Jefferies has provided analysis of Adobe Systems Inc.'s (NASDAQ: ADBE) 10-Q filing for the fiscal third quarter of 2011.

The three key points we would flag relate to: Omniture as a continued driver of Adobe's subscription revenue, modified risks to Adobe's OEM relationships which could mean the company is seeing increased pricing pressure, and a new clause noting that shippable backlog will be insignificant going forward (in-line with management's recent comments, but is a departure from historic commentary), said Ross MacMillan, an analyst at Jefferies.

Omniture was 86 percent of Adobe's subscription revenue in the third quarter of 2011, which is down from 89 percent in the second quarter of 2011 and 87 percent in the first quarter of 2011.

MacMillan would expect to see Omniture's contribution to subscription trend downward over time as the company generates more revenue from other subscription businesses.

Adobe altered the risks section of its SEC filing (relative to the second quarter of 2011, 10-Q) that refers to its original equipment manufacturer (OEM) relationships. The clause now warns of business risk if Adobe's OEMs insist the company lowers its prices. This modification, though prudent, could suggest the company is seeing increasing pricing pressure from OEM partners.

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.

13 percent of Adobe's net revenue the third quarter of 2011 came from its distributor Ingram Micro, down slightly from 14 percent in the fiscal second quarter of 2011.

During the 2011 third quarter, Adobe made a prepayment of $150 million (total of $695 million in the nine months ending fiscal third quarter of 2011) to financial institutions in accordance with its structured stock repurchase agreements. During the nine months ending September 2, 2011, Adobe repurchased about 19.8 million shares at an average price of $32.48 through structured repurchase agreements.

During the 2011 third quarter, Adobe continued to implement restructuring activities, vacating about 22,000 square feet of sales facilities in the United Kingdom.

In August 2011, a Canadian income tax examination of Adobe's fiscal 2005-2008 was completed. Adobe's accrued tax and interest related to these years was about $35 million and was previously reported in long-term income taxes payable.

Adobe reclassified $17 million to short-term income taxes payable and decreased deferred tax assets by $18 million in conjunction with the resolution. The $17 million balance in short-term income taxes payable is partially secured by a letter of credit and is expected to be paid by the fiscal first quarter of 2012.

Adobe stock is trading down 0.63 percent at $25.17 on the NASDAQ Stock Market at 11:14 am EDT.