08 Earnings Call transcript

awesome day, many people. Welcome to the Adobe fourth quarter and fiscal year 2008 earnings conference call. once again, Today’s call is being shown. At this time I need to turn the call over to Mr. robert Saviage, vice chairman of Investor Relations. Please don’t wait, friend.

Good afternoon and thanks for joining us today. Joining me on the call are Adobe’s lead designer and CEO, Shantanu Narayen, along with Mark Garrett, Executive vp and CFO.

In the simple, We’ll discuss Adobe’s fourth quarter and fiscal year 2008 lending results. at this point, you’ll have a copy of our earnings press release, Which crossed the wire no more than one hour ago.

Before we get cracking, I want to emphasize that some of the feedback discussed in this call, chiefly our revenue and operating mile targets and our forward looking product plans, uses information as of today, December 16, 2008, And contains forward looking statements that entail risk and uncertainty. Actual results may differ materially from those set forth in such records. For a discussion of these risks and concerns, You should review the forward looking statements disclosure in the earnings report we issued today, additionally Adobe’s SEC filings.

during this call, We will discuss GAAP and non GAAP stock measures. A reconciliation between the two comes in our earnings release and on our investor relations website.

Call participants are advised that the audio of this conference call is being broadcast live online in Acrobat Connect Pro and is also being recorded for playback purposes. An archive of the call will be made available in Acrobat Connect Pro under Adobe’s investor relations website for as much as 45 days and is the property of Adobe Systems. The audio and archive may not be re recorded or even reproduced or distributed without prior written permission from Adobe Systems.

I can turn the call over to Shantanu.

gives thanks, Mike and good day. Today we are revealing fourth quarter revenue of $915.3 million, And annual cash flow of $3.58 thousand. Despite a difficult economic environment in 2008, We was able to achieve record revenue and double digit growth for the sixth consecutive year.

Looking at 2008 as a whole, And knowing now that we were in the course of a recession that spanned our entire fiscal year, It is clear that we executed well and achieved some notable results.

First, Our fun business had a solid year, As we delivered the largest and most innovative product release in Adobe’s history with CS4. We grew our leadership position in the creative tools market and diversified by putting together growth businesses in the areas of dynamic media with Flash based video and hosted services with our Scene 7 business.

In business return solutions, Acrobat had an efficient year, With double digit revenue growth and the launch of Acrobat 9. Our LiveCycle project business had a great year, Achieving higher than a quarter of a billion dollars in revenue with 32% annual growth.

We established the Adobe Flash platform as a normal for how the world engages with ideas and information across platforms, phones, And operating systems. Our ubiquitous client techniques, incorporating Flash player, Air, And Reader uniquely position Adobe as a technology leader in a world when the explosion of rich digital content is accelerating.

These success helped us to meet our goal of 13% revenue growth in fiscal 2008 and our operational focus allowed us to greatly exceed our profit targets for the year. In an hour, I will comment on Q4 highlights in more detail but first I will turn it over to Mark for an assessment our financial results.

this is due, Shantanu. I will first inquire into our full year fiscal 2008 results. Adobe done record revenue of $3.580 billion throughout the year compared to $3.158 billion dollars in fiscal 2007. This represents 13% year over year revenue growth, Consistent with the target we provided first of the year. GAAP utilizing income in fiscal 2008 was $1.028 billion dollars, considered with $858 million in fiscal 2007. GAAP going margin for the year was 28.7% as opposed to 27.2% in financial 2007. Non GAAP undertaking income in fiscal 2008 was $1.435 million, within $1.209 thousand in fiscal 2007, And representing 19% annually growth.

Our non GAAP maintaining margin was 40.1% in monetary 2008, when compared with 38.3% in financial 2007, And outperforming our original target for the year.

Adobe’s annual GAAP net income was $872 million in fiscal 2008 rather than $724 million in fiscal 2007. Adobe’s annual non GAAP net income was $1.136 billion in fiscal 2008 compared to $966 million in fiscal 2007. GAAP diluted earnings per be part of fiscal 2008 were $1.59 considered with $1.21 in economic 2007. Non GAAP diluted source of income per share were $2.07 in fiscal 2008 in comparison $1.61 in monetary 2007.

perusing our businesses in fiscal 2008, We achieved revenue increase in every segment. Our Creative s

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