Adobe replaces CEO Chizen, projects strong quarter

Adobe on Monday said it will replace its long-time chief operating officer Bruce Chizen and said that it expects strong fourth quarter revenue results along with 13 percent growth in fiscal 2008. The company said that its Board of Directors has appointed current president and chief operating officer Shantanu Narayen as its president and chief executive officer, effective December 1, 2007 and that Narayen will also join Adobe’s Board of Directors at that time. Narayen replaces Chizen (pictured at right), who will serve the remainder of his term on Adobe’s Board of Directors through the Spring of 2008 and continue in a strategic advisory capacity through the end of fiscal year 2008, according to the company.

In addition to the CEO change, Adobe's outlook was for the fourth quarter and beyond was rosy. The company said it expects to achieve results near the high end of its fourth quarter revenue target range of between $860 million and $890 million. For fiscal year 2008, Adobe announced it is targeting annual revenue growth of approximately 13 percent. The company plans to report its fourth quarter and fiscal 2007 year-end results on December 17, 2007 after the market closes.

“Bruce Chizen’s vision has helped transform Adobe from a company that was known mainly for its popular design products into one of the largest and most diversified software companies in the world,” said Chuck Geschke and John Warnock, Adobe’s chairmen of the Board of Directors. “We thank him for his outstanding leadership and contributions to Adobe’s success during his entire 14 years at Adobe and the past seven as CEO.”

The company said that Narayen’s promotion reflects Adobe’s strategy to ensure a planned succession of the company’s senior leadership.

“Shantanu’s extensive knowledge of our products and platforms, customer experience and exceptional operational leadership make him the ideal choice to lead Adobe as CEO,” said Chizen. “For me personally, the time is right for a transfer of leadership and I look forward to supporting Shantanu as he takes on his new responsibilities.”

In his current role as president and COO, Narayen leads the company’s day-to-day global operations; sets Adobe’s long-term market strategies; and oversees all product research and development, worldwide sales, corporate strategy and investments, and corporate and product marketing. Together with Chizen, Narayen spearheaded the acquisition of Macromedia, Inc. in 2005, expanding Adobe’s software platform and solutions and strengthening the company’s presence in key markets ranging from video to enterprise software to mobile solutions.

"I am honored to assume the leadership of Adobe and to continue to carry on the legacy of Bruce and our founders, John and Chuck,” said Narayen. "I look forward to continuing Adobe’s tradition of technology leadership and innovation, and helping the company achieve its next phase of growth.” Shantanu Narayen Background

Narayen joined Adobe in January 1998 as vice president and general manager of Adobe’s engineering technology group. In January 1999, he was promoted to senior vice president, worldwide products and later in March 2001 was promoted to executive vice president, worldwide product marketing and development. Most recently, Narayen in January 2005 was promoted to president and chief operating officer. Prior to joining Adobe, Narayen co-founded Pictra Inc., a digital photo sharing software company, in 1996 and held various senior positions at Apple.

Last week the company promised a beta version of Photoshop Express will be available by the end of the year and said that a full version will follow sometime in 2008. Express is an online edition of the company's photo editing software, entirely controlled via web browsers.

Filed under: industry