Adobe Systems Inc (ADBE) has reported a 56.68 percent jump in profit for the quarter ended Mar. 03, 2017. The company has earned $398.45 million, or $0.80 a share in the quarter, compared with $254.31 million, or $0.50 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $471.72 million, or $0.94 a share compared with $332.61 million or $0.66 a share, a year ago.
Revenue during the quarter grew 21.56 percent to $1,681.65 million from $1,383.34 million in the previous year period. Gross margin for the quarter expanded 24 basis points over the previous year period to 85.89 percent. Total expenses were 72.11 percent of quarterly revenues, down from 77.75 percent for the same period last year. This has led to an improvement of 564 basis points in operating margin to 27.89 percent.
Operating income for the quarter was $469 million, compared with $307.76 million in the previous year period.
However, the adjusted operating income for the quarter stood at $608.04 million compared to $435.29 million in the prior year period. At the same time, adjusted operating margin improved 469 basis points in the quarter to 36.16 percent from 31.47 percent in the last year period.
"Whether you’re a designer, student, enterprise or government agency, reimagining your customer experience has become a critical part of every digital transformation strategy," said Shantanu Narayen, president and chief executive officer of Adobe. "Adobe's mission to help our customers design and deliver great experiences has never been more relevant as is reflected in our outstanding Q1 results."
Operating cash flow improves significantly
Adobe Systems Inc has generated cash of $730.37 million from operating activities during the quarter, up 46.80 percent or $232.84 million, when compared with the last year period.
The company has spent $338.88 million cash to meet investing activities during the quarter as against cash outgo of $258.84 million in the last year period.
The company has spent $331.50 million cash to carry out financing activities during the quarter as against cash outgo of $284.39 million in the last year period.
Cash and cash equivalents stood at $1,068.90 million as on Mar. 03, 2017, up 28.67 percent or $238.20 million from $830.70 million on Mar. 04, 2016.
Working capital increases marginally
Adobe Systems Inc has recorded an increase in the working capital over the last year. It stood at $2,801.49 million as at Mar. 03, 2017, up 3.62 percent or $97.91 million from $2,703.58 million on Mar. 04, 2016. Current ratio was at 1.95 as on Mar. 03, 2017, down from 2.21 on Mar. 04, 2016.
Days sales outstanding went down to 41 days for the quarter compared with 45 days for the same period last year.
At the same time, days payable outstanding went up to 33 days for the quarter from 25 for the same period last year.
Debt comes down marginally
Adobe Systems Inc has recorded a decline in total debt over the last one year. It stood at $1,884.07 million as on Mar. 03, 2017, down 1.71 percent or $32.76 million from $1,916.83 million on Mar. 04, 2016. Adobe Systems Inc has recorded a decline in long-term debt over the last one year. It stood at $1,884.07 million as on Mar. 03, 2017, down 1.71 percent or $32.76 million from $1,916.83 million on Mar. 04, 2016. Total debt was 14.44 percent of total assets as on Mar. 03, 2017, compared with 16.11 percent on Mar. 04, 2016. Debt to equity ratio was at 0.25 as on Mar. 03, 2017, down from 0.27 as on Mar. 04, 2016. Interest coverage ratio improved to 25.87 for the quarter from 16.66 for the same period last year.
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