Adobe 2011 Annual Report Download - page 6

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In the fourth quarter of fiscal 2011, we announced the acquisitions of TypeKit, for making expressive type available anywhere
on the web, and Nitobi, the maker of PhoneGap. Nitobi is the creator and primary contributor to the open source PhoneGap
framework, which allows developers to create device native mobile applications using HTML, CSS, and JavaScript. Both TypeKit
and PhoneGap are planned to be integral parts of our Creative Cloud offering in fiscal 2012, which is discussed later in this section.
Digital Media Solutions Fiscal 2011Business Summary
Entering fiscal 2011, our Digital Media Solutions business, like our Creative and Interactive Solutions business, benefited
from the strength of the CS5 release that occurred in fiscal 2010. In May of 2011, as noted earlier, we delivered CS5.5, the newest
release of our creative toolset which included new versions of our video authoring products. Adoption of the new CS5.5 products
in the second, third and fourth quarters of fiscal 2011, as well as ongoing adoption of our imaging products helped to drive year-
over-year revenue growth in our Digital Media Solutions segment during the entire fiscal year.
Throughout fiscal 2011, we maintained our focus on making Photoshop the standard by which all other imaging products
are measured. As an essential tool in most creative customer's workflow, many of our customers acquire its capabilities through
the purchase of suites of our products, the management of which was handled by our Creative and Interactive Solutions business.
With our Photoshop family of products, including Photoshop Extended, Photoshop, and Photoshop Lightroom, we
experienced year-over-year revenue growth during fiscal 2011. The new release of Lightroom version 3, used by professional and
amateur photographers to manage, enhance and share their photographs, achieved strong adoption in its targeted market.
Similarly, our video authoring tools—including Adobe Premiere Pro, After Effects, Adobe Audition, and the suite containing
them called Creative Suite Production Premium—achieved strong market share and revenue growth during the year due to new
CS5.5 versions of the products and strong execution by our sales and marketing teams to position Adobe as a leader in the overall
digital video solutions category.
During the fourth quarter of fiscal 2011, we released version 10 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 10 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 Photoshop
Elements and Adobe Premiere Elements to target hobbyists who desire both applications in one affordable package. Adoption of
these new releases helped to drive year-over-year revenue growth in this category during the fiscal year.
To capitalize on the increased use of smartphones and tablets, we released versions of applications which run on mobile
devices, including Photoshop Express, which is a popular application and available for free on devices running Google Android
OS and Apple iOS; Adobe Revel (formerly Adobe Carousel), which gives users access to their entire photo library from their
Apple devices along with photo-processing features based on Lightroom; and Photoshop Touch—our newest tablet application
leveraging the brand and capabilities of our popular Photoshop imaging franchise, which was made available for a fee on Android-
based devices in the fall of 2011 and is expected to be released for Apple iOS-based devices in 2012.
In the fourth quarter of fiscal 2011 we announced our acquisition of Auditude, a video ad serving platform that increases
the capabilities of our video product solution to enable our customers to deliver and monetize their media to PC, mobile, tablet
and TV-screens that are connected to the internet. We believe the addition of Auditude strengthens our offering to help customers
monetize their media assets on the web.
Knowledge Worker Fiscal 2011 Business Summary
In fiscal 2011, our Knowledge Worker revenue increased when compared to fiscal 2010 due to strong adoption of our
Acrobat X release that launched in the fourth quarter of fiscal 2010. Helping to drive this performance was the success of our
corporate and volume licensing programs, which allow customers who want to deploy Acrobat to many users to do so through
convenient license acquisition and installation means. In addition, an increase in pricing resulted in an increase in the average
selling price (“ASP”) of Acrobat during the year and helped to drive the revenue growth achieved.
Acrobat X, the tenth major version of our Acrobat family of products, contains new and improved features that improve
user productivity, streamline document reviews, collect data in fillable PDF forms, protect PDF documents and other content, and
share PDF documents with others. The product also extends the value proposition for knowledge workers to communicate and
collaborate more effectively. During the year, we further extended the value of PDF to mobile devices with the release of native
Adobe Reader applications for Android and iOS. We also increased our focus on security to guard against malicious use of PDFs
and Adobe Reader. This focus included the regular release of product updates to address new security threats that were identified
throughout the year, and also increased awareness by our customers to stay more current with the latest release of our products.
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