Adobe Systems Incorporated today reported financial results for its first quarter fiscal year 2010 ended March 5, 2010.
In the first quarter of fiscal 2010, Adobe achieved revenue of $858.7 million, compared to $786.4 million reported for the first quarter of fiscal 2009 and $757.3 million reported in the fourth quarter of fiscal 2009. This represents 9 percent year-over-year revenue growth. Adobe's first quarter revenue target range was $800 to $850 million.
"Stability in our creative business, combined with strength in our Acrobat and Omniture solutions, helped drive strong financial performance in Q1," said Shantanu Narayen, president and CEO of Adobe. "The market trends enabling our diverse business remain strong and we are bullish about the upcoming launches of Flash Player and Creative Suite."
First Quarter Fiscal 2010 GAAP Results
Adobe's GAAP diluted earnings per share for the first quarter of fiscal 2010 were $0.24, based on 532.6 million weighted average shares. This compares with GAAP diluted earnings per share of $0.30 reported in the first quarter of fiscal 2009 based on 527.8 million weighted average shares, and GAAP diluted loss per share of $0.06 reported in the fourth quarter of fiscal 2009 based on 532.0 million weighted average shares.
GAAP operating income was $176.8 million in the first quarter of fiscal 2010, compared to $207.9 million in the first quarter of fiscal 2009 and $153.6 million in the fourth quarter of fiscal 2009. As a percent of revenue, GAAP operating income in the first quarter of fiscal 2010 was 20.6 percent, compared to 26.4 percent in the first quarter of fiscal 2009 and 20.3 percent in the fourth quarter of fiscal 2009.
GAAP net income was $127.2 million for the first quarter of fiscal 2010, compared to GAAP net income of $156.4 million reported in the first quarter of fiscal 2009 and GAAP net loss of $32.0 million in the fourth quarter of fiscal 2009.
First Quarter Fiscal 2010 Non-GAAP Results
Adobe's non-GAAP diluted earnings per share for the first quarter of fiscal 2010 were $0.40. This compares with non-GAAP diluted earnings per share of $0.45 reported in the first quarter of fiscal 2009 and non-GAAP diluted earnings per share of $0.39 reported in the fourth quarter of fiscal 2009.
Adobe's non-GAAP operating income was $289.3 million in the first quarter of fiscal 2010, compared to $295.0 million in the first quarter of fiscal 2009 and $265.2 million in the fourth quarter of fiscal 2009. As a percent of revenue, non-GAAP operating income in the first quarter of fiscal 2010 was 33.7 percent, compared to 37.5 percent in the first quarter of fiscal 2009 and 35.0 percent in the fourth quarter of fiscal 2009.
Non-GAAP net income was $211.7 million for the first quarter of fiscal 2010, compared to $236.8 million in the first quarter of fiscal 2009 and $206.8 million in the fourth quarter of fiscal 2009.
Reconciliation between GAAP and non-GAAP results is provided at the end of this press release.
Second Quarter Fiscal 2010 Financial Targets
For the second quarter of fiscal 2010, Adobe is targeting revenue of $875 million to $925 million. The Company's operating margin is targeted to be 21.0 percent to 24.5 percent on a GAAP basis, and 33.5 percent to 35.5 percent on a non-GAAP basis. In addition, the Company is targeting its share count to be between 531 million and 535 million shares, and it is targeting non-operating expense between $16 million and $18 million. Adobe's GAAP and non-GAAP tax rate is expected to be approximately 25 percent.
These targets lead to a second quarter diluted earnings per share target range of $0.23 to $0.30 on a GAAP basis, and an earnings per share target range of $0.39 to $0.44 on a non-GAAP basis.
