Executive Summary
      As the market leader in the video and graphics software markets, Adobe is making a very concerted effort now to help redefine the user experience and become a unifying force for the industry. Premiere and After Effects are viewed as the standard packages necessary for anyone interested in creating video content. As a result Premiere has more OEM bundles than any other software package in the video industry.  With the advent of web graphics and streaming video, expect Adobe to be a catalytic force in defining the tools and technology requirements of this burgeoning market.

1. Corporate Overview      2. Video Products     3. Market Analysis    
4. Financial Overview    5. Other Products

Corporate Overview

Company Name

Adobe Systems Incorporated

Address

345 Park Ave., San Jose, CA 95110

URL http://www.adobe.com

Telephone

800-833-6687

Fax

408-537-6000

Year Founded

1982

Senior Management

  • John Warnock - CEO & Co-Chairman of the Board
  • Charles Geschke - President and Co-Chairman of the Board
  • Bruce Chizen - Exec. VP of Worldwide Products and Marketing
  • Hal Covert - Exec. VP and CFO
  • Graham Freeman - Senior VP of Worldwide Sales & Support
  • Colleen Pouliot - Senior VP, General Counsel and Corporate Secretary
  • Jim Stephens - Senior VP, E-Business Development
  • Frederick Mitchell - VP of Venture Development
  • Melissa Dyrdahl - VP of Corporate Marketing
  • Joe Eschbach - VP of ePaper Solutions Group
  • Bryan Lamkin - VP, Product Marketing, Professional Publishing  Solutions
  • Bryan Lamkin - VP, Product Marketing, Professional Publishing  Solutions

Employees

2,800

 
Video Products

Product

Premiere 5.1

Product Overview

Adobe Premiere 5.1 is the most widely used software package for professional digital video editing. Designed for video professionals, Premiere spans the world of broadcast and online media. Premiere 5.1 is well integrated with Adobe’s other key software packages such as Photoshop, Illustrator, and After Effects to provide exceptional dynamic media workflow. Its interface and editing tools enable users to produce broadcast-quality movies for video, film, multimedia, and the Web. 

Pricing

$599

Platforms

Windows NT, Windows 98, Power Macintosh


Product

After Effects 4.1

Product Overview

Adobe After Effects 4.1 is the most widely used software package for motion graphics designers and visual effects artists who want to produce professional quality work for film, video, multimedia, and the Web.  It is tightly integrated with Adobe Photoshop, Adobe Illustrator, and Adobe Premiere.  

Key Features

New features include a flowchart view, added 3D file formats, support for larger files, a Collect Files option for archiving and rendering and an unlimited license render engine.

Pricing

$699 (standard version), $1499 (Production bundle), $49.95 upgrade from version 4.0

Platforms

Windows NT, Windows 98, Power Macintosh


Market Analysis

Company Positioning

Adobe builds software solutions for Web, print and video publishing. Its graphic design, imaging, dynamic media, and authoring tools enable customers to create, publish and deliver visually-rich content for various types of media. The company's products are used by Web and graphic designers, professional publishers, document-intensive organizations, business users, and consumers. Adobe is the fourth largest U.S.-based software company, with annual revenues approaching $1 billion.

Key Partnerships

Microsoft, Apple, Kodak, Intel, eCircles.com, Impresse, Glyphica, Barnes and Noble, FatBrain

Competitive Position

Adobe has the envious position of being the market leader of graphics tools for the design, imaging, dynamic media, and authoring community. Having been in the industry for 18 years, the company is has strong brand recognition and customer loyalty. In the fall of 1999, Adobe launched its new host site which the company plans to use as an information hub for the graphics industry.


Financial Overview - NewTek
Financial Fundamentals

As of:  January 3, 2000

ADBE – Nasdaq

Stock price

$60.625

52 week high

$79

EPS (trailing 4Q)

$1.85

P/E Ratio (trailing 4Q)

32.77

Market valuation

$7.49 Billion

Most recent results:  Q3  ’99

(in millions)

Revenue

Cost of Goods

Gross Profit

Gross Profit Margin

Revenue Growth

12 Month

36 Month

60 Month

 

Financial Partners

Hambrecht & Quiest


Historical Revenue Performance

 (in millions)

1999 (Preliminary) 1998 1997 1996

Revenue

$1,015 $895 $912 $787

Net income

$237 $105 $187 $153

Net profit margin

24%  12% 21% 19%

Detailed Financials

 
Revenue Breakdown

Three months ending Nine months ending
September  1999 September 1998 September 1999 September 1998
- Licensing Revenue
$30,151
$40,825
$104,416
$125,132

     Percent of total

11.6% 18.3% 14.2% 19.3%
- Product Revenue
$230,725 
$182,107
$629,248
$522,923

    Percent of total

88.4% 81.7% 85.8% 80.7%

Total revenue

$260,876 $222,932 $733,664 $648,055


Other Products
Look for product highlights in upcoming Digital Market Snapshots

Print

Professional publishing: InDesign, InCopy, FrameMaker, PressReady, PageMaker

ePaper

e paper: Acrobat 4.0, Acrobat Business Tools, Acrobat Reader

e Book: PDF Merchant, Acrobat

Paper to digital: Capture 2.0

Web

GoLive, Dynamic Link plug-in for GoLive, PageMill, ImageReady

Motion

Digital Imaging: Photoshop, Photoshop LE, PhotoDeluxe, ActiveShare, ActiveShare.com

Dynamic Media: Adobe Premiere, After Effects, Photoshop, Illustrator


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