The financial information set forth in this press release reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in Adobe’s Annual Report on Form 10-K for our year ended Nov. 27, 2015, which Adobe expects to file in Jan. 2016.
Adobe assumes no obligation to, and does not currently intend to, update these forward-looking statements.
About Adobe Systems Incorporated
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Condensed Consolidated Statements of Income (In thousands, except per share data; unaudited) |
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| Three Months Ended | Year Ended | |||||||||||||||
|
November 27,
2015 |
November 28,
2014 |
November 27,
2015 |
November 28,
2014 |
|||||||||||||
| Revenue: | ||||||||||||||||
| Subscription | $ | 907,434 | $ | 628,954 | $ | 3,223,904 | $ | 2,076,584 | ||||||||
| Product | 284,496 | 327,951 | 1,125,146 | 1,627,803 | ||||||||||||
| Services and support | 114,474 | 116,423 | 446,461 | 442,678 | ||||||||||||
| Total revenue | 1,306,404 | 1,073,328 | 4,795,511 | 4,147,065 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Subscription | 106,368 | 87,883 | 409,194 | 335,432 | ||||||||||||
| Product | 24,320 | 21,930 | 90,035 | 97,099 | ||||||||||||
| Services and support | 70,673 | 51,130 | 245,088 | 189,549 | ||||||||||||
| Total cost of revenue | 201,361 | 160,943 | 744,317 | 622,080 | ||||||||||||
| Gross profit | 1,105,043 | 912,385 | 4,051,194 | 3,524,985 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 220,514 | 213,687 | 862,730 | 844,353 | ||||||||||||
| Sales and marketing | 441,472 | 408,862 | 1,683,242 | 1,652,308 | ||||||||||||
| General and administrative | 134,052 | 133,534 | 531,919 | 543,332 | ||||||||||||
| Restructuring and other charges | 521 | 19,385 | 1,559 | 19,883 | ||||||||||||
| Amortization of purchased intangibles | 18,050 | 12,412 | 68,649 | 52,424 | ||||||||||||
| Total operating expenses | 814,609 | 787,880 | 3,148,099 | 3,112,300 | ||||||||||||
| Operating income | 290,434 | 124,505 | 903,095 | 412,685 | ||||||||||||
| Non-operating income (expense): | ||||||||||||||||
| Interest and other income (expense), net | 22,399 | 105 | 33,909 | 7,267 | ||||||||||||
| Interest expense | (16,515 | ) | (12,678 | ) | (64,184 | ) | (59,732 | ) | ||||||||
| Investment gains (losses), net | 622 | 343 | 961 | 1,156 | ||||||||||||
| Total non-operating income (expense), net | 6,506 | (12,230 | ) | (29,314 | ) | (51,309 | ) | |||||||||
| Income before income taxes | 296,940 | 112,275 | 873,781 | 361,376 | ||||||||||||
| Provision for income taxes | 74,235 | 24,139 | 244,230 | 92,981 | ||||||||||||
| Net income | $ | 222,705 | $ | 88,136 | $ | 629,551 | $ | 268,395 | ||||||||
| Basic net income per share | $ | 0.45 | $ | 0.18 | $ | 1.26 | $ | 0.54 | ||||||||
| Shares used to compute basic net income per share | 498,384 | 498,124 | 498,764 | 497,867 | ||||||||||||
| Diluted net income per share | $ | 0.44 | $ | 0.17 | $ | 1.24 | $ | 0.53 | ||||||||
| Shares used to compute diluted net income per share | 506,012 | 507,451 | 507,164 | 508,480 | ||||||||||||
|
Condensed Consolidated Balance Sheets (In thousands, except par value; unaudited) |
||||||||
|
November 27,
|
November 28,
2014 |
|||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 876,560 | $ | 1,117,400 | ||||
| Short-term investments | 3,111,524 | 2,622,091 | ||||||
| Trade receivables, net of allowances for doubtful accounts of $7,293 and $7,867, respectively | 672,006 | 591,800 | ||||||
| Deferred income taxes | — | 95,279 | ||||||
| Prepaid expenses and other current assets | 161,802 | 175,758 | ||||||
| Total current assets | 4,821,892 | 4,602,328 | ||||||
| Property and equipment, net | 787,421 | 785,123 | ||||||
| Goodwill | 5,366,881 | 4,721,962 | ||||||
| Purchased and other intangibles, net | 510,007 | 469,662 | ||||||
| Investment in lease receivable | 80,439 | 80,439 | ||||||
| Other assets | 159,832 | 126,315 | ||||||
| Total assets | $ | 11,726,472 | $ | 10,785,829 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Trade payables | $ | 93,307 | $ | 68,377 | ||||
| Accrued expenses | 678,364 | 683,866 | ||||||
| Debt and capital lease obligations | — | 603,229 | ||||||
| Accrued restructuring | 1,520 | 17,120 | ||||||
| Income taxes payable | 6,165 | 23,920 | ||||||
| Deferred revenue | 1,434,200 | 1,097,923 | ||||||
|
Total current liabilities |
2,213,556 | 2,494,435 | ||||||
| Long-term liabilities: | ||||||||
| Debt | 1,907,231 | 911,086 | ||||||
| Deferred revenue | 51,094 | 57,401 | ||||||
| Accrued restructuring | 3,214 | 5,194 | ||||||
| Income taxes payable | 256,129 | 125,746 | ||||||
| Deferred income taxes | 208,209 | 342,315 | ||||||
| Other liabilities | 85,459 | 73,747 | ||||||
| Total liabilities | 4,724,892 | 4,009,924 | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $0.0001 par value; 2,000 shares authorized | — | — | ||||||
| Common stock, $0.0001 par value | 61 | 61 | ||||||
| Additional paid-in-capital | 4,184,883 | 3,778,495 | ||||||
| Retained earnings | 7,253,431 | 6,924,294 | ||||||
| Accumulated other comprehensive income (loss) | (169,080 | ) | (8,094 | ) | ||||
| Treasury stock, at cost (103,025 and 103,350 shares, respectively), net of reissuances | (4,267,715 | ) | (3,918,851 | ) | ||||
| Total stockholders' equity | 7,001,580 | 6,775,905 | ||||||
| Total liabilities and stockholders' equity | $ | 11,726,472 | $ | 10,785,829 | ||||
|
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