Adobe Systems’ financial results for its third quarter reached US$487 million down slightly sequentially but up 21 per cent year on year as Creative Suite sales kick in.
The company expects the good times to roll on with fourth quarter guidance suggesting 14 to 19 per cent year-over-year growth and a gross margin of approximately 94 percent (operating margin of 35 to 36 per cent).
With the Macromedia acquisition now approved by Adobe shareholders and the transaction expected to close this quarter, Adobe says the integration process is on track subject to regulatory approvals and the satisfaction of ‘other closing conditions’. Adobe is maintaining a Website as an ongoing source of information regarding the Macromedia acquisition.
“Solid execution drove another outstanding quarter of double digit growth in Q3,” said Bruce Chizen, Adobe chief executive officer. “These results reflect the overall strength of our business which, when combined with our pending acquisition of Macromedia, will position us for even greater success in the future.”
GAAP net income was US$144.9 million for the third quarter of fiscal 2005, compared to US$104.5 the year prior.
GAAP diluted earnings per share for the third quarter of fiscal 2005 were US$0.29 based on 507.8 million weighted average shares. This compares with GAAP diluted earnings per share of US$0.21 reported in the third quarter of fiscal 2004, based on 494.2 million weighted average shares, and GAAP diluted earnings per share of US$0.29 reported in the second quarter of fiscal 2005, based on 508.2 million weighted average shares.
Adobe’s GAAP and non-GAAP operating income was US$183.6 million in the third quarter of fiscal 2005, compared to US$140.3 million in the third quarter of fiscal 2004 and US$182.2 million in the second quarter of fiscal 2005. On a year-over-year basis, this represents 31 percent GAAP and non-GAAP operating income growth. As a percent of revenue, GAAP and non-GAAP operating income in the third quarter of fiscal 2005 were 37.7 percent, compared to 34.8 percent in the third quarter of fiscal 2004 and 36.7 percent in the second quarter of fiscal 2005.
Condensed Consolidated Statements of Income (PDF: 46k)
Condensed Consolidated Balance Sheets (PDF: 30k)
Condensed Consolidated Statements Of Cash Flows (PDF: 30k)
Non-GAAP Results (PDF: 32k)