Adobe 2009 Annual Report Download - page 57

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57
In our Platform segment, revenue declined 22% on a year-over-year basis primarily due to the impact of the OSP. The
removal of license fees associated with our Flash technologies on mobile devices commenced in fiscal 2009, and as such,
OEM revenue from device manufacturers began to decline from rates of revenue we achieved in fiscal 2008. We continue to
expect this decline to be offset over time by an increased demand for tooling products, server technologies, services and
applications in many of our other business segments.
In our Print and Publishing segment, revenue was also impacted by the global macroeconomic environment, resulting in
a 16% year-over-year decline.
The Omniture business appeared to stabilize during the fourth quarter with the improvement in the general economy, as
indicated by an increase in the transaction volume on our network. In addition, customer retention rates began stabilizing and
we experienced an increase in the number of subscription services provided to our existing customers.
Revenue (dollars in millions)
Fiscal
2009
% Change
2009 to 2008
Fiscal
2008
% Change
2008 to 2007
Fiscal
2007
Product .................................
$
2,759.4
(19
)%
$
3,396.5
12
%
$
3,019.5
Percentage of total revenue ...............
94
%
95
%
96
%
Services and support ......................
186.5
2
%
183.4
33
%
138.4
Percentage of total revenue ...............
6
%
5
%
4
%
Total revenue ..........................
$
2,945.9
(18
)%
$
3,579.9
13
%
$
3,157.9
In fiscal 2009, we categorized our products into the following segments: Creative Solutions, Knowledge Worker,
Enterprise, Platform, Print and Publishing and Omniture 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 Platform segment provides developer solutions and technologies, including
Adobe Flash Player, Adobe AIR and Flash Builder which are used to build rich application experiences in addition to
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. The Print and Publishing
segment addresses market opportunities ranging from the diverse publishing needs of technical and business publishing, to
our legacy type and OEM printing businesses. Finally, our Omniture segment provides Web analytics and online business
optimization products and services.
We will adjust our reporting segments at the beginning of fiscal 2010 to reflect changes in how we manage our business
as we enter the new fiscal year. Specifically, we are moving responsibility for our Adobe Connect Pro product line from our
Knowledge Worker segment to our Enterprise segment.
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, are recognized ratably over the term of the arrangement.