Tag: Adobe

Adobe disappoints Wall Street

adobeSoftware maker Adobe appears to have disappointed the cocaine-nose jobs of Wall Street with its latest results. They are weeping…

It was not as if the results were bad, in fact Adobe Systems second-quarter revenue and full-year revenue forecast just about met analysts’ estimates, it is just that Wall Street hoped that they would see increased demand from the outfit’s Creative Cloud package of software tools.

Adobe has been focused on selling its software through web-based subscriptions, which ensures a predictable and recurring revenue stream. This helped Adobe’s cash rise for nine straight quarters and should mean that growth would be predictable going forward as most of the company’s clients were now on the subscription model

However Adobe’s forecast for the current quarter was largely below estimates – mostly because Adobe is always conservative on its outlooks and Wall Street suddenly seems to think that is a weakness.

Adobe’s second-quarter revenue rose 20.4 percent to $1.40 billion as more customers subscribed for Creative Cloud, which includes graphic design tool Photoshop, web design software Dreamweaver and web video building application Flash.

Revenue from the digital media business, which houses Creative Cloud, jumped 26 percent to $943 million, but fell just short of analyst’s estimates of $944.3 million, according to FactSet StreetAccount.

Adobe forecast third-quarter total revenue of $1.42-$1.47 billion, implying year-over-year growth of 16.4-20.5 percent. But the forecast was largely below analysts expectations of $1.47 billion.

Wall Street analysts expect the company’s revenue to rise between 19-22 percent over the next four quarters.
Adobe’s second-quarter net income rose 65 percent to $244.1 million, or 48 cents per share. Excluding items, Adobe earned 71 cents per share, beating analysts’ estimates of 68 cents.

Adobe reports digital deflation

adobeBeancounters working for Adobe have worked out that the digital economy is suffering a period of deflation across nearly every category it tracks.

Adobe’s Digital Price Index (DPI) looks at inflation rates across consumer goods categories that the the Bureau of Labour Statistics’ Consumer Price Index (CPI) measures.

However Adobe analyses actual transactions in real time and can account for changes in consumer behaviours, whereas the government relies on surveys to approximate sales of each product category.

Adobe spotted deflation across nearly all categories Adobe tracks including groceries, TVs, toys, electronics, furniture, appliances and flights.

In sporting goods, the DPI shows three times more deflation than the CPI for the last year. In computers, the DPI saw twice as much deflation year on year versus the CPI.  The DPI explains the decrease in demand and pricing for sporting goods and PCs that led to the recent bankruptcy announcements and Intel pulling out of the PC market.

Prices for TVs and Tablets dropped the most year on year. TV prices fell 19.7 per cent and tablets fell by 20.9 per cent.

The DPI analyses billions of digital transactions involving 15 billion website visits and 2.2 million products sold online, tracking digital transactions more accurately than any other current source.

Economists, Austan Goolsbee, former chairman of the Council of Economic Advisers for President Obama, and Pete Klenow, professor, department of economics at Stanford University, are the brains behind the DPI.

Google plots the death of Flash

flash-gordonSearch engine outfit Google has just announced a so-called “timeline” for banishing Flash from its advertising network and  going totally HTML5.

According to a spokesGoogle the Google Display Network and DoubleClick Digital Marketing are now going 100 percent HTML5.

From June 30, 2016, Google will no longer accept new Flash display ads from advertisers. On January 2, 2017, even old Flash ads will be blocked from appearing, making Google’s ad network mostly Flash-free.

Video ads will remain in Flash however, although there are not many of those.

Google has been trying to get advertisers off of Flash for some time, providing tools and best practices for switching. Now it apparently feels good enough about the switch to force it on the world.

Even Adobe has had enough of Flash. It killed Flash Professional—its Flash authoring tool—in December, and today announced Adobe Animate, which outputs projects in HTML5.

Adobe kills Flash

flash-gordonAdobe has decided that the name “Flash” is pretty poisonous and will kill off the brand name next year.

The 2016 iteration of Adobe’s Creative Cloud subscription software scheme will see the end of the ‘Flash’ branding, and an even greater emphasis on  HTML5.

Adobe said that the Flash product will be called Adobe Animate CC from January’s update of the Creative Cloud suite. There’s no explicit mention of what the browser plug-in will be called, but presumably it will mirror the change of name.

This is a low key exit for a name which pioneered rich text media and video in the age before broadband. For the last decade it has been a buzzword for security vulnerabilities and exploits.

The Flash browser plugin has always been binary, hard-coded software and it was impossible to fix because of the proprietary nature of the code.

The rapid emergence of HTML5 and more ‘open’ standards which could more effectively and safely replace the web’s dependence on Flash.

Google’s Chrome browser has its own custom Flash player which allows Flash content to continue to run on its browser. Mozilla has agreed to continue Flash plugin support despite its plans to kill off some aspects of it.

In January of this year YouTube progressed its experimental HTML5 video support into the default format for video, and from September Amazon began to refuse Flash-based ads in its own consumer networks.

However the tech is still with us, but it will not be called Flash. Any new version of the plugin will continue to run Flash content in 2016. The company said:

“Today, over a third of all content created in Flash Professional today uses HTML5, reaching over one billion devices worldwide. It has also been recognized as an HTML5 ad solution that complies with the latest Interactive Advertising Bureau (IAB) standards, and is widely used in the cartoon industry by powerhouse studios like Nickelodeon and Titmouse.”

Apple software exposes Windows PCs to risk

flasherThe fruity cargo
cult Apple has the dubious achievement of beating Oracle and Adobe as the creator of software most likely to stuff up your Windows based PC.

A Secunia Research said that Apple’s multimedia program, QuickTime, and its iTunes software were ranked as some of the most “exposed” programs. To be fair it was not Apple’s fault, although the company could do something to warn users that the software was out-of-date.

More than 61 percent of computers detected running QuickTime did not have the latest version. With iTunes, 47 percent of the installations were outdated versions.

Outdated software can potentially pose a security risk since unpatched vulnerabilities could be used by hackers to take over a computer. Over the last year, 18 vulnerabilities have been found in QuickTime.

In September, Apple posted an advisory warning of several problems in QuickTime versions prior to 7.7.8 for Windows 7 and Vista after it had patched the problems about a month prior.

One of the flaws could be exploited by crafting a malicious file, which “may lead to an unexpected application termination or arbitrary code execution,” Apple said.

The extent of the problem put Apple above Adobe and Oracle as the provider of the exposed software to the masses.

The top five most exposed programs included Adobe Reader X 10.x, Oracle Java JRE 1.8.x/8.x and Adobe Reader XI 11.x.

Linux golden age threatened by bug army

bugA top Linux geek has warned that its golden age is about to be bought to a close by security problems.

Golden ages are normally brought to an end by a rebellion of giants, titans or plagues. Jim Zemlin, executive director of the Linux Foundation said that Linux will be killed off by giant, titanic plagues of security bugs.

Several high profile zero-day vulnerabilities in popular open source technologies last year served not only to show the importance of open source to the internet and IT world, but how how badly it projects were under-resourced.

Heartbleed which impacted OpenSSL, Poodle, a vulnerability in SSL, and the Shellshock vulnerability in Bash damaged the reputation of open sauce badly and resulted in the creation of the Core infrastructure Initiative (CII), a Linux-Foundation led initiative to improve open source security.

CII’s financial backers include Adobe, Bloomberg, HP, VMware, Rackspace, NetApp, Microsoft, Intel, IBM, Google, Fujitsu, Facebook, Dell, Amazon and Cisco.

Zemlin said that this support was proof we’re living in a “golden age” of open source.

“Almost the entirety of the internet is entirely reliant on open source software. We’ve reached a golden age of open source. Virtually every technology and product and service is created using open source,” he said.

Open source was not immune to the security threat faced by the entire computing industry and said Heartbleed, and others, served as a wakeup call for the IT industry. It is believed 200,000 devices are still vulnerable.

“Heartbleed literally broke the security of the internet,” he explained. “Over a long period of time, whether we knew it or not, became dependent on open source for the security and Integrity of the internet.”

Zemlin said many people had asked him why had the peer review process not highlighted these vulnerabilities, but the answer was blindingly obvious.

Many of these projects were being worked by one part-time volunteer. Before Heartbleed, OpenSSL received less than $2,000 a year in donations, while OpenSSH and Bash had similarly meagre support.

“It’s completely out of proportion to the attention these projects play in society and the Internet,” said Zemlin. “OpenSSL for a long period of time was essentially maintained by two guys named Steve. Think about that.”

US businesses fear EU data ruling

European Court of Human RightsUS companies are fearing that an EU ruling on data might hurt them and cause them to lose business in the Old Country.

An EU court struck down a deal to let US and European companies easily transfer personal data between continents and it could mean some US tech companies frozen out of the market or replaced by EU rivals.

Coupon company RetailMeNot and security software outfit Symantec said a European change to rules governing transatlantic personal data transfers would hurt US companies and called for a quick fix.

A quick fix is unlikely. The EU seems in no mood to fix a law that the US broke by spying on EU businesses, citizens and politicians.

Big Tech giants like IBM are less likely to be effected because they can use a number of different legal arrangements they say will keep their data flowing.

Midsize companies including document management company Adobe Systems, design software maker Autodesk and coupon company RetailMeNot relied on Safe Harbour.

Adobe said it was “evaluating options” to transfer personal data between continents and Autodesk also said it was evaluating the decision.

Symantec said it has mechanisms in place to legally protect data transfers, but the uncertainty following the ruling has made it difficult for such companies to determine their next steps and how much business might be lost.

The company said that setting up data servers in Europe would not solve anything as you can’t isolate the flow of data only within one territory or jurisdiction. Data storage without processing would not be enough.

The US Chamber of Commerce has warned that companies could create new agreements with their customers in the European Union, but the lack of clarity and high costs could leave smaller firms with a “disproportionate share” of the burden of new legal requirements.

On the EU side, companies are rubbing their paws with glee. The change could be an opportunity for European companies like Orange and Deutsche Telekom to take business from U.S. companies.

Customers, both private individuals and businesses, will have to reassess their data plans and to look at storing their data within Europe, a source close to the company said.

IBM, Facebook, Google and Amazon will have to face additional legal arrangements such as “model clauses” which set privacy standards between the sender and receiver of the data and allow them to continue data transfers.

Some have agreements with European users who consent to having their data transferred to the United States. Facebook, for example, has a registration process that allows it to obtain consent from users when they sign up for the service.

Adobe revenue falls

adobeAdobe lowered its profit forecast for 2016 below analyst estimates partly due to a strong dollar, sending its shares down as much as 13 percent in extended trading.

The Photoshop maker said it expects full-year revenue of about $5.7 billion. The cocaine nose jobs of Wall Street were expecting revenue of $5.93 billion.

The company is expecting a $200 million hit on revenue as a result of the stronger dollar, and a $100 million hit as Adobe’s “last material businesses are transitioning to ratable revenue.”

Adobe has been switching to web-based subscriptions from traditional licensed software to help attract more predictable recurring revenue. So far this has proved a little precarious but it is expected to pick up in time.

Acrobat, Elements and Lightroom are among the last of the products to transition to web-based subscription.

“It looks like the ramp of the business is going to be moving more slowly going forward,” FBR Capital Markets & Co analyst Samad Samana said.

Creative Cloud, which includes Photoshop, Illustrator and Indexing, is the biggest of the company’s cloud businesses. The other two are Marketing Cloud and Document Cloud.

The company, which is conservative with its forecast, expects 20 percent growth in revenue in its Digital Media business, which includes Creative Cloud, and the Marketing Cloud segment in 2016.
Adobe forecast fourth-quarter revenue and profit below estimates in September, despite adding more subscribers for its Creative Cloud software suite than analysts had expected.

Online content causes online discontent

Adobe HQ - Wikimedia CommonsThe use of multiple screens and the accuracy of online content are considered sceptically by many people who view it daily.

Adobe said it had surveyed over 2,000 people and concluded that they use n average of six devices and look at an average of 12 sources of content.

Smartphones are now the most frequently used device by young people with 88 percent of people say they use an average of nearly three devices simultaneously.

Quite how they do that, Adobe did not say, but 40 percent think the deluge of information is distracting.

Over a third of young people value entertainment over accuracy, the Adobe survey said, but 60 percent wonder whether news articles or biased, whether photos have been altered, or whether people are paid to write positive reviews.

Over 70 percent will trust content from family members.

Seven out of 10 people will choose a beautifully designed over a plain page, 68 percent don’t like content to be too long, and 83 percent dislike pages where images take too long to load.

Adobe profits slower than expected

Adobe HQ - Wikimedia CommonsAdobe is doing worse than its company executives predicted, despite an increase in its cloud based subscriptions.

Adobe has been switching to web-based subscriptions from traditional licensed software to help attract more predictable recurring revenue and that move seems to be paying off

Recurring revenue had reached 73 percent of total revenue, Chief Financial Officer Mark Garrett said in a statement.

The company said it added 684,000 Creative Cloud net subscriptions in the quarter ended August 28, compared with the 640,000 net additions that analysts had expected, according to research firm FactSet Street Account.

Creative Cloud, which includes Photoshop, Illustrator and Indexing, is the biggest of the company’s cloud businesses. The other two are Marketing Cloud and Document Cloud.

Adobe said it had 5.3 million Creative Cloud subscriptions at the end of the third quarter.

Adobe raised its full-year annualized recurring revenue forecast for the digital media to $2.95 billion from $2.93 billion.

The company forecast revenue of $1.28 billion-$1.33 billion for the fourth quarter ending November.

Wall Street expected revenue of $1.36 billion.

Adobe’s net income rose to $174.5 million in the third quarter, from $44.7 million a year earlier.

Revenue rose 21 percent to $1.22 billion which was better than what analysts expected.