Adobe Beats The Street; Revenue Up 20 Percent To $1.03 Billion

Adobe is reporting another record quarter today. The company announced the results for the first quarter of fiscal 2011, reporting record revenue of $1.03 billion, which an increase of 20 percent from the same quarter in 2010. Adobe just beat analyst estimates of $0.57 per share; posting non-GAAP diluted earnings per share at $0.58.

Adobe’s non-GAAP operating income was $400.1 million in the first quarter of fiscal 2011, compared to $289.3 million in the first quarter of fiscal 2010 and $384.0 million in the fourth quarter of fiscal 2010. Non-GAAP net income was $298.1 million for the first quarter of fiscal 2011, compared to $211.7 million from same quarter in the previous year and $285.7 million in the fourth quarter of fiscal 2010.

Adobe CEO Shantanu Narayen said in a statement: Our record results in Q1 represent our sixth consecutive quarter of sequential revenue growth…Adobe’s vision for transforming how the world is creating, measuring and delivering digital experiences is resonating with our customers, and our solutions are enabling us to target large addressable markets that are fueling our growth.

In terms of financial targets, Adobe remained cautious due to the recent earthquake and tsunami in Japan. Says CFO Mark Garrett: Our hearts go out to everyone in Japan. Although Adobe has a very diversified business, Japan is our second largest country from a revenue perspective and March is typically our biggest revenue month of the year there due to fiscal year-end spending. Given the uncertain business environment in Japan, we are being prudent and have reduced our revenue expectation for our second quarter by $50 million — or roughly one-third of our original Q2 revenue expectation for Japan.

Adobe is targeting revenue of $970 million to $1 billion for the second quarter of 2011.