The release of Creative Suite 3 drove Adobe's quarterly net profit up in the company's second quarter.
Adobe reported its second quarter results last night, revealing record revenue of $745.6 million, up $110.1 million from the $635.5 million the company returned in the year-ago quarter.
Adobe shipped the first tranche of its much-anticipated Creative Suite 3 products within the period. While the company didn't disclose sales, it's clear that pent-up demand has driven adoption of the new creative applications.
Company CEO Bruce Chizen observed: “This was a strong quarter, driven by the record performance of both our Creative Suite products and Acrobat."
Despite the positive results, Adobe stock fell slightly as investors had hoped for an even stronger performance from the firm.
Speaking during a conference call with investors, Chizen observed: "Keep in mind, we have only been shipping Creative Suite for six weeks. We are ecstatic. We do expect to exceed the full year forecast."
Adobe chief operating officer Shantanu Narayen told analysts that CS3 sales in the six weeks since launch are 30 per cent higher than those of CS2 during its first six weeks on the market.
The company has faced some criticism for the prices it charges for its products in different territories - in the UK, the software costs some 30 per cent more than in the US, for example.
Adobe’s GAAP diluted earnings per share for the second quarter of fiscal 2007 were $0.25, while GAAP operating income reached $180.4 million in the second quarter of fiscal 2007, compared to $147.9 million in the second quarter of fiscal 2006 and $146.3 million in the first quarter of fiscal 2007.
As a percent of revenue, GAAP operating income in the second quarter of fiscal 2007 was 24.2 per cent, compared to 23.3 per cent in the second quarter of fiscal 2006. (Non-GAAP operating income was $282.1 million). GAAP net income was $152.5 million for the quarter.
For the third quarter of fiscal 2007, Adobe is aiming for revenue in the range of $760 million to $800 million.