THE BUSINESSWEEK 50 RANKINGS + 25

19

Adobe Systems

Adobe has a long tradition of innovation, from the Postscript language that helped launch the desktop publishing craze in the 1980s to its Photoshop graphics program and the ubiquitous Acrobat software for handling PDF files on the Internet. But while other big software rivals such as Microsoft have slowed down with maturity, analysts expect Adobe’s sales to grow 15% this year, thanks largely to Creative Suite 3, which will integrate tools used to create Web sites and move Net content onto mobile devices. CEO Bruce Chizen also plans to woo Microsoft’s software partners with a new technology called Apollo, which allows them to mix Web features into their PC programs.

Overall Grade

A

Market Data

ADBE

Market Value
(2/28/2007)

$23.0 Billion

Profitability*

32.3%

A-

Sales Growth Rate**

25.0%

B+

12-Month Sales

$2.6 Billion

12-Month Net Income

$0.5 Billion

Total Return Past 12 Months

1.8%

Past 36 Months

111.0%

Economic SectorInformation Technology
IndustryApplication Software
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.
$FOOTNOTE

Bruce R. Chizen

Bruce R. Chizen, 51

CEO since 2000


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Data as of 2/28/07 provided by Standard & Poor's Compustat