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Adobe Reports Strong Q1 Results

Adobe Systems Incorporated (Nasdaq:ADBE) today reported financial results for its first quarter of fiscal year 2013 ended March 1, 2013.

Adobe® achieved revenue of $1.008 billion, exceeding its targeted range of $950 million to $1 billion. During the quarter, the Company continued to accelerate adoption of Adobe Creative Cloud™ as it migrates to a subscription model in its Digital Media business. Adobe also achieved strong revenue growth with Adobe Marketing Cloud solutions in its Digital Marketing business.

First Quarter Financial Highlights

  • Diluted earnings per share were $0.13 on a GAAP-basis, and $0.35 on a non-GAAP basis.
  • Operating income was $98.2 million and net income was $65.1 million on a GAAP basis. Operating income was $240.7 million and net income was $177.9 million on a non-GAAP basis.
  • Cash flow from operations was $322.0 million.
  • Deferred revenue grew by $80.5 million to a record $700.0 million.
  • Adobe ended Q1 with 479 thousand paid Creative Cloud members, an increase of 153 thousand when compared to the number of members as of the end of Q4 fiscal year 2012.
  • Adobe Marketing Cloud achieved quarterly revenue of $215.4 million, which represents 20 percent year-over-year growth.

A reconciliation between GAAP and non-GAAP results is provided at the end of this press release.

Executive Quotes

“Creative Cloud is quickly becoming mainstream, with the overwhelming majority of Creative purchases on Adobe.com now being Creative Cloud subscriptions,” said Shantanu Narayen, president and chief executive officer, Adobe. “With Adobe Marketing Cloud, we are the partner of choice for Chief Marketing Officers as we help our customers migrate their businesses online.”

“Adoption of Creative Cloud accelerated and we achieved strong Digital Marketing revenue and bookings growth in Q1,” said Mark Garrett, executive vice president and chief financial officer, Adobe. “We're building a stronger, more predictable recurring revenue model which will drive higher long-term growth.”

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