Adobe Systems Inc. F1Q08 (02/29/2008) Earnings Call Transcript

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2008-03-18 17:24:08.0

Tags: Adobe Systems Inc.

Question-and-Answer Session

Operator

(Operator Instructions) We will go first with Steve Ashley with Robert W. Baird.

Steve Ashley - Robert W. Baird

Hi. In the Creative Solutions business, are you able to tell whether there is any difference in the demand between the enterprise customers or maybe the hobbyists customers?

Shantanu Narayen

Steve, this is Shantanu. I think overall as it relates to our Creative performance, we did have a solid performance. At this time in the cycle it tends to be that licensing is one of the drivers of our business and whether it's marketing departments within the enterprise or large publishing houses, as they start to test out the Creative suite, we are seeing adoptions. No, we are really seeing difference in customer adoption across those two segments.

Steve Ashley - Robert W. Baird

Great. And in respect to the AIR client, any kind of qualitative comment? And what kind of distribution and penetration you would hope to see after a year?

Shantanu Narayen

Well, Steve with respect to AIR, it's very, very early in the process. What's very exciting is, even a month after the launch of AIR, we have about 45 applications. These are shipping applications that are already available on the Adobe website, which reflects great customer developer adoption. Clearly, getting AIR run time out there is one of our key priorities, but we have the ability to piggyback off of both the Reader, as well as the Flash distributions. And like the penetration that we've got in the past for Reader and Flash, we're confident that we will get the AIR run time also out, not just on PCs but also on alternate devices.

Steve Ashley - Robert W. Baird

Great. Thanks so much.

Operator

We'll go next to Jay Vleeschhouwer, Merrill Lynch

Jay Vleeschhouwer - Merrill Lynch

Thanks. Good afternoon. Shantanu, in the last three or four months, have there been any sort of changes behind the scenes in terms of expense or resource commitments at the company even perhaps just subtle ones or subtle changes of focus at all in terms of things like marketing programs, programs out in the field, even any changes that with respect to any particular product commitments, products you may want to spend less time developing perhaps or anything along those lines and then a follow-up?

Shantanu Narayen

Well. Jay, I think every year as part of our annual process, we clearly have a strategic planning process where we talk about the key priorities of the company. And the key priorities as related to this year are our continued investment in our Creative business as well as our Acrobat and Enterprise business. But in addition to that, I would say a particular focus on making sure that we are leveraging the opportunity that we have in video and the opportunity in AIR and getting our platform out there as well as in the hands of developers.

 

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