What's in Adobe's 10-Q?

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Adobe added a clause that states "shippable backlog will be insignificant in future periods". This clause is consistent with the commentary management provided on the Sept. 20 earnings call but represents a departure from Adobe's historic commentary around backlog.

On the earnings call, the management had attributed the change to improved channel inventory management and MacMillan noted that the company has not had any shippable backlog at the end of the previous three quarters.

On July 15, Adobe completed its acquisition of privately held EchoSign, a Web-based provider of electronic signatures and signature automation. This acquisition was not material to Adobe's consolidated financial statements.

Adobe incurred a 2-percentage-point increase to its effective tax rate as a result of its acquisition of EchoSign (one-time tax charge from inter-company transactions needed to license certain EchoSign assets). This increase was partially offset by the federal research and development credit.

Subsequent to Sept. 2, Adobe completed two asset acquisitions and two business combinations with an aggregate purchase consideration of about $91 million. These acquisitions are not expected to have a material impact on Adobe's financial statements.

In Creative and Interactive Solutions, adoption of CS 5.5 helped maintain a solid revenue run-rate that was achieved by CS5. Adobe's Creative and Interactive Solutions segment growth remained relatively stable year-over-year during the fiscal third quarter of 2011.

Adobe attributed the decline in Digital Media Solutions revenue year-over-year primarily to tough comparison and given product releases in fiscal 2010 that did not occur in fiscal 2011. Specifically, Adobe flagged a 10 percent year-over-year decrease in Photoshop point product revenue related to releases of Photoshop and Photoshop Extended in fiscal 2010.

Similarly, the company saw a year-over-year decline in Lightroom revenue since Adobe did not have an updated release in the fiscal third quarter of 2011 as it had in the fiscal third quarter of 2010. The overall number of units licensed for Digital Media Solutions increased year-over-year in the fiscal third quarter of 2011 and unit average selling prices (ASP) were relatively stable.

Revenue from Adobe's Print and Publishing segment decreased 7 percent year-over-year as a one-time large deal in Captivate and Adobe's Tech Communication products that occurred in the fiscal third quarter of 2010 did not repeat in the fiscal third quarter of 2011.