Adobe 2012 Annual Report Download - page 9

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to innovate with DPS, leveraging new innovations in CS6 products such as Adobe InDesign, to help customers accelerate app
delivery to their readers through app stores. In the Fall of 2012, we delivered an update to our Digital Publishing Single Edition
solution and made it generally available to all Creative Cloud subscribers. This significantly broadened the use of our solution
beyond mainstream publishers.
We drive our DPS revenue through the licensing of software that customers use to create and publish their apps. In addition,
with our Enterprise version, we obtain revenue for each digital edition that is downloaded and delivered through our content
delivery infrastructure. As of the end of fiscal 2012, we have over 1,450 DPS customers, reflecting the success and strong adoption
of our solution. In addition, on average we deliver approximately 163,000 digital issues every day to users of iPads, Kindles and
Android tablets, with more than 53 million digital editions delivered since March of 2011.
In the professional digital imaging market, we released new versions of Adobe Photoshop CS6, Adobe Photoshop CS6
Extended and Adobe Lightroom 4 during fiscal 2012. Ground-breaking features in Photoshop included new Content-Aware
technologies, enhancements in image effects such as Blur Gallery and performance improvements based on updates to the Adobe
Mercury Graphics Engine. Lightroom enhancements included refined technology for superior shadow and highlight processing,
expanded management capabilities including enhanced DSLR video support and the ability to create photo books. To drive increased
adoption of Lightroom, we also lowered the price of the product, which resulted in substantial unit and revenue growth during the
year when compared to fiscal 2011.
With our professional digital video authoring and content creation solutions, including Adobe Premiere Pro and After Effects,
we continued to achieve strong market share and revenue growth during the year due to new CS6 product versions 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 2012, we released version 11 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 11 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 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.
To help our customers create new content leveraging advancements in web standards, we deliver the Edge Tools & Services,
which included Edge Animate, in the fall of 2012. Edge Animate is our new web motion and interaction design tool that allows
designers to bring animated content to websites, using web standards like HTML5, JavaScript, and CSS3. We also delivered Adobe
Muse, which enables designers to design and publish HTML websites without writing HTML code. Combined, we believe the
customer adoption of these new tools as well as positive customer reactions to innovations we added to our existing web content
creation tools such as Adobe Dreamweaver CS6, has caused the web community to embrace Adobe as a leading provider of HTML
solutions for web content creation.
During fiscal 2012, we advanced the capabilities of our Adobe Flash Player with several new releases. Flash Player is a
cross-platform, browser-based application runtime that provides viewing of expressive applications, content, and videos across
most browsers and PC operating systems. Key features that are driving adoption of Flash in markets such as gaming and premium
video delivery include 3D accelerated graphics support, native 64-bit operating system support, improved software encoding for
cameras and protected HTTP dynamic streaming. Adoption of Flash Player remained strong on PC platforms during fiscal 2012.
Due to the frequent downloads of our client technologies such as Flash Player, we generate revenue through OEM relationships
with companies where we include their technologies as part of the download offerings of our client technologies on PCs. In fiscal
2012, this download revenue grew when compared to fiscal 2011.
In fiscal 2012, we also broadened the reach of Adobe AIR, our cross-platform client technology. The AIR runtime enables
developers to deploy standalone applications built with HTML, JavaScript, ActionScript, Flex, Flash Professional, and Adobe
Flash Builder across platforms and devices—including Android, iOS devices, personal computers and televisions.
To capitalize on the increased use of smartphones and tablets, we released updates of our tablet applications which run on
mobile devices, including Photoshop Touch, which is a popular application and available on devices running Google Android OS
and Apple iOS. In addition, Adobe Revel provides users access to their entire photo library from their Apple devices, along with
photo-processing features based on Lightroom. Both Photoshop Touch and Revel received positive reviews and achieved strong
revenue growth during the year.
In the Document Services market, we achieved solid year-over-year growth during fiscal 2012. This performance was driven
by continued, solid adoption of our Acrobat X release that initially launched in the fourth quarter of fiscal 2010. In the fourth
quarter of fiscal 2012, we released Acrobat XI, the eleventh major version of our Acrobat family of products. Acrobat XI, the
industry standard for PDF software, contains new and improved capabilities that feature complete PDF editing and export to
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