Adobe Systems Incorporated: SWOT Analysis & Company Profile Reference code: BRSMPL001 Published: June 2010 Business Review John Carpenter House 7 Carmelite Street London EC4Y 0BS United Kingdom Tel: +44 (0) 20 7936 6400 Fax: +44 (0) 20 7336 6813 Adobe Systems Incorporated - SWOT Profile Page 1 Adobe Systems Incorporated - SWOT Profile Table of Contents Adobe Systems Incorporated - Company Overview ............................................................................................................... 3 Adobe Systems Incorporated - Key Facts ............................................................................................................................... 3 Adobe Systems Incorporated - Business Description ............................................................................................................. 4 Adobe Systems Incorporated - Major Products and Services ................................................................................................. 6 Adobe Systems Incorporated - History .................................................................................................................................... 7 Adobe Systems Incorporated - SWOT Analysis ...................................................................................................................... 8 SWOT Analysis - Overview............................................................................................................................................. 8 Adobe Systems Incorporated - Strengths ....................................................................................................................... 8 Adobe Systems Incorporated - Weaknesses................................................................................................................ 10 Adobe Systems Incorporated - Opportunities ............................................................................................................... 11 Adobe Systems Incorporated - Threats ........................................................................................................................ 12 Adobe Systems Incorporated - Key Competitors .................................................................................................................. 13 Adobe Systems Incorporated - Key Employee Biographies ................................................................................................. 15 Adobe Systems Incorporated - Company Statement ............................................................................................................ 16 Adobe Systems Incorporated - Locations And Subsidiaries ................................................................................................. 19 Head Office ................................................................................................................................................................... 19 Other Locations & Subsidiaries .................................................................................................................................... 19 Adobe Systems Incorporated - Financial Ratios ................................................................................................................... 21 Financial Ratios - Capital Market Ratios ....................................................................................................................... 21 Financial Ratios - Annual Ratios ................................................................................................................................... 21 Financial Ratios - Interim Ratios ................................................................................................................................... 22 Financial Ratios - Ratio Charts ..................................................................................................................................... 23 Adobe Systems Incorporated - Share Data ........................................................................................................................... 24 Appendix ................................................................................................................................................................................ 25 Methodology ................................................................................................................................................................. 25 Ratio Definitions ............................................................................................................................................................ 25 Disclaimer ..................................................................................................................................................................... 29 Adobe Systems Incorporated - SWOT Profile Page 2 Adobe Systems Incorporated - SWOT Profile Adobe Systems Incorporated - Company Overview Adobe Systems Incorporated (Adobe) is into designing, developing, and offering software packages including business and mobile software solutions, besides providing other related services. The company’s key technologies include Portable Document Format (PDF), Adobe Reader, Adobe Flash Player, Adobe Air, Adobe PostScript, and Omniture Online Marketing Suite. The company’s product portfolio consists of Acrobat 9 Pro extended, Creative Suite 3 design, Photoshop CS3, Creative Suite 3 Web Premium, Fireworks CS3, Photoshop Light Room 2, Captivate 3, Contribute CS3, Cold Fusion 8, Dream Weaver CS3, Creative Suite 3 Production Premium, and Creative Suite 3 Master Collection. Its recent product introductions include Adobe Photoshop lightroom 3, Creative Suite 5 design premium, and eLearning Suite 2, among others. Its software runs on personal computers with Microsoft Windows, Apple OS, Linux, UNIX and various non-PC platforms, depending on the product. It also is focused on developing and marketing its products to run on mobile phones. Adobe distributes its products through a network of distributors and dealers, value-added resellers, systems integrators, independent software vendors and OEMs, direct to end users and through its website. The company has presence in various countries across the Americas, Europe, Middle East and Africa, and Asia. Adobe is headquartered in San Jose, the US. Financial Performance The company reported revenues of (U.S. Dollars) USD 2,945.85 million during the fiscal year ended November 2009 (fiscal year 2009), a decrease of 17.71% from 2008. The operating profit of the company was USD 690.51 million during the fiscal year 2009, a decrease of 32.85% from 2008. The net profit of the company was USD 386.51 million during the fiscal year 2009, a decrease of 55.67% from 2008. Adobe Systems Incorporated - Key Facts Adobe Systems Incorporated, Key Facts 345 Park Avenue, San Jose, CA Corporate Address – 95110, United States Ticker Symbol, Exchange ADBE [NASDAQ] Telephone + 1 408 5366000 No. of Employees 8,660 Fax + 1 408 5376000 Fiscal Year End November URL www.adobe.com Revenue (in USD Million) 2,945.85 Industry Technology Australia, Belgium, Brazil, Canada, China, Denmark, France, Germany, India, Italy, Locations Japan, Malaysia, Norway, Poland, Republic of Korea, Russian Federation, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Turkey, United Kingdom, United States. Source: Annual Report, Company Website, Primary and Secondary Research Adobe Systems Incorporated - SWOT Profile Page 3 Adobe Systems Incorporated - SWOT Profile Adobe Systems Incorporated - Business Description Adobe Systems Incorporated (Adobe) designs, and develops software packages and mobile software. Its offerings serve the requirements of professionals, designers, knowledge workers and original equipment manufacturer (OEM) partners. The company’s products are utilized by various developers and enterprises for creating, managing and delivering compelling content. Adobe’s products can be used with Microsoft Windows, Apple OS, Linux, UNIX, and various non-PC platforms. It distributes its products through a wide network of channels consisting of distributors and dealers, value- added resellers, systems integrators, independent software vendors and OEMs, and its website. It also sells these products directly to the end users. The company also offers various services and support activities to its customer base. For the fiscal year ended November 27, 2009, Products contributed USD 2,759.4 million while Services and Support activities contributed USD 186.5 million to the total revenue of the company. The company operated through five reportable segments, namely, Creative Solutions, Business Productivity Solutions, Mobile and Device Solutions, Platform, and Print and Publishing, until 2008. However in the fiscal year 2009, it changed its business segmentation into Creative Solutions, Business Productivity Solutions, Platform and Print and Publishing, with Business Productivity Solutions segment further classified into Knowledge Worker and Enterprise. The company’s Creative Solutions segment operates principally for focused creative professional customers, including graphic designers, production artists, web designers and developers, user interface designers, writers, photographers and prepress professionals in areas of web design and development, professional photography, video production, animation and motion graphic production, and printing visually rich information. Adobe Creative Solutions products provide real time rich media solutions