From the Desk of Irwin Michael – September 30, 2016: Adobe Systems Inc. On September 20th, ABC Funds’ holding, Adobe Systems Inc., reported impressive third quarter 2016 financial results, exceeding analyst expectations on both the top and bottom line. Adobe develops and markets various software products, digital services, and technologies, which are of great value to businesses, freelancers, and everyday consumers. It appears that the company has proven itself as the definitive leader in the digital media and content creation space. We are bullish on Adobe for a number of reasons. Firstly, the company has a strong track record of steadily increasing revenues, operating income, and margins. Interestingly, Adobe has reported positive revenue growth for ten consecutive quarters with their third quarter being no exception, as the company’s revenues rose by over 20% compared to the previous year. Secondly, Adobe’s Creative Cloud segment has been very successful. Through Creative Cloud, Adobe’s $50/month cloud computing platform, Adobe offers users full access to its vast library of creative desktop and mobile applications, which includes popular products such as Photoshop, Premiere Pro, Illustrator, and Dreamweaver. This subscription also offers additional perks, including cloud storage and file sharing. This segment achieved revenue growth of 39% year-over-year, fueled by increased subscriptions and an expanded product offering. Finally, in its recent earnings release, Adobe confirmed our positive outlook on the company by raising its Q4 and full year earnings guidance, as they expect another strong quarter. Irwin A. Michael, President I.A. Michael Investment Counsel Ltd.