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Adobe Systems Inc ADBE
Q3 2010 Earnings Call Transcript

Transcript Call Date 09/21/2010

Operator: Good day, everyone, and welcome to the Adobe System's Q3 Fiscal Year 2010 Earnings Conference Call. As a reminder, today's call is being recorded.

At this time, I would like to turn the conference over to Mr. Mike Saviage, Vice President of Investor Relations. Please go ahead, sir.

Mike Saviage - VP, IR: Good afternoon and thank you for joining us today. Joining me on the call are Adobe's President and CEO, Shantanu Narayen, as well as Mark Garrett, Executive Vice President and CFO.

In the call today, we will discuss Adobe's third quarter fiscal year 2010 financial results. By now, you should have a copy of our earnings press release, which crossed the wire approximately one hour ago. If you need a copy of the press release, you can go to adobe.com under the Company and Press links to find an electronic copy.

Before we get started, I want to emphasize that some of the information discussed in this call, particularly our revenue and operating model targets and our forward-looking product plans is based on information as of today, September 21, 2010, and contains forward-looking statements that involve risk and uncertainty. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings press release we issued today, as well as Adobe's SEC filings.

During this call, we will discuss GAAP and non-GAAP financial measures. A reconciliation between the two is available in today's earnings release and on our Investor Relations' website in the investor data sheet.

Call participants are advised that the audio of this conference call is being broadcast live over the Internet and Adobe Connect, and is also being recorded for playback purposes. An archive of the call will be made available on Adobe's Investor Relations' website for approximately 45 days, and is the property of Adobe Systems. The audio and archive may not be re-recorded or otherwise reproduced or distributed without prior written permission from Adobe Systems.

I would now like to turn the call over to Shantanu.

Shantanu Narayen - President and CEO: Thanks Mike, and good afternoon. In Q3, we achieved record revenue of $990.3 million with non-GAAP earnings per share of $0.54. We had strong results across all our major business lines and the increase in revenue resulted in strong profit margins and earnings, which exceeded our target ranges.

I'll spend a few minutes discussing Q3 business highlights then Mark will provide additional details about the quarter and our financial targets. Following that I'll provide some closing comments and we'll take your questions.

In our Creative Solutions business, we're enabling publishers, creative agencies and a broad spectrum of designers and developers to bring their content to the exploding number of screens. Customer feedback for CS5 continues to be overwhelmingly positive. Momentum continued in Q3, which helped to maintain the 15% growth cycle to-date performance versus CS4. Our strategy to drive more Suites adoption continues to succeed, 71% of the CS5 product family revenue we achieved in Q3 was Suites-based.

Read our Earnings Call Transcript disclaimer.
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