Adobe Systems Inc (ADBE) has reported a 79.44 percent jump in profit for the quarter ended Dec. 02, 2016. The company has earned $399.61 million, or $0.80 a share in the quarter, compared with $222.70 million, or $0.44 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $452.55 million, or $0.90 a share compared with $311.90 million or $0.62 a share, a year ago.
Revenue during the quarter grew 23.12 percent to $1,608.42 million from $1,306.40 million in the previous year period. Gross margin for the quarter expanded 195 basis points over the previous year period to 86.54 percent. Total expenses were 70.64 percent of quarterly revenues, down from 77.77 percent for the same period last year. This has led to an improvement of 713 basis points in operating margin to 29.36 percent.
Operating income for the quarter was $472.28 million, compared with $290.43 million in the previous year period.
However, the adjusted operating income for the quarter stood at $589.72 million compared to $410.34 million in the prior year period. At the same time, adjusted operating margin improved 525 basis points in the quarter to 36.66 percent from 31.41 percent in the last year period.
“Adobe’s market-leading digital media and digital marketing solutions are revolutionizing how customers design and deliver exceptional digital experiences,” said Shantanu Narayen, president and chief executive officer of Adobe. “We enter 2017 with significant market momentum and strong technology tailwinds.”
Operating cash flow improves significantly
Adobe Systems Inc has generated cash of $695.60 million from operating activities during the year, up 53.04 percent or $241.09 million, when compared with the last year.
The company has spent $143.10 million cash to meet investing activities during the year as against cash outgo of $285.99 million in the last year.
The company has spent $300.47 million cash to carry out financing activities during the year as against cash outgo of $115.15 million in the last year period.
Cash and cash equivalents stood at $1,011.32 million as on Dec. 02, 2016, up 15.37 percent or $134.76 million from $876.56 million on Nov. 27, 2015.
Working capital increases
Adobe Systems Inc has recorded an increase in the working capital over the last year. It stood at $3,028.14 million as at Dec. 02, 2016, up 16.09 percent or $419.80 million from $2,608.34 million on Nov. 27, 2015. Current ratio was at 2.08 as on Dec. 02, 2016, down from 2.18 on Nov. 27, 2015.
Debt remains almost stable
Total debt of Adobe Systems Inc remained almost stable for the quarter at $1,902.07 million, when compared with the last year period. Long-term debt of Adobe Systems remained almost stable for the quarter at $1,902.07 million, when compared with the last year period. Total debt was 14.97 percent of total assets as on Dec. 02, 2016, compared with 16.26 percent on Nov. 27, 2015. Debt to equity ratio was at 0.26 as on Dec. 02, 2016, down from 0.27 as on Nov. 27, 2015. Interest coverage ratio improved to 26.96 for the quarter from 17.59 for the same period last year.
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