SAN JOSE, Calif. — Sept. 20, 2011 — Adobe Systems Incorporated (Nasdaq:ADBE) today reported financial results for its third quarter fiscal year 2011 ended Sept. 2, 2011.
Third Quarter Financial Highlights
– Revenue was $1.013 billion.
– GAAP diluted earnings per share were $0.39. Non-GAAP diluted earnings per share were $0.55.
– GAAP operating income was $274 million. GAAP operating margin was 27.1 percent. Non-GAAP operating income was $366 million. Non-GAAP operating margin was 36.1 percent.
– GAAP net income was $195 million. Non-GAAP net income was $273 million.
– Deferred revenue grew to $484 million.
– Cash flow from operations was $325 million.
– Adobe repurchased 3.6 million shares of stock during the quarter.
A reconciliation between GAAP and non-GAAP results is provided at the end of this press release.
“Our industry is in the midst of a major transformation,” said Shantanu Narayen, president and CEO of Adobe. “We are aligning around two large initiatives: Content Authoring and Digital Marketing. Each of these opportunities offers significant growth potential, and Adobe is well-positioned to be the market leader in both.”
“We delivered strong earnings in Q3. At the high end of our financial targets for our fourth quarter, we will achieve our 10 percent annual revenue growth target as well as earnings growth of 20 percent for the fiscal year,” said Mark Garrett, executive vice president and CFO of Adobe.
For the fourth quarter of fiscal 2011, Adobe is targeting revenue of $1.075 billion to $1.125 billion.
The Company’s operating margin is targeted to be 26.5 percent to 29.5 percent on a GAAP basis, and 36 percent to 38 percent on a non-GAAP basis. In addition, the Company is targeting its share count to be between 497 million and 499 million shares, and it is targeting non-operating expense between $17 million and $21 million. Adobe’s GAAP and non-GAAP tax rates are expected to be approximately 22 percent.
These targets lead to a fourth quarter diluted earnings per share target range of $0.41 to $0.50 on a GAAP basis, and an earnings per share target range of $0.57 to $0.64 on a non-GAAP basis.
Reconciliation between these GAAP and non-GAAP financial targets is provided at the end of this press release.