Adobe 2008 Annual Report Download - page 50

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50
In our Creative Solutions segment, revenue increased by nine percent during fiscal 2008 as compared to fiscal 2007,
based on continued adoption of our CS3 family of products during the first three quarters of fiscal 2008, as well as the release
of our new CS4 family of products which began shipping in the fourth quarter of the year. Consisting of six Creative Suite
editions and thirteen individual creative products, our CS4 family of products launch was the largest in our more than 25-year
history. Although reviews and market commentary about our new CS4 family of products were overwhelmingly positive, we
believe revenue from the fourth quarter launch was significantly impacted by the global financial crisis that is affecting
demand in the creative professional end user market.
Helping to drive the growth we achieved in our Creative Solutions business was a thirteen percent growth with our
professional digital imaging products during fiscal 2008 as compared to fiscal 2007. In addition, we achieved strong growth
in our Scene7 business. Revenue increased by more than twenty percent with our digital imaging and digital video hobbyist
markets with the introduction of new versions of our Adobe Photoshop Elements and Adobe Premiere Elements products
during the fourth quarter.
Business Productivity Solutions achieved greater than fifteen percent increase in revenue during fiscal 2008 as
compared to fiscal 2007. This success was driven by continued adoption of our Acrobat 8 family of products, as well as
adoption of its successor, Acrobat 9, which was released in the third quarter of the fiscal year. In addition, our execution in
driving our enterprise business with our LiveCycle product family resulted in more than a thirty percent increase in revenue
in this business during fiscal 2008 as compared to fiscal 2007, with revenue exceeding $250 million. We also continued to
grow our Acrobat Connect Pro business which provides real-time collaboration capabilities via the Web utilizing our Adobe
Flash Player.
Our Mobile and Device Solutions segment achieved greater than 100% growth during fiscal 2008 as compared to fiscal
2007, due to the ongoing success we have had targeting mobile operators, handset manufacturers and consumer electronic
device manufactures with our Flash Lite technology. On May 1, 2008, we announced the Open Screen Project. The project
aims to enable a consistent runtime environment that will remove barriers for developers and designers as they publish
content and applications across desktops and consumer devices, including phones, mobile Internet devices (“MIDs”) and set
top boxes. As part of the project, we will be removing some restrictions on the use of some of our technology specifications
and publishing several technology protocols. We will also be removing the license fees on the next major releases of Adobe
Flash Player and Adobe AIR for devices. Accordingly, we expect revenue from Mobile and Device Solutions to decrease
beginning in the first quarter of fiscal 2009. We would expect this decrease to be offset in time by an increased demand for
tooling products, server technologies, services and applications.
In our other segments, revenue increased by fifteen percent compared to fiscal 2007 due primarily to higher revenue
with our Platform business and the sustaining of revenue in our legacy Print and Publishing business.
Revenue
Fiscal
2008
% Change
2008 to 2007
Fiscal
2007
% Change
2007 to 2006
Fiscal
2006
Product ................................
$
3,396.5
12
%
$
3,019.5
22
%
$
2,484.7
Percentage of total revenue ..............
95
%
96
%
96
%
Services and support .....................
183.4
33
%
138.4
53
%
90.6
Percentage of total revenue ..............
5
%
4
%
4
%
Total revenue .........................
$
3,579.9
13
%
$
3,157.9
23
%
$
2,575.3
In fiscal 2008, we categorized our products into the following segments: Creative Solutions, Knowledge Worker,
Enterprise, Mobile and Device Solutions, Platform and Print and Publishing products.
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 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
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