Adobe 2009 Annual Report Download - page 31

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31
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, Dubai, Finland, France,
Germany, India, Ireland, Italy, Japan, Korea, Mexico, Moldova, the Netherlands, Norway, Poland, Portugal, Romania,
Russia, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Turkey and the United Kingdom.
We also license software with maintenance and support, which includes rights to upgrades, when and if available,
support, updates and enhancements.
The table below lists our significant customers, as a percentage of net revenue for fiscal 2009, 2008 and 2007. As listed,
our significant customers are distributors who sell products across our various segments.
2009
2008
2007
Ingram Micro ..................................................
15
%
18
%
21
%
Tech Data .....................................................
8
%
9
%
10
%
We have multiple non-exclusive, independently negotiated distribution agreements with Ingram Micro and Tech Data
and their subsidiaries covering our arrangements in specified countries and regions. Each of these contracts has an
independent duration, is independent of any other agreement (such as a master distribution agreement) and any termination of
one agreement does not affect the status of any of the other agreements.
Receivables from our significant distributors, as a percentage of gross trade receivables for fiscal 2009 and 2008 were as
follows:
2009
2008
Ingram Micro ..............................................................
16
%
18
%
Tech Data ..................................................................
6
%
8
%
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 Supply Chain Operations organization.
We outsource our production, inventory and fulfillment activities to third parties in the United States, Europe, Asia and
Japan.
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 is comprised of unfulfilled orders, excluding those associated with new product
releases, those pending credit review and those not shipped due to the application of our global inventory policy. The backlog
of orders from customers, as of January 15, 2010 and January 16, 2009, were approximately $5.4 million and $6.4 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 Professional Services team dedicated to developing and implementing solutions for enterprise
customers in key vertical markets and to transfer technical expertise to our solution partners. The Professional Services 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 products and solutions to meet the growing needs of our customers.