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Post-Earnings Review and Insight - Adobe Systems

LONDON, September 17, 2014 /PRNewswire/ -- has issued free post-earnings review and insight on Adobe Systems Inc. (NASDAQ: ADBE). The company reported its financial results for Q3 FY14 on Tuesday, September 16, 2014. During Q3 FY14, Adobe Systems Inc.'s Creative Annualized Recurring Revenue (ARR) grew to $1.40 billion, and total Digital Media ARR grew to $1.62 billion, while the company's diluted GAAP EPS, fell by $0.07 from Q3 FY13. Our free coverage report can be accessed at:

Earnings Overview 

During Q3 FY14, Adobe's revenue increased to $1,005 million, from $995 million in the prior year quarter, and within the company's Q3 FY14 targeted range of $975 million to $1,025 million. Analysts from Bloomberg were anticipating the company to report revenue of $1,015 million, during the reported quarter. The company's Marketing Cloud generated revenues of $290 million with strong bookings growth. During Q3 FY14, Adobe generated 63% of its revenues from the recurring sources. Further, the company's deferred revenue grew to a record $997 million. The free research on ADBE can be downloaded as in PDF format at:

The company's net income for Q3 FY14 stood at $45 million, or $0.09 per diluted share, compared with $83 million, or $0.16 per diluted share in the preceding year quarter. The company's net income outperformed Bloomberg analysts' forecasts of $0.07 per diluted share. On non-GAAP basis, Adobe's diluted EPS in Q3 FY14 decreased to $0.28, from $0.32 per diluted share in Q3 FY13.

For the third quarter ended August 29, 2014, the company's cash flow from operations stood at $269 million, compared with $216 million at the end of Q3 FY13. Further, during the reported quarter, the company repurchased approximately 1.9 million shares, and returned approximately $133 million of cash to stockholders. Sign up and read the free analyst's notes on ADBE at:

Shantanu Narayen, President and CEO of Adobe, stated that the adoption of Creative Cloud and Adobe Marketing Cloud continued to accelerate. He added that the company is the leader in both of these high-growth categories and have a rapidly growing pipeline, setting up the company for a strong finish to the year in Q4.

Mark Garrett, Executive Vice President and CFO of Adobe, stated that the 63% of company's revenue was recurring during Q3 FY14, which demonstrated the continued success of the company's business model transformation. In addition to momentum with Creative Cloud adoption, Adobe's team drove strong bookings growth with Adobe Marketing Cloud.

Stock Performance  

On the last close, September 16, 2014, shares in Adobe Systems Inc. edged 0.65% higher, ending the session at $70.73. The stock vacillated between $69.19 and $70.96 during the trading session. A total of 5.79 million shares were traded, which was above its three months average volume of 2.61 million shares. Over the last one month and from the beginning of 2014, the company's shares have advanced 0.94% and 18.12%, respectively. However, the stock has declined 2.33% in the previous three trading sessions. Shares in Adobe Systems Inc. are trading above their 200-day moving average. Further, the stock's 50-day moving average of $71.31 is greater than its 200-day moving average of $65.42. The stock traded at a PE ratio of 147.27 and has a Relative Strength Index (RSI) of 40.67. Visit Investor-Edge and access the latest research on ADBE at:

Sneak Peek to Corporate Insider Trading 

In the last one month, Adobe Systems Inc. has reported six insider transactions by four insiders. On August 15, 2014, Bradley Rencher, Senior VP & GM-Digital Marketing Business Unit at Adobe Systems, Inc., sold 3,521 shares of Adobe Systems Inc., for $246,716 at a price of $70.07 per share. On August 16, 2014, Mark Garrett, CFO and Executive Vice-President of Adobe Systems Inc., disposed 29,351 shares at a price of $70.07 per share for $2,056,620. On August 23 and August 26, 2014, Michael A. Dillon, Secretary, Senior Vice President & General Counsel of Adobe Systems Inc., sold a total of 20,925 shares for $1,507,054, at an average price of $72.02 per share. Further, on September 02, 2014, Shantanu Narayen, President and CEO of Adobe Systems Inc., purchased 36,762 shares of the company, worth $732,667, at a price of $19.93 per share, while on the same day he sold the equal number of shares for $2,649,440, at a price of $72.07 per share. Complimentary in-depth research on ADBE is available at:


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