Business Tech

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

As the CEO of Adobe Systems, Bruce Chizen was credited with turning that company into a software powerhouse. Now Chizen will bring his experience to a new role as a venture partner for Voyager Capital, a top venture capital firm.

Bruce Chizen

(Credit: Adobe Systems)

Voyager Capital invests mostly in start-ups involved with early-stage digital media, software and servers, wireless, and Web infrastructure. Previously a member of Voyager's advisory board, Chizen will expand his role by working with budding technology entrepreneurs in the areas of digital media and software.

"Bruce possesses a rare combination of valuable market insight and senior business experience," said Bill McAleer, managing director at Voyager Capital. "His strong industry reputation, connections, and background in digital media and software will benefit our ventures."

Chizen made his mark in the industry as CEO of Adobe. After six years with the company, he took over the CEO reins from co-founder John Warnock in late 2000.

During his tenure, Chizen was the driving force behind Adobe's expansion into new markets. He oversaw the growth of the company's customer base beyond the graphic arts niche into the enterprise and general consumer arenas. He helped transform Adobe from a software vendor into a platform company, branching out onto the Web and open source, among other areas.

With Chizen at the helm, Adobe made some key deals, notably the acquisition of Macromedia in 2005.

After having tripled Adobe's revenues as CEO, Chizen exited the company in late 2007, placing it in the hands of then president and now CEO Shantanu Narayen. In an interview with CNET News, Chizen spoke about his decision to leave Adobe at the time.

Prior to his role at Adobe, Chizen served in several executive positions at Claris. He also worked in the merchandising group at Mattel Electronics and as a regional sales director at Microsoft.

Adobe said on Tuesday that it has reached a deal to acquire Web analytics firm Omniture for $1.8 billion, or $21.50 per share.

That represents a 45 percent premium to Omniture's average closing price for the last 30 days, Adobe noted in its press release. Omniture, which was started in 1996, has about 1,200 employees and took in just under $300 million in the 12 months ending Dec. 31.

Adobe CEO Shantanu Narayen called the move a "game changer" for the company.

"Adobe customers are looking to us for solutions to deliver engaging experiences and more effectively monetize their content and applications online," Narayen said in the press release announcing the deal.

The two companies said the deal is expected to close during Adobe's fourth quarter and is subject to government approvals. Omniture will become a new unit within Adobe, with Omniture CEO Josh James continuing to lead the business as an Adobe senior vice president. Adobe said the deal should add to earnings in fiscal 2010.

Update 1:45 p.m. PT: In an interview, Adobe senior vice president Paul Weiskopf said the deal will allow Adobe to merge the "art" of developing and delivering content with the "science" of measuring the impact of that content.

"Today that's a real pain point for customers," Weiskopf said. "We have the opportunity to integrate what is today a pretty disparate and not tightly integrated set of workflows."

The deal is the company's largest since its $3-billion-plus acquisition of Macromedia, announced in April 2005.

Weiskopf declined to discuss how long the deal had been in the works or whether there will be any job cuts once the deal goes through, although the company has a conference call slated to start at 2 p.m. PT and will also file additional details with the Securities and Exchange Commission as part of its tender offer to acquire Omniture's shares.

Update 2:15 p.m. PT: Adobe's executives are now on a conference call talking about the deal, as well as the company's most recent quarterly results.

However, there has been nothing too earth-shattering thus far.

Adobe Systems on Thursday released a beta version of a file format called CinemaDNG the company hopes will simplify higher-end digital video processes and improve its quality.

The company behind Photoshop has developed a technology for still cameras called DNG, short for Digital Negative, and is trying to standardize it to encourage broader adoption. CinemaDNG takes the technology and applies it to video

For higher-end cameras such as SLRs, DNG records the raw data from the image sensor with no in-camera processing. That means there are no compression artifacts, no sharpening or contrast filters applied, no camera assumptions made about lighting conditions such as shady or sunny, and no discarding of richer 12-, 14-, or even 16-bit data in the conversion to 8-bit JPEG. The drawback to this flexibility and quality is that images require processing before they can be viewed.

CinemaDNG is comparable, according to the Adobe Labs description, including Adobe's hope to provide an alternative to proprietary raw formats.

"In many digital cinematography workflows, captured content is processed by software and hardware in the camera before it is saved to a storage device--and assumptions made during this processing could irrevocably damage the original imagery. Cinema DNG avoids these problems by capturing raw digital data directly from the camera's sensor, giving artists the power to make qualitative judgments after imagery has been saved to disk," Adobe said.

Other companies supporting CinemaDNG are Fraunhofer, Gamma & Density, Ikonoskop, Indiecam, Iridas, MXF4mac, RadiantGrid, Synthetic Aperture, The Foundry, Vision Research, and Weissc.

Adobe also released software to let its video-editing software import CinemaDNG files.

"Adobe and other industry participants have finalized the CinemaDNG specification and Adobe has made CinemaDNG plug-ins for Adobe After Effects CS4 and Adobe Premiere Pro CS4 software available online on Adobe Labs," the company said in a series of announcements at the 2009 IBC trade show in Amsterdam.

Adobe also announced beta testing of a new project, Adobe Story for writing scripts.

"Scriptwriting typically goes through several phases: initial outline, several drafts, final draft, shooting script and creation of a production shot list that accompanies the final script. Adobe Story is designed to help simplify and accelerate this process for virtually any creative endeavor," Adobe said. Scripts in a variety of other formats can be imported into the software.

And the San Jose, Calif.-based software company announced Flash Access 2.0, digital rights management technology that can control which individuals or devices are permitted to view online video. "Flash Access 2.0 now supports output protection, enabling content providers to specify requirements for protection of analog and digital outputs, providing additional safeguards against unauthorized recording," the company said.