March 24, 2006
Adobe’s Chizen Keeps His Chin Up
Source: Forbes
Written by Danit Lidor
New York – Bruce Chizen, chief executive of Adobe Systems since 2000, recently led his company through an eight-month, $3.4 billion acquisition of Web design software company Macromedia. Legal concerns about an industry monopoly were eventually dismissed, and the deal was finalized in December 2005.
On Thursday, Chizen and other Adobe (nasdaq: ADBE – news – people ) executives announced the first post-merger earnings numbers. Though revenue rose 39% to $655 million, profit plummeted to 17 cents per share, down from 31 cents per share a year earlier. Costs related to the Macromedia (nasdaq: MACR – news – people ) acquisition and the subsequent increase in the number of shares outstanding explain some of the decrease, but it’s worth noting that on absolute dollar terms, net income fell by nearly $50 million.
Chizen has repeatedly warned that Adobe’s third-quarter results will be weak, although he continues to stand by the company’s projected annual revenue of $2.7 billion.
No matter what, Chizen will have his hands full in the coming months as he tries to guide the company into the future while simultaneously digesting Macromedia. There is a lot riding on the highly anticipated new products and software bundles integrating the best of Photoshop, Acrobat and Flash.
Chizen recently chatted with Forbes.com about his plans for the mobile and non-PC space, and the possibility of specialized versions of Photoshop and Acrobat for specific industries.