year growth based on the release of our new Creative
Suite version 3 family of products. Consisting of six new Creative Suite products and thirteen individual applications, our
Creative Suite 3 product launch during the year was the largest in our 25-year history. In addition, we achieved solid growth
in digital imaging and digital video hobbyist markets with the introduction of new versions of our Adobe Photoshop
Elements and Adobe Premiere Elements products.
In our Knowledge Worker segment, we achieved solid year-over-year growth based on continued adoption of our
Acrobat 8 family of products. We also continued to grow our Acrobat Connect business which provides real-time
collaboration capabilities via the Web utilizing our Adobe Flash Player.
Our Enterprise and Developer segment also achieved solid results in 2007, generating record revenue and gaining broad
market acceptance in the categories of Document Services and RIAs with our LiveCycle and Flex technologies.
Our Mobile and Device business achieved strong year-over-year growth due to the ongoing success we have had
targeting mobile operators, handset manufacturers and consumer electronic device manufactures with our Flash Lite and
Flash Cast technologies.
In our Other segments, revenue decreased slightly compared to fiscal 2006 due primarily to lower revenue associated
with some of our legacy products in our Print and Classic Publishing segment. Our PostScript printing technology, a key part
of our Other segment revenue, generated year-over-year growth.
Revenue
Fiscal
2007
% Change
2007 to 2006
Fiscal
2006
% Change
2006 to 2005
Fiscal
2005
Product................................ $ 3,019.5 22% $ 2,484.7 29 % $ 1,923.3
Percentage of total revenue.............. 96% 96% 98%
Services and support..................... 138.4 53% 90.6 111 % 43.0
Percentage of total revenue.............. 4% 4% 2%
Total revenue......................... $ 3,157.9 $ 2,575.3 $ 1,966.3
In fiscal 2007, we categorized our products into the following segments: Creative Solutions, Knowledge Worker
Solutions, Enterprise and Developer Solutions, Mobile and Device Solutions, and Other. Our Creative Solutions segment
focuses on delivering a complete professional line of integrated tools for a full range of creative and developer tasks to an
extended set of customers. Our Knowledge Worker Solutions segment focuses on the needs of knowledge worker customers,
providing essential applications and services to help them reliably share information and collaborate effectively. This
segment contains revenue generated by the Adobe Acrobat family of products. Our Enterprise and Developer Solutions
segment provides server-based enterprise interaction solutions that automate people-centric processes and contains revenue
generated by our LiveCycle line of products. The Mobile and Device Solutions segment provides solutions that create
compelling experiences through rich content, user interfaces and data services on mobile and non-PC devices such as cellular
phones, consumer devices and Internet connected hand-held devices. Finally, the Other segment contains several of our
products and services which address market opportunities ranging from the diverse publishing needs of technical and
business publishing, to our legacy type and OEM printing businesses, to new strategic opportunities centered around our
Platform Business Unit which works to create our next generation technology platform focused on driving adoption of Adobe
AIR; the Platform business also works to generate OEM revenue from our software downloads which include Adobe Reader
and Adobe Flash Player applications.
We will adjust our reporting segments at the beginning of fiscal 2008 to reflect changes for how we manage our
business as we enter the new fiscal year.
Our services and support revenue is composed of consulting, training, and maintenance and support, primarily related to
the licensing of our enterprise, developer and platform products. Our support revenue also includes technical support and
developer support to partners and developer organizations related to our desktop products. Our maintenance and support
offerings which entitle customers to receive product upgrades and enhancements or technical support, depending on the
offering, is recognized ratably over the term of the arrangement.