Adobe 2007 Annual Report Download - page 6

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solution targeted at professional photographers that delivers an efficient, powerful way to import, select, develop and
showcase large volumes of digital images. Combined, Photoshop CS3, Photoshop CS3 Extended Edition and Photoshop
Lightroom achieved strong market adoption and revenue results during the year.
In the dynamic media market, which includes users who require new and advanced digital video and animation
technologies, we continued to focus on driving adoption of our new digital video-based technologies. As part of the CS3
launch, we released new versions of our dynamic media products in the third quarter of fiscal 2007. A key part of this release
was the delivery of our new Adobe Creative Suite Production Premium suite for both Windows and Macintosh platforms. In
addition to various new features and ease-of-use improvements found in each of the new versions of the individual products,
we improved support for output of video for the Flash Player (“FLV”) in our family of digital video products to leverage the
broad, increased adoption of FLV on the Web as a means to deliver compelling video content. These new features, combined
with the enhanced FLV support and increased adoption of our Flash Media Server solution which customers use to stream
FLV over the Web, helped drive record revenue and more than 19% year-over-year growth for our dynamic media business
in fiscal 2007. Looking to continue this momentum, we announced Adobe Flash Media Server 3 in September 2007 and we
expect it will be broadly available in 2008.
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 stand-alone desktop version, we also saw the InDesign ecosystem grow in
fiscal 2007—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. Similarly, in the
Web layout and Web development markets, and in the illustration markets, we achieved strong revenue results driven
respectively by the delivery of new versions of our Adobe Dreamweaver and Adobe Illustrator products. Our success in
these areas contributed to record annual revenue in these product categories.
In the second quarter of fiscal 2007, we acquired Scene7 Inc. (“Scene7”), a leading provider of hosted, on-demand, rich
media delivery services. Scene7 provides businesses an easy-to-use, Web-based system to upload, manage, enhance and
publish dynamic rich content and Scene7 solutions are utilized by many online retailers such as Sears, Macy's, Levi Strauss
& Co., Anthropologie, OTTO UK, Lands’ End and QVC.
During the fourth quarter of fiscal 2007, we released version 6.0 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 4.0 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 2008, 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 solutions that meet the evolving needs of our
customers. To help drive this strategy, we will continue to market the benefits of our Creative Suite family of products while
our engineering teams work on future product versions with a focus on improved integration between our products, as well as
enhanced functionality, and more efficient collaboration and workflow capabilities.
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 users to newer
versions of these products. In addition, we will market the benefits of newer versions of the Creative Suite to existing users to
drive 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, Web layout and
illustration software markets. In page layout, we plan 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