These days, Adobe Systems is on a roll. The San Jose, Calif.-based software company best known for having developed technology that allows PDF (Portable Document Format) documents to be exchanged around the world, has had the most profitable quarter in its history. In March, the company announced first quarter revenues for fiscal 2004 were $423.3 million, compared with $296.9 million in the same period last year. With a revised revenue target of $1.5 billion for this year, Adobe Systems has come a long way since it was founded in 1982 by two alumni of the Xerox Palo Alto Research Center, John Warnock and Charles Geschke.
During the past two decades Adobe Systems' products have had a major impact on business processes in several industries. Its PostScript printer language, first shipped in printers by Apple and QMS in 1985, revolutionized digital typesetting and made desktop publishing possible. In 1993, Adobe's Acrobat software introduced PDF. Other products, such as Photoshop, won lots of loyal customers.
But brilliant technology does not necessarily create a successful business. By mid-1998 -- when most other technology companies were booming -- Adobe was in trouble, experiencing stalled product sales and a sagging stock price. As part of a major corporate overhaul in August 1998, most of Adobe's executive management left the company, and Bruce R. Chizen was promoted to executive vice president, products and marketing. Chizen led a drastic restructuring of Adobe's business, including instituting several rounds of layoffs and defending the company from a hostile takeover attempt by rival Quark. In 2000 Chizen was named the company's president and CEO.
Now Chizen is hoping to remake Adobe again -- betting that by combining the core electronic document capabilities of its Acrobat products with a new collection of server-based products, Adobe Systems can become a major supplier of application solutions to enterprise businesses. Last month Knowledge@Wharton editors met with Chizen to discuss past challenges, competitive strategy against rivals such as Microsoft, and future plans.
[continue]
Page 1 of 14
> >>