Business Tech

Adobe Systems on Tuesday said it saw an "improvement in customer demand" as it wound down a difficult fiscal year.

The company reported a fourth-quarter net loss of $32.04 million, or a loss of 6 cents a share, on revenue of $757.3 million, down from a profit of $245.9 million, or 46 cents a share, on sales of $915.3 million in the same quarter a year ago. The figures include the results from recently acquired Web analytics firm Omniture, which chipped in revenue of $26.3 million.

Non-GAAP earnings were $206.8 million, or 39 cents a share (statement). Wall Street was expecting non-GAAP earnings of 37 cents a share.

Read more of "Adobe caps rough fiscal year; Sees demand improve" at ZDNet's Between the Lines.

If you enjoy photography, don't make the mistake I did.

Using my then-new SLR in 2005 and 2006, I photographed everything from my new son to otherworldly canyons we visited in Utah. The only problem: the photos were taken only in JPEG format.

JPEG is fine as far as it goes, and indeed for most folks it will suffice. But having rediscovered my enjoyment of photography in the digital era, I wish I'd used the raw image format that comes with SLRs and higher-end compact cameras.

This illustration shows the checkerboard Bayer pattern of a typical digital camera's image sensor. Each pixel captures either red, green, or blue.

(Credit: DxO Labs)

My initial regret was from the realization that raw photos, although taking up about three times the storage space as a JPEG and requiring manual processing, offer higher quality and more flexibility. But what I've come to understand since then is a second advantage of raw: because processing software improves over time, raw photos in effect can get better with age.

For that reason, I've begun recommending friends who show some enthusiasm for photography that they should think about shooting important events in raw format alongside JPEG. You don't have to mess with the raw files today, but if it's an important event like a wedding, you might want them for later.

I've included below some samples of a noisy image shot in near-darkness at ISO 25,600 from my SLR. They may not convince you that shooting raw is a miracle cure for photo quality, but they do illustrate some differences with the camera's JPEG and that the raw-processing software isn't standing still.

Canon's new S90 high-end compact camera.

(Credit: CNET)

Adobe Systems released beta software on Wednesday to support raw images from Canon's higher-end new compact cameras, the Powershot S90 and G11, Olympus' rival E-P2, Panasonic's FZ38, and a host of SLRs.

The software updates are betas of Lightroom 2.6, the Camera Raw 5.6 plug-in for Photoshop CS4, and the DNG Converter 5.6. All the software uses the same raw-image processing engine.

Raw images provide more flexibility and image quality but require more processing; typically only higher-end cameras support raw file formats. Most folks are happy with JPEG, but many photography enthusiasts prefer raw.

It's a hassle, though: Adobe and various competitors spend a lot of energy reverse-engineering each new camera's format before software such as Lightroom, Aperture, or Picasa can open and edit the photos.

Raw images are the norm for SLRs. The new beta software supports raw images from Canon's higher-end EOS 7D, and Nikon's new professional-grade D3s, the Pentax K-x, and Sony's A500, A550, and A850. Also on the list are medium-format models from Mamiya and Leaf. For a full list, check the blog post announcement from Lightroom Product Manager Tom Hogarty.

The new software also corrects an error in Lightroom 2.5 and Camera Raw 5.5 that could mar images from some Sony, Olympus, and Panasonic and from various medium format digital camera backs. The glitch only affected people with PowerPC-based Macs.

Update 8:02 p.m. PST: As Michael Reichman observed on the Luminous Landscape site, Canon's S90 is a member of a newer breed of camera that corrects lens distortion on its own, making parallel lines parallel again. Naturally, I was curious if Adobe's raw processing techniques did the same, because the distortion can be pretty severe, and fixing that manually is impossible in Lightroom and a hassle in Photoshop.

So I asked Adobe. The answer: yes.

"The S90 raw support in the release candidates (Camera Raw 5.6 and Lightroom 2.6) provides distortion correction that allows our raw processing results to match the optical characteristics of the JPEG output and what's viewed on the camera LCD," Hogarty said.

Adobe Systems expects to cut 680 full-time employees, or about 9 percent of its global workforce, as the company tries to align costs in the face of lagging sales.

The layoff, which was disclosed Tuesday in a regulatory filing with the U.S. Securities and Exchange Commission, marks the second wave of job cuts in the past year. In December, the company said it would slash 600 jobs amid less-than-anticipated demand for its recently launched Creative Suite 4 series of products.

The cuts will affect only those workers who were Adobe employees before the $1.8 billion acquisition of Web analytics firm Omniture in September. They are separate from an earlier-announced 9 percent workforce reduction within the Omniture unit, which had about 1,200 employees at the time of the acquisition.

Adobe, which is best known for its Photoshop and Illustrator software titles, said it expects to record about $65 million to $71 million in pretax restructuring charges.

"Adobe is restructuring its business to align costs with its fiscal 2010 operating plan and budget, the company's three-year strategic priorities, and the realities of the business environment, as well as to ensure its ability to continue investing in long-term growth opportunities," Adobe said in a statement.

In September, Adobe reported that its fiscal third-quarter profit fell 29 percent amid declining sales.

The Lightroom 3 beta will look familiar to current users, but there are changes under the hood. In addition, Lightroom catalogs can be synchronized with Flickr.

(Credit: Adobe Systems)

With the release of its first beta version of Photoshop Lightroom 3.0 on Wednesday night, Adobe Systems is trying to improve the heart of the photographic editing and cataloging software.

"With Lightroom 3, we're looking at a performance and image quality rearchitecture," said Product Manager Tom Hogarty. Those two goals are in opposition, since better image quality demands more computing horsepower. But Hogarty said the software is more responsive when moving among photos, and images look better with new noise reduction and sharpening abilities.

There are other changes, too, though: a revamped import process for importing photos into the software catalog; built-in connections to upload photos to online services and keep them in sync; a more flexible mechanism for laying out photos to be printed; new abilities for stamping watermarks onto photos; and the ability to export photos and music as a video file.

The content fill tool can replace a complicated background when objects are erased. This example shows the removal of a U-shaped white hair.

(Credit: Adobe Systems)

The content fill tool can be applied with a paintbrush-like tool, in this case for removing line across a building.

(Credit: Adobe Systems)

It looks as if Photoshop, already famous for its ability to make people look thinner and skies look bluer, could take digital erasure of unsightly objects to an entirely new level.

A feature called "content-aware fill" described in an Adobe video published Tuesday shows the technology used to remove buffalo, telephone wires, and a tree from various images and to clean up stray hairs from an imperfect scan of a print. Photoshop's existing cloning and spot-healing tools can take care of this to some extent, but the new version adds a lot of smarts to the process.

Specifically, instead of using one nearby patch of the image to fill the area that's being erased, it draws on multiple areas--and it uses image analysis to make informed guesses about how to reproduce complicated background. For example, the technology can reproduce the window frames, architectural patterns, a river shoreline, and clouds.

"What this algorithm is doing is copying multiple patches from the surrounding background to try to fit them inside the hole, unlike the old spot healing proximity match that was trying to find one match for each of these holes," said Dan Goldman, researcher in Adobe's Creative Technologies Lab, in the video. "This generally results in a very convincing fill for these holes."

Adobe developed the technology in collaboration with Princeton University and the University of Washington.

Adobe is showing new warping and bending options.

(Credit: Adobe Systems)

Every time Photoshop gets something like this, some folks--not without some reason in my opinion--get concerned that we can't trust the veracity of the images we see. But let's be clear: although the ease and sophistication of editing is increasing, photo manipulation has been going on for more than a century. And the way I see it, the profusion of digital cameras and ease of posting photos online probably means reality is being documented in unretouched form more comprehensively than ever.

Adobe touted other Photoshop features from the labs, too, in an earlier video released after the recent Photoshop World conference.

One of those new features aims to bring some realism to painting processes. Paint can be spread out and blended, and 3D models of various brushes simulate the behavior of actual brushes with different bristle configurations.

The other was a more sophisticated warping technology in which anchor points determine what parts of the image is fixed and other movable points are used to bend and stretch other parts of the image.

In addition, hinge points can make it possible to anchor the point of a person's elbow, for example, while moving the forearm.

Want more lifelike painting? Adobe is simulating actual brushes and paint behavior.

(Credit: Adobe Systems)

LOS ANGELES--Adobe Systems' announcement of tools to create applications for the Apple iPhone comes with some restrictions.

Adobe announced on Monday at Adobe MAX, the company's worldwide developer conference, that its Flash Professional CS5 developer tool will enable developers to create interactive applications for the iPhone and iPod Touch. A public beta of Flash Professional CS5 is expected to be available later this year.

In an interview at the conference Monday, Anup Murarka, director of technology strategy and partner development in Adobe's platform development unit, spelled out some of the limitations of creating Adobe Flash-style apps for the iPhone. These limitations exist because the Adobe Flash player is not supported on the iPhone.

Murarka clarified that Monday's announcement was not a joint announcement with Apple. "This is an Adobe announcement. This is just something that's related to our tools and what they output, which is a native iPhone app," he said.

"So, we're not running Flash directly on the device. We're actually allowing our tools to output for native iPhone apps," Murarka explained.

He then described some limitations. "Let's take it from the developer's point of view. They have a very rich environment and language. That's in Flash today," he said. "You're not going to get all of the Flash feature set that would normally be there in the run-time."

Murarka continued: "For example, high-quality video, H.264, is not available with this product because Apple does not make available the decoders. They make you use their own UI (user interface) to play back high-quality video." Apple describes the H.264 video codec as delivering "stunning quality at...low data rates."

He also cited synchronization. "Being able to do synchronization between data and video. Those can be built as Flash applications. In sporting events (for example) using flash for data overlay. Those types of things are not going to possible because we don't have access to the APIs (Application Programming Intefaces) that would give us the video decode along with all of the individual frames so we can do synchronization," he said.

And he spoke about graphics effects. "Some of the filter effects. Some of the capabilities that as a programmer you would easily do within Flash are not available as they are not natural APIs that iPhone platform makes available to us."

Murarka concluded by saying that Adobe continues to work with Apple towards getting Flash on the iPhone. "We're not there as quickly as we would like. We're not able to put Flash in the browser. We're not able to put a Flash run-time on the device directly. But this is a good step," he said.

In a surprise announcement, Adobe Systems said Monday that Flash programmers now can bring their applications to Apple's iPhone, a domain of high interest that's been off limits for the programming technology.

Because of Apple restrictions, though, Flash isn't coming in the form in which most people experience it, a Web browser plug-in. Instead, programmers will be able to change Flash applications into native iPhone applications using Adobe's Flash Professional CS5 developer tool, currently in beta testing, then offer their programs as an Apple App Store download.

"This is a great first step in the right direction," said Heidi Voltmer, Adobe's product marketing manager for Flash.

The approach spotlights the tension between Apple, which controls the iPhone tightly in an effort to ensure a good user experience, and others, which want a place on the premier mobile device on the marketplace today.

Chroma Circuit is a Flash game now available as a native iPhone app.

(Credit: Screenshot by Stephen Shankland/CNET)

Adobe's back-door approach still is a significant move for the company, though, which wants to ensure that Flash is a major foundation for Internet-based applications. Programmers familiar with Flash could find the Adobe method an easier way to bring their applications to the iPhone world if they're not experts in coding for the phone and its close cousin, the iPod Touch.

Apple didn't immediately comment for this story.

Some Flash Professional CS5 beta testers are taking advantage of the technique, including BlueskyNorth, Breakdesign, FlashGameLicense.com, Muchosmedia, PushButton Labs, and Bowler Hat Games.

"With the ability to create applications for iPhone in the Flash Professional CS5 beta, I don't need to learn a new programming language or the plethora of development tools that inevitably come with it," said Josh Tynjala, founder of Bowler Hat Games, in a statement. "Instead, I'm able to spend more time exploring ways to make my games like Chroma Circuit more fun on mobile devices like the iPhone and increase my business revenue."

Adobe's ultimate goal remains the same: to get Flash on the iPhone integrated with its Safari browser. "My view is there is only one Web," said Chief Technology Officer Kevin Lynch in an interview. Adobe demonstrated the Flash applications at its Max developer conference in Los Angeles Monday, where Lynch gave the keynote address.

Flash Player 10.1, due in beta form later this year and final form in the first half of 2010, is spreading to just about all the other smartphones out there: Google Android, BlackBerry, Windows Mobile, Palm WebOS, and Nokia Symbian.

Why not the iPhone, too? "The Apple iPhone SDK (software developer kit) license terms do not allow runtime interpreted code, so Adobe is not able to deliver Flash Player in Safari on the iPhone without support from Apple," Adobe said in a statement.

Voltmer didn't comment on the state of present discussions with Apple to build Flash Player directly into the iPhone. But she did say people visit Adobe's Web site looking for it.

It's not immediately clear how easily Flash applications translate to the iPhone, and most folks won't get a chance to try it until the beta is released publicly later this year. There are some limitations, Voltmer said.

For one thing, the Flash software must be written in ActionScript 3, not the earlier ActionScript 2. For another, they can't use video because of Apple restrictions, she said.

There also could be practical limits on memory, processing power, and graphics. Last year's PC running Flash Player has a lot more computing capability than a modern iPhone 3GS.

The iPhone and iPod Touch have some features that are well-suited to mobile gaming, though, and programmers will be able to use them. That includes the multitouch interface and accelerometer that detects device orientation, said Adrian Ludwig, a Flash team member at Adobe.

Updated at 1:48 p.m. PDT with further comment from Adobe and no comment from Apple.

Adobe developer tools let Flash programmers turn their applications into native iPhone software. This is a Flash game called Chroma Circuit.

(Credit: Screenshot by Stephen Shankland/CNET)

Updated on October 5 at 2:00 p.m. PDT: adding information about support for iPhone

Adobe Systems has garnered the support of mobile heavy hitters such as Google, Motorola, Nvidia, Palm, RIM, and Qualcomm for its new Flash Player 10.1 software for smartphones, Netbooks, and other mobile devices. The company plans to announce the support Monday at its developer conference in Los Angeles.

Adobe's goal is to get Flash Player 10.1 accelerated directly on the chips in smartphones, Netbooks, and small laptops based on the ARM chip architecture, called smartbooks. To date, Flash video acceleration has not been available widely on mobile devices.

"It's critical to support in hardware because (Flash) video is really computationally intensive," Tom Barclay, Adobe senior product marketing manager for Flash Player, said in an interview. "Putting that on the hardware provides the ability to play it back fluidly...so you're not going to drain the battery on these devices."

Though Flash-based video is available on virtually all PCs, "the vast majority of mobile devices have been fundamentally closed," according to Barclay. "This means there is a single (device maker) or carrier or handset manufacturer that can stop technology from getting onto those devices. And that's one of the reasons why the Web as been so slow to be directly accessible from those devices."

Toward the end of getting Flash to run directly on small mobile devices, Adobe created the Open Screen Project. "The Open Screen project is about making more of those devices open. In particular, providing flash player for free in an open manner with the requirement that (device suppliers) make it open for developers," Barclay said.

Adobe also announced on Monday that Google has joined the Open Screen Project initiative. Handset manufacturers such as Motorola will ship Google Android based devices with Flash Player support "early next year," according to a Motorola statement. Companies such as Nvidia, Broadcom, Nokia, RIM, and ARM chip suppliers such as Qualcomm, are all participants in the Open Screen Project.

Conspicuous by its absence was Apple. "Flash is not available on the iPhone at this point," said Adrian Ludwig, group manager, flash platforms at Adobe. "So far, we haven't received the support that we need from Apple." (Note: Adobe announced Monday that programmers will be able to create native iPhone applications using Adobe's Flash Professional CS5 developer tool, currently in beta testing, then offer their programs as an Apple App Store download.)

Apple aside, this is all part of an aggressive push by Adobe to get acceleration on mobile devices. More than 75 percent of video on the Web is delivered through the Flash Player, according to Ludwig. "Having the Flash player on your device means you're able to access all the content out there on the Web," Ludwig said, referring to referring to such sites as YouTube, the video inside MySpace, and Facebook, as well as Fox News and CNN.

Games are also a target. Ludwig pointed to Flash-based games, such as Playfish and FarmVille, played on social-networking sites.

A public developer beta of Flash 10.1 is expected ... Read more