The book is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License so you can tweak it and use it pretty much however you want. It should be a great resource for anyone getting started with JavaScript in AIR. For those that like paper, you can order a copy from Amazon and I assume we’ll have a bunch to give away at various events where Adobe has a booth.

SAN FRANCISCO (Reuters) - Adobe Systems Inc said on Monday it was putting under one roof businesses selling software for computers, phones and consumer electronics to make them run on a single technology platform.

The announcement is part of a series of management restructuring moves Adobe is making following the planned retirement of two long-time executives, effective May 1. A spokeswoman said no employee job losses would result.

The move represents the further consolidation of its 2005 Macromedia acquisition with the broader Adobe organization while also recognizing the growing convergence of once-distinct software and the need for it to run across a range of devices.

The merging of the different business units may appear on its face to be simply an organizational restructuring, where the Mobile and Devices Business Unit will be folded under Adobe's Experience and Technology group.

But the changes also are part of Adobe's effort to create a unified technical underpinning for software that serves everyone from Japanese phone users to YouTube watchers.

Adobe said its mobile and devices business unit is joining the experience and technology group led by Adobe Chief Technology Officer Kevin Lynch, a former Macromedia executive.

Gary Kovacs, vice president of product management and marketing for the mobile and devices unit, has been promoted to vice president and general manager of the business unit and will report to Lynch from May 1.

Written with Adobe's AIR, AMP is a hybrid online/offline application that lets people subscribe to different video Webcasts. Adobe has signed on some initial partners including CBS, PBS, MTV Networks, Universal Music Group, CondeNet, and Scripps Networks. 

The videos are either streamed from the content producer's Web site or they can be downloaded. Adobe will host a catalog, called Adobe TV, on its site where people can find videos. Because it's written with AIR, people can be offline or online when they watch.

Initially, many of the videos available will have advertising attached to them. Using Adobe's digital rights management server, content producers are able to put controls on their media.

Later, Adobe intends to enhance the client software so that different business models can be used, such as paying to download a video or renting videos, said Ashley Still, a senior product manager at Adobe.

There are already a number of existing media players, like iTunes. But Adobe thinks that having its own player will be strategic for a number of reasons, Still said.

Adobe is trying to garner more revenue from online services; the company will be sharing revenue from advertising with content producers.

The player complements Adobe's multimedia content-creation multimedia products and Adobe wants to make sure there is a high-quality way to deliver that video to consumers, Still said.

"This is the first time Adobe is participating directly in the playback of Internet video content," she said.

With the 1.0 version, the player will only display Flash content, but Adobe could add support for other formats, Still said.

“Driving our strong performance in Q1 was continued demand for our Creative Suite 3 family of products, as well as another record quarter for our Acrobat product family,” said Shantanu Narayen, president and chief executive officer of Adobe. “As the proliferation of digital content accelerates, customers worldwide are looking to Adobe for solutions that enable the creation of rich, engaging experiences across a variety of media and devices. This trend will continue to drive our diverse business, and we are reaffirming our fiscal year financial targets.”

During the first quarter, Adobe repurchased 33.3 million shares of its outstanding common stock, at a cost of $1.25 billion.

First Quarter GAAP Results

Adobe’s GAAP diluted earnings per share for the first quarter of fiscal 2008 were $0.38, based on 571.3 million weighted average shares. This compares with GAAP diluted earnings per share of $0.24 reported in the first quarter of fiscal 2007 based on 604.2 million weighted average shares, and GAAP diluted earnings per share of $0.38 reported in the fourth quarter of fiscal 2007 based on 587.9 million weighted average shares. Adobe’s first quarter GAAP earnings per share target range was $0.34 to $0.36.

GAAP operating income was $275.4 million in the first quarter of fiscal 2008, compared to $146.3 million in the first quarter of fiscal 2007 and $275.8 million in the fourth quarter of fiscal 2007. As a percent of revenue, GAAP operating income in the first quarter of fiscal 2008 was 30.9 percent, compared to 22.5 percent in the first quarter of fiscal 2007 and 30.3 percent in the fourth quarter of fiscal 2007.

GAAP net income was $219.4 million for the first quarter of fiscal 2008, compared to $143.9 million reported in the first quarter of fiscal 2007, and $222.2 million in the fourth quarter of fiscal 2007.

First Quarter Non-GAAP Results

Non-GAAP diluted earnings per share for the first quarter of fiscal 2008 were $0.48. This compares with non-GAAP diluted earnings per share of $0.30 reported in the first quarter of fiscal 2007, and non-GAAP diluted earnings per share of $0.49 reported in the fourth quarter of fiscal 2007. Adobe’s first quarter non-GAAP earnings per share target range was $0.44 to $0.46.

Adobe’s non-GAAP operating income was $359.0 million in the first quarter of fiscal 2008, compared to $223.8 million in the first quarter of fiscal 2007 and $362.2 million in the fourth quarter of fiscal 2007. As a percent of revenue, non-GAAP operating income in the first quarter of fiscal 2008 was 40.3 percent, compared to 34.5 percent in the first quarter of fiscal 2007 and 39.7 percent in the fourth quarter of fiscal 2007.

Non-GAAP net income was $273.0 million for the first quarter of fiscal 2008, compared to $183.6 million in the first quarter of fiscal 2007, and $289.6 million in the fourth quarter of fiscal 2007.

A reconciliation between GAAP and non-GAAP results is provided at the end of this press release.

Adobe Provides Second Quarter Financial Targets and Reaffirms Fiscal Year 2008 Targets

For the second quarter of fiscal 2008, Adobe announced it is targeting revenue of $855 million to $885 million. The Company is targeting a GAAP operating margin of 29 to 30 percent in the second quarter. On a non-GAAP basis, the Company is targeting a second quarter operating margin of approximately 39 percent.

In addition, Adobe is targeting its share count to be between 546 million and 550 million shares in the second quarter of fiscal 2008. The Company also is targeting GAAP non-operating income to be $14 million to $16 million, and non-GAAP non-operating income to be $5 million to $7 million. Adobe’s GAAP and non-GAAP tax rate is expected to be approximately 27 percent.

These targets lead to a second quarter earnings per share target range of $0.35 to $0.37 on a GAAP basis, and a earnings per share target range of $0.45 to $0.47 on a non-GAAP basis.

For fiscal year 2008, Adobe reaffirmed it is targeting annual revenue growth of approximately 13 percent. The Company also reaffirmed it is targeting an annual GAAP operating margin of approximately 30 percent, and a non-GAAP operating margin of approximately 39 percent.

In addition, Adobe provided fiscal year 2008 earnings targets. On a GAAP basis, the Company is targeting earnings per share of $1.45 to $1.51. On a non-GAAP basis, the Company is targeting earnings per share of $1.86 to $1.92.

A reconciliation between these GAAP and non-GAAP financial targets is provided at the end of this press release.

Forward-Looking Statements Disclosure

This press release contains forward-looking statements, including those related to revenue, operating margin, other income, tax rate, share count, earnings per share, and business momentum which involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: delays in development or shipment of Adobe’s new products or major new versions of existing products, introduction of new products and business models by existing and new competitors, failure to successfully manage transitions to new business models and markets, failure to anticipate and develop new products and services in response to changes in demand for application software and software delivery, computers, printers, or other non PC-devices, adverse changes in general economic or political conditions in any of the major countries in which Adobe does business, difficulty in predicting revenue from new businesses, costs related to intellectual property acquisitions, disputes and litigation, inability to protect Adobe’s intellectual property from unauthorized copying, use, disclosure or malicious attack, failure to realize the anticipated benefits of past or future acquisitions and difficulty in integrating such acquisitions, changes to Adobe’s distribution channel, disruption of Adobe’s business due to catastrophic events, risks associated with international operations, fluctuations in foreign currency exchange rates, changes in, or interpretations of, accounting principles, impairment of Adobe’s goodwill or intangible assets, unanticipated changes in, or interpretations of, tax rules and regulations, Adobe’s inability to attract and retain key personnel, market risks associated with Adobe’s equity investments, and interruptions or terminations in Adobe’s relationships with turnkey assemblers. For further discussion of these and other risks and uncertainties, individuals should refer to Adobe’s SEC filings.

The financial information set forth in this press release reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in Adobe’s Quarterly Report on Form 10-Q for the first quarter ended Feb. 29, 2008, which the Company expects to file in April 2008. Adobe does not undertake an obligation to update forward-looking statements.

About Adobe Systems Incorporated

Adobe revolutionizes how the world engages with ideas and information – anytime, anywhere and through any medium. For more information, visit www.adobe.com.

© 2008 Adobe Systems Incorporated. All rights reserved. Adobe, the Adobe logo, Acrobat and Creative Suite are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.

Condensed Consolidated Statements of Income (In thousands, except per share data; unaudited)
	Three Months Ended
	February 29, 2008				March 2, 2007
Revenue:
Products	$	851,962			$	620,298
Services and support		38,483				29,109
Total revenue		890,445				649,407
Total cost of revenue:
Products		59,805				53,815
Services and support		22,670				18,448
Total cost of revenue		82,475				72,263
Gross profit		807,970				577,144
Operating expenses:
Research and development		168,485				137,129
Sales and marketing		262,595				214,678
General and administrative		82,929				61,275
Restructuring and other charges		1,431				—
Amortization of purchased intangibles		17,099				17,725
Total operating expenses		532,539				430,807
Operating income		275,431				146,337
Non-operating income:
Interest and other income, net		13,290				22,515
Interest expense		(1,809	)			(51	)
Investment gain		8,732				5,601
Total non-operating income		20,213				28,065
Income before income taxes		295,644				174,402
Provision for income taxes		76,265				30,551
Net income	$	219,379			$	143,851
Basic net income per share	$	0.39			$	0.24
Shares used in computing basic net income per share		561,113				587,969
Diluted net income per share	$	0.38			$	0.24
Shares used in computing diluted net income per share		571,259				604,249

Condensed Consolidated Balance Sheets (In thousands, except per share data; unaudited)
	February 29,				November 30,
		2008				2007
ASSETS
Current assets:
Cash and cash equivalents	$	1,032,733			$	946,422
Short-term investments		682,511				1,047,432
Trade receivables, net of allowances for doubtful accounts of $4,271 and $4,398, respectively		293,266				318,145
Other receivables		38,839				44,666
Deferred income taxes		132,892				171,472
Prepaid expenses and other assets		46,031				44,840
Total current assets		2,226,272				2,572,977
Property and equipment, net		297,522				289,758
Goodwill		2,144,368				2,148,102
Purchased and other intangibles, net		357,221				402,619
Investment in lease receivable		207,239				207,239
Other assets		108,279				92,984
	$	5,340,901			$	5,713,679
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade and other payables	$	62,019			$	66,867
Accrued expenses		368,978				383,436
Accrued restructuring		5,956				3,731
Income taxes payable		40,931				215,058
Deferred revenue		191,662				183,318
Total current liabilities		669,546				852,410
Long-term liabilities:
Deferred revenue		22,956				25,950
Deferred income taxes		146,344				148,943
Income taxes payable		197,741				—
Debt		450,000				—
Accrued restructuring		12,069				13,987
Other liabilities		28,095				22,407
Total liabilities		1,526,751				1,063,697
Stockholders’ equity:
Preferred stock, $0.0001 par value; 2,000 shares authorized		—				—
Common stock, $0.0001 par value		61				61
Additional paid-in-capital		2,317,582				2,340,969
Retained earnings		4,260,970				4,041,592
Accumulated other comprehensive income		26,215				27,948
Treasury stock, at cost (59,963 and 29,425 shares, respectively), net of reissuances		(2,790,678	)			(1,760,588	)
Total stockholders’ equity		3,814,150				4,649,982
	$	5,340,901			$	5,713,679

Condensed Consolidated Statements of Cash Flows (In thousands; unaudited)
	Three Months Ended
	February 29, 2008				March 2, 2007
Cash flows from operating activities:
Net income	$	219,379			$	143,851
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion		69,202				68,498
Stock-based compensation expense, net of tax		43,034				46,285
Net investment (gains)		(9,493	)			(5,835	)
Changes in deferred revenue		5,350				7,585
Changes in operating assets and liabilities		71,828				10,736
Net cash provided by operating activities		399,300				271,120
Cash flows from investing activities:
Sales and maturities of short-term investments, net of purchases		362,592				(249,540	)
Purchases of property and equipment		(26,268	)			(48,300	)
Purchases of long term investments and other assets, net of sales		(8,038	)			(9,517	)
Cash paid for acquisitions		485				(3,094	)
Net cash provided by (used for) investing activities		328,771				(310,451	)
Cash flows from financing activities:
Purchases of treasury stock		(1,150,022	)			(301,468	)
Reissuances of treasury stock		53,510				94,033
Proceeds from borrowings under credit facility		450,000				—
Excess tax benefits from stock-based compensation		—				1,556
Net cash used for financing activities		(646,512	)			(205,879	)
Effect of exchange rate changes on cash and cash equivalents		4,752				(1,260	)
Net increase (decrease) in cash and cash equivalents		86,311				(246,470	)
Cash and cash equivalents at beginning of period		946,422				772,500
Cash and cash equivalents at end of period	$	1,032,733			$	526,030

Non-GAAP Results
(In thousands, except per share data)
The following table shows the Company’s non-GAAP results reconciled to GAAP results included in this release for the quarters ended February 29, 2008, March 2, 2007 and November 30, 2007.
	Three Months Ended
	February 29, 2008				March 2, 2007				November 30, 2007
GAAP operating income	$	275,431			$	146,337			$	275,832
Stock-based compensation		43,034				31,852				39,791
Restructuring and other charges		1,431				—				—
Amortization of purchased intangibles		39,071				45,644				46,570
Non-GAAP operating income	$	358,967			$	223,833			$	362,193
GAAP net income	$	219,379			$	143,851			$	222,208
Stock-based compensation, net of tax		30,859				23,089				30,401
Restructuring and other charges, net of tax		1,026				—				—
Amortization of purchased intangibles, net of tax		28,018				32,606				35,524
R&D tax benefit, net of tax		—				(12,330	)			—
Investment (gain) loss, net of tax		(6,262	)			(3,592	)			1,478
Non-GAAP net income	$	273,020			$	183,624			$	289,611
Diluted net income per share:
GAAP net income	$	0.38			$	0.24			$	0.38
Stock-based compensation, net of tax		0.06				0.04				0.05
Restructuring and other charges, net of tax		—				—				—
Amortization of purchased intangibles, net of tax		0.05				0.05				0.06
R&D tax benefit, net of tax		—				(0.02	)			—
Investment gain, net of tax		(0.01	)			(0.01	)			—
Non-GAAP net income	$	0.48			$	0.30			$	0.49
Shares used computing diluted net income per share		571,259				604,249				587,865

The following tables show the Company’s reconciliation of non-GAAP to GAAP operating expense and operating margin for the quarters ended February 29, 2008, March 2, 2007 and November 30, 2007.

	Three Months Ended
	February 29, 2008			March 2, 2007			November 30, 2007
GAAP operating expenses	$	532,539		$	430,807		$	536,783
Stock-based compensation		(42,190	)		(30,648	)		(38,577	)
Restructuring and other charges		(1,431	)		—			—
Amortization of purchased intangibles		(17,099	)		(17,725	)		(17,893	)
Non-GAAP operating expenses	$	471,819		$	382,434		$	480,313

	Three Months Ended
	February 29, 2008		March 2, 2007		November 30, 2007
GAAP operating margin	30.9	%	22.5	%	30.3	%
Stock-based compensation	4.8		4.9		4.4
Restructuring and other charges	0.2		—		—
Amortization of purchased intangibles	4.4		7.1		5.0
Non-GAAP operating margin	40.3	%	34.5	%	39.7	%

The following table shows the Company’s reconciliation of non-GAAP to GAAP effective tax rate for the quarter ended February 29, 2008.

	February 29, 2008
GAAP effective income tax rate	25.8	%
Stock-based compensation	0.3
Amortization of purchased intangibles	0.3
Investment gain	(0.1	)
Non-GAAP effective income tax rate	26.3	%

Second Quarter and Fiscal Year 2008 Non-GAAP Financial Targets

(In millions, except per share data)

The following tables show the Company’s second quarter and fiscal year 2008 non-GAAP financial targets reconciled to GAAP financial targets included in this release.

	Second Quarter Fiscal 2008
	Low			High			Fiscal 2008
GAAP operating margin	29.0	%		30.0	%		30.0	%
Stock-based compensation	5.3			4.7			4.7
Amortization of purchased intangibles	4.7			4.3			4.3
Non-GAAP operating margin	39.0	%		39.0	%		39.0	%

	Second Quarter Fiscal 2008
	Low				High
Non-operating income:
GAAP non-operating income	$	14.0			$	16.0
Investment gain		(9.0	)			(9.0	)
Non-GAAP non-operating income	$	5.0			$	7.0

	Second Quarter Fiscal 2008							Fiscal 2008
	Low				High			Low				High
Diluted net income per share:
GAAP net income per share	$	0.35			$	0.37		$	1.45			$	1.51
Stock-based compensation, net of tax		0.06				0.06			0.22				0.22
Amortization of purchased intangibles, net of tax		0.05				0.05			0.20				0.20
Investment gain, net of tax		(0.01	)			(0.01	)		(0.01	)			(0.01	)
Non-GAAP net income per share	$	0.45			$	0.47		$	1.86			$	1.92
Shares used in computing diluted net income per share		550.0				546.0			555.0				551.0

Adobe continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Adobe uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Adobe’s management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adobe presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Adobe’s operating results in a manner that focuses on what Adobe believes to be its ongoing business operations. Adobe’s management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes the stock-based compensation impact of SFAS 123R, restructuring and other charges, amortization of purchased intangibles and incomplete technology, investment gains and losses and the related tax impact of these items, the net tax impact of the R&D tax benefit, the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes, and the non-GAAP measures that exclude such information in order to assess the performance of Adobe’s business and for planning and forecasting in subsequent periods. Whenever Adobe uses such a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed above.

Adobe Systems Incorporated
Mike Saviage, 408-536-4416 (Investor Relations)
ir@adobe.com
Holly Campbell, 408-536-6401 (Public Relations)
campbell@adobe.com

Adobe also released Flex 3, an open-source development tool set aimed at helping developers build RIAs.

AIR is a runtime environment for building RIAs in Adobe Flash, HTML and AJAX. The product includes the Safari WebKit browser engine, SQLite local database functionality, and APIs that support desktop features such as native drag and drop and network awareness.

Nasdaq Stock Market Inc. and the American Cancer Society are among several organizations running beta versions of AIR to bridge the gap between the Web and the desktop. Both said they turned to the technology because it doesn't require that developers learn new skills.

"AIR takes the capabilities of Flex and Flash and extends that to the desktop," said David Wadhwani, general manager and vice president of Adobe's platform business unit. "With the release of AIR, we've expanded our developer base to the millions of AJAX and HTML developers of the world."

Wadhwani added that FedEx Corp. has developed an AIR application to track packages in real time on the desktop, and Deutsche Bank AG is using AIR to provide alerts about financial transactions.

In addition, business intelligence software vendor Business Objects SA has been working with Adobe to develop reports on transactional data that run in AIR and can be e-mailed to multiple users who can then access live feeds from those reports to do an analysis, he said.

Adobe also released Flex Builder 3, its commercial Eclipse-based plug-in for developing RIAs. Flex Builder 3 integrates with Adobe's Creative Suite 3 set of tools to make it easier for designers and developers to work together, Adobe said. It will be available in two versions: The standard edition is $249, while the professional version costs $699.

Finally, Adobe also made available its BlazeDS open-source tool that promises to help developers boost the data transfer capabilities and performance of RIAs. BlazeDS is made up of components from Adobe's LiveCycle Data Services suite.

• Adobe Photoshop
• Adobe Illustrator
• Adobe Thermo
• Adobe Dreamweaver

• Adobe Flex Builder
• Adobe Flash
  
• Adobe Dreamweaver
• Adobe Fireworks

• Adobe Photoshop
• Adobe Illustrator
• Adobe Fireworks
• Adobe Flex Builder
• Adobe Thermo
• Adobe Flash
  
• Adobe Dreamweaver

ColdFusion is in use at 75 of the Fortune 100 companies. Here's a partial list of customers (with links to case studies) that rely on ColdFusion today.

• New York State Office for Technology
• One World Alliance
• Peace Corps
• Pepsi
• PGA of America
• Pottery Barn
• Prometheus
• Quaker Oats
• Roche Pharmaceuticals
• Rugby Football Union
• Schlumberger
• Scott's Corporation
• Seattle Times
• United States Senate
• Siemens
• Simon & Schuster
• SmartMoney.com
• Sprint
• State of New York
• Symantec
• Travelers
• United States Olympic Committee
• US Bank
• The Wharton School of the University of Pennsylvania

• PostScript® and PDF for the print industry
• Dreamweaver® and Flash® for the web
• Adobe Premiere® and After Effects® for film and TV
• LiveCycle® and Flex™ for the enterprise
• Adobe AIR™ for extending rich Internet applications to the desktop
• Award-winning software like Photoshop® and Acrobat® that spans all industries, serving customers of every size