Sep. 24, 2014, 9:39 AM
- With the Chinese government showing growing hostility towards U.S. tech companies (Microsoft and Qualcomm are two prominent examples), Adobe (NASDAQ:ADBE) has decided to shutter its Chinese R&D ops. The company's sales offices within the country will remain open.
- A source tells Reuters layoffs have begun, and will affect ~300 employees. The source also says Adobe's decision was affected by widespread piracy within China, and the company's transition to a subscription/cloud business model from up-front licenses.
- Adobe stopped releasing new versions of Creative Suite (sold through up-front licenses) last year to focus on Creative Cloud subscriptions, a move that was partly seen as an effort to combat piracy. The company's Asian sales fell 25% Y/Y in the August quarter to $148.2M.
Sep. 22, 2014, 4:33 PM
- Aviary provides an SDK used by many mobile developers to quickly add photo-editing capabilities to their apps - a basic SDK is provided for free, while premium versions go for $120-$275/month.
- The startup also provides ad services - brands can offer custom photo filters and stickers - and has developed popular photo-editing apps of its own (100M+ downloads are claimed).
- Adobe (NASDAQ:ADBE) hasn't provided an acquisition price. The media software giant says Aviary's SDK will be used to strengthen an upcoming Creative SDK for Adobe's Creative Cloud apps. The Creative SDK will provide 3rd-party mobile developers access to a variety of image-editing APIs previously available only to Adobe engineers, presumably with the goal of creating a stronger ecosystem for Adobe's PC apps.
- Blog posts: Adobe, Aviary
Sep. 17, 2014, 10:08 AM
- BofA/Merrill Lynch analyst Kash Rangan is out in defense of Adobe (ADBE -3.8%), reiterating his Buy rating and $80 target and saying the selloff following disappointing revenue guidance is an overreaction, noting that creative cloud subscriptions hit 502K in FQ3 and implies a better than expected H2 number.
- The analyst explains the shift of revenue, as a greater than expected percentage of marketing cloud bookings is falling under multi-year subscription agreements with ratable revenue recognition vs. an upfront perpetual license.
- Bookings appear to be solid, Rangan says, with a 40% increase in the number of customers signing deals greater than $500K.
- Also, ADBE maintained its FY 2014-16 goal of 25% revenue compound annual growth rate for marketing cloud, driven by a strong on- and off-balance sheet backlog.
Sep. 16, 2014, 5:35 PM
Sep. 16, 2014, 4:23 PM
- Guidance is on the light side, with FQ4 revenue expected at $1.025B-$1.075B vs. the Street outlook of $1.09B, and EPS of $0.26-$0.32 vs. the Street at $0.31.
- Guidance is located in the earnings call presentation. The live call starts at 5 ET.
- ADBE -4% AH
- Previously: Adobe Systems beats by $0.02, misses on revenue
Sep. 16, 2014, 4:03 PM
Sep. 15, 2014, 5:35 PM
Sep. 5, 2014, 4:06 AM
- Apple (NASDAQ:AAPL) is adding new security features to iCloud, following the posting of celebrity photographs on the Internet from hacked accounts.
- A new layer of notifications will alert users if an effort is made to change a password, log in from a new device or restore files.
- The company will also add additional password protection by sending an extra code to a person’s mobile phone after a password is entered.
- Meanwhile, Apple, Google (GOOG, GOOGL), Intel (NASDAQ:INTC) and Adobe (NASDAQ:ADBE) have appealed the rejection of a proposed $324.5M settlement over a lawsuit which accused the four tech companies of limiting competition by conspiring not to hire each others' workers.
Jun. 18, 2014, 9:12 AM
Jun. 17, 2014, 5:35 PM
Jun. 17, 2014, 4:47 PM
- Adobe (ADBE) added 464K Creative Cloud subs in FQ2, up from 405K in FQ1 and 402K in FQ4; the base is now at 2.308M. The company now expects to end FY14 (ends in November) with 3.3M CC subs, up from a prior 3M.
- Marketing Cloud (ad tech) revenue +23% Y/Y in FQ2 to $283M, after growing 24% in FQ1. Adobe still expects at least 20% Marketing Cloud rev. growth and 30% bookings growth in FY14. LiveCycle/conferencing revenue -17% to $47.4M.
- CC annualized recurring revenue (ARR) rose by $208M in FQ2 to $1.195B, and Document Services (Acrobat) ARR by $19M to $183M. Adobe now expects to end FY14 with total Digital Media ARR of $1.925B, up from a prior $1.85B.
- With the cloud transition pushing out revenue recognition, Adobe expects FQ3 revenue of $975M-$1.025B and EPS of $0.22-$0.28 vs. a consensus of $1.02B and $0.27. Investors don't mind.
- 44% of FQ2 revenue was from subscriptions, and 53% was recurring. The deferred revenue balance rose by $48M Q/Q to $929M.
- R&D spend +2% Y/Y, sales/marketing +6%. $166M was spent on buybacks.
- FQ2 results, PR, datasheet, prepared remarks
Jun. 17, 2014, 4:19 PM
Jun. 16, 2014, 5:35 PM
May 25, 2014, 6:54 AM
- Apple (AAPL) is seeking a sales ban on nine older models of Samsung (SSNLF) phones after it won a lawsuit which found that the South Korean company infringed on three patents.
- Although Apple won $120M of the $2.2B it sought in the case, the tech giant argues that a ban would be more important than monetary damages.
- While Apple also infringed one Samsung patent, the latter has yet to pursue a ban on Apple products.
- Meanwhile, Apple, along with Adobe (ADBE), Intel (INTC) and Google (GOOG), has confirmed a report that they have agreed to pay $324M to settle claims they limited competition by conspiring not to hire each others' workers.
May 20, 2014, 12:04 PM
- Microsoft's (MSFT -0.3%) 3rd-gen Surface Pro tablet (live blog) has a display that's 1.4" larger than its predecessor, and also features a more business-friendly 3:2 aspect ratio (was 16:9 previously). The display's resolution has been upgraded to 2160x1440 from 1920x1080.
- In spite of the larger screen, the Pro 3's weight (~800g) is lower than the Pro 2's (~900g). Its most powerful model runs on an Intel (INTC -0.1%) Core i7 CPU (high-end), and revamped Type Cover accessories sport a bigger/improved trackpad. At 9.1mm thick, Microsoft declares the Pro 3 the "thinnest [Intel] Core product ever created.
- Adobe (ADBE -0.3%) VP Michael Gough has used the event to show off an upcoming touch-optimized version of Photoshop designed to be manipulated with the Pro 3's stylus.
- The Pro 3 starts at $799, albeit for an Intel Core i3 version; the Pro 2 (64GB model) was priced at $899 at launch time. Citing its form factor and display size, The Verge declares the Pro 3 is "designed to destroy the laptop."
- Though no iPad-killer, the Surface Pro has carved out a niche among business users and enthusiasts - the ARM-based Surface RT has had a rougher time. IDC estimates Windows devices had just a 3.4% tablet share in 2013, but also thinks they'll eventually grab over a quarter of the commercial segment, aided by growing convertible demand.
- Update: Microsoft says Core i5 Pro 3 models will be available on June 20. Other configurations will arrive in August.
Apr. 25, 2014, 4:54 AM
- Apple (AAPL), Google (GOOG), Intel (INTC) and Adobe (ADBE) agreed to pay $324M to settle an antitrust class-action suit accusing them of creating illegal no-hire agreements in Silicon Valley to keep wages down, Reuters reports.
- The amount is far less than the $3.4B in damages that 64,000 employees were collectively seeking. That figure could have tripled had the case gone to trial and the workers won.
- The deal was disclosed yesterday, although financial terms weren't provided.
ADBE vs. ETF Alternatives
Adobe Systems Inc offers a line of software and services used by creative professionals, marketers, developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling operating systems.
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