Way to go, Adobe Systems
Adobe launched new versions of nearly every major product in its portfolio over the summer, and the third-quarter results showed great demand -- especially for the higher-margin premium packages. All of that carried over nicely into the just-reported fourth quarter, with record revenues in all three of Adobe's bread-and-butter segments.
So where is the company investing its loot? In research and development, of course. Any technology-oriented business worth its salt would agree that the future depends on coming up with newer, better, different solutions, and you can't do that without a commitment to research. Just ask Microsoft
"Research and development continues to be the primary area for our investments," said newly appointed CEO Shantanu Narayen. The "majority" of 117 new hires this quarter joined the engineering crew.
Not that today's product lineup is weak or anything. Narayen also said that about 76% of all Web video today is streamed through its Flash application, despite the best efforts of Microsoft and its Silverlight product. A mobile Flash version with full video support just saw the light of day, and wireless giants like Nokia
Going the other direction, a new development platform dubbed Adobe Integrated Runtime (AIR) is meant to make desktop applications out of Web content. Business-to-business specialists like Salesforce.com
That was a yummy quarter, with an even tastier future outlook. I'm getting hungry for some Adobe stock.
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Fool contributor Anders Bylund is a Google shareholder but holds no other position in any of the companies discussed here. He doesn't like chicken stock very much, but can cook up a mean tiramisu. You can check out Anders' holdings if you like, and Foolish disclosure will always be there for you.