Adobe Systems' role as a leading desktop publishing software provider is well documented. The company offers the ubiquitous Acrobat Reader freeware, a tool that handles portable document format (PDF) files. The company's Web and print publishing products include Photoshop, Illustrator, and PageMaker. Adobe's offerings also include print technology geared toward manufacturers, as well as Web design (Dreamweaver) and electronic book publishing software. Its InDesign publishing package provides professional layout and design applications. Adobe's Professional Services group offers implementation, training, and support.
Thanks to strong across-the-board sales of the company's products, especially Creative Solutions, Knowledge Worker, and Omniture, revenue for Adobe increased more than 28% in 2010 over 2009 and net income for the same period rose more than 100%.
In early 2012 Adobe enhanced its digital marketing suite with the purchase of marketing management services provider Efficient Frontier. The acquisition brings ad campaign analytics and performance capabilities such as social ad buying for Facebook, as well as brand management and other multi-channel optimization functions.
In 2010 the company purchased Day Software Holding for about $240 million; that deal expanded Adobe's enterprise content management product line and added tools for social collaboration and digital asset management. Web analytics provider Omniture had been acquired in 2009 for $1.8 billion. The deal was one example of Adobe's use of periodic acquisitions to build its product line and to expand its customer base and geographic reach. Adobe used Omniture's technology to bolster the functionality of its integrated marketing product suite to create, manage, and track the usage and performance of a wide variety of Web-based content, including videos, Web pages, and podcasts.
Graphics and Web designers, technical writers, photographers, and other publishing professionals use Adobe's products to create online and print-based documents and content. The company's largest product segment, Creative Solutions, accounts for more than half of Adobe's revenues; products in the segment include InDesign, a professional page layout product that competes primarily against Quark's XPress product, as well as its popular Photoshop image editor. To grow sales further in this product group, Adobe is counting on a mix of more minor product releases, more content capabilities for tablets and hosted online programs, larger customers, more cloud-based options for desktops, and a new subscription licensing model to supplement its perpetual licensing model.
Adobe sells directly and through distributors and resellers. Ingram Micro accounted for about 15% of the company's sales in fiscal 2010.
Though Adobe generates the majority of its sales through Web and print products, the company's activities aren't limited to developing its own software. Adobe has investments in companies whose products and services complement its own.
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