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Adobe to Outline Business Strategy and Outlook for Growth at Financial Analyst Meeting Today

^{Published on 2010-10-27 05:40:34 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Adobe Systems Incorporated (Nasdaq:ADBE) will host its annual Financial Analyst Meeting with the financial community today in Los Angeles, CA. The meeting will be broadcast live in Adobe Connect from Adobea™s website ([ http://www.adobe.com/go/analystmeeting ]) beginning at 11:00 a.m. Eastern Time. For those unable to attend the meeting or watch the Webcast, an archive of the event will be available on Adobea™s investor relations website for a limited time.

"Our solutions are empowering individuals and enterprises to create, manage, deliver, and optimize digital experiences across devices and operating systems, and our growth this year and outlook for next year are a reflection of this massive opportunity"

At the meeting, senior executives will outline macro trends that are driving the companya™s fastest growing market segments, and the technology solutions and business strategies that will drive growth for Adobe. The macro trends include the multiscreen explosion, which is dramatically transforming how content is created, distributed and consumed; data-driven marketing, which is increasingly critical to enterprises as they seek to optimize online performance and gather customer insights; and the rise of the digital enterprise, where companies and governments are rapidly moving customer-facing processes online.

aOur solutions are empowering individuals and enterprises to create, manage, deliver, and optimize digital experiences across devices and operating systems, and our growth this year and outlook for next year are a reflection of this massive opportunity,a said Shantanu Narayen, Adobe president and CEO.

Adobe Provides Financial Targets

Adobe announced today it is targeting 10 percent revenue growth in fiscal year 2011.

The company also provided an intra-quarter business update for its fourth quarter ending Dec. 3, 2010. With approximately five weeks remaining in the quarter, Adobe announced it believes it will achieve quarterly results within the revenue and earnings target ranges it provided on Sept. 21, 2010. The Companya™s Q4 target ranges are the following: revenue of $950 million to $1 billion, GAAP diluted earnings per share of $0.35 to $0.41, non-GAAP diluted earnings per share of $0.48 to $0.54, a GAAP operating margin of 27 to 30 percent, and a non-GAAP operating margin of 37 to 38 percent.

A reconciliation between the Companya™s GAAP and non-GAAP financial targets is provided at the end of this press release. The fourth quarter financial targets do not include the impact of Adobea™s acquisition of Day Software announced July 27, 2010, which is expected to close tomorrow, Oct. 28, 2010. Adobe plans to report its fourth quarter results on Dec. 20, 2010 after the market closes.

Forward-Looking Statements Disclosure

This press release contains forward-looking statements, including those related to revenue, operating margin, earnings per share and a pending acquisition, which involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: adverse changes in general economic or political conditions in any of the major countries in which Adobe does business, failure to develop, market and distribute new products or upgrades to existing products that meet customer requirements, introduction of new products and business models by existing and new competitors, failure to successfully manage transitions to new business models and markets, difficulty in predicting revenue from new businesses, costs related to intellectual property acquisitions, disputes and litigation, inability to protect Adobea™s intellectual property from third-party infringers, or unauthorized use, disclosure or malicious attack, failure to realize the anticipated benefits of past or future acquisitions and difficulty in integrating such acquisitions, failure to manage Adobea™s sales and distribution channels effectively, disruption of Adobea™s business due to catastrophic events, risks associated with international operations, fluctuations in foreign currency exchange rates, changes in, or interpretations of, accounting principles, impairment of Adobea™s goodwill or intangible assets, changes in, or interpretations of, tax rules and regulations, Adobea™s inability to attract and retain key personnel, impairment of Adobea™s investment portfolio due to deterioration of the capital markets, market risks associated with Adobea™s equity investments, and interruptions or terminations in Adobea™s relationships with turnkey assemblers. For further discussion of these and other risks and uncertainties, individuals should refer to Adobea™s SEC filings.

The financial information set forth in this press release reflects estimates based on information available at this time. Adobe does not undertake an obligation to update forward-looking statements.

About Adobe Systems Incorporated

Adobe is changing the world through digital experiences. For more information, visit [ www.adobe.com ].

© 2010 Adobe Systems Incorporated. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.

Adobe continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Adobe uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Adobea™s management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adobe presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Adobea™s operating results in a manner that focuses on what Adobe believes to be its ongoing business operations. Adobea™s management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes the stock-based and deferred compensation expenses, restructuring charges, amortization of purchased intangibles, and the related tax impact of all of these items, the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes, and the non-GAAP measures that exclude such information in order to assess the performance of Adobea™s business and for planning and forecasting in subsequent periods. Whenever Adobe uses such a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed above.