Adobe COO Narayen: "Our Strategy Is Working"

| About: Adobe Systems (ADBE)

Adobe Systems (NASDAQ:ADBE) outperformed expectations in every one of its segments in the fiscal third quarter, according to Shantanu Narayen, the company’s president and chief operating officer.

In an interview Monday afternoon with Tech Trader Daily, Narayen noted that sales in the company’s creative segment grew 16% year-over-year, driven by strong adoption of Creative Suite 3. Other areas were even stronger, with 17% growth in Acrobat revenues, 20% for the enterprise software segment, and 44% for mobile, he said.

“Out strategy is working,” he says. Narayen says uptake for Creative Suite 3 has been better than expected.

Meanwhile, Narayen says he expects growth in each of the company’s segments on a sequential basis in the fiscal fourth quarter. He notes that Adobe will top $3 billion in revenue for the fiscal year, the highest total ever in the company’s 25 years history.

Narayen says the company has not yet given any guidance for fiscal 2008, but will provide an outlook on the year when it reports fiscal fourth quarter results. He wouldn’t say how fast the company can grow going forward, although he did say that if the economy holds up, Adobe can remain a double-digit grower.

Narayen says the company’s operating margin target remains 37%-38%, although the number in the fiscal fourth quarter should be around 39%. He advises investors not to expect margins to get much higher that that, as Adobe continues to invest heavily in R&D.

In after hours trading, Adobe shares Monday gained $1.79, or 4.16%, to $44.85.
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