This is a partial transcript from Your World with Neil Cavuto, March 14, 2002. Click here for complete access to all of Neil Cavuto's CEO interviews.
NEIL CAVUTO, HOST: Software maker Adobe Systems (ADBE) getting a boost today after announcing that it is doing just fine among some of the tattered technology stocks. Their outlook remains good even as the competition in the tech industry heats up. Joining me now from Mountain View, California, Adobe CEO Bruce Chizen. Bruce, good to have you back.
BRUCE CHIZEN, CEO, ADOBE SYSTEMS: Good afternoon, Neil.
CAVUTO: Good numbers. I want to switch, if you don't mind, Bruce, on this whole accounting issue. Have you, given what has been happening with Arthur Andersen — I know you don't use them. I think you use KPMG, right?
CHIZEN: That's correct.
CAVUTO: Have you changed your standards for looking at these guys as a result?
CHIZEN: No. Fortunately, we have always had a policy of complete and full disclosure. So, what we're finding is a lot of other companies are beginning to imitate what we've been doing all along. We always report at both performer and gap earnings and revenue. So, the things that Enron didn't do and other companies haven't been doing, we've been doing all along.
CAVUTO: Now, In KPMG's case, do you use them for consulting and accounting work?
CHIZEN: They are predominantly for auditing and they have done a little bit of consulting around security, but certainly not in an area that conflicts with what they do. And the audit committee, which is certainly independent from management, reviews any of the consultings projects before they get started.
CAVUTO: All right. Thanks for indulging me those questions, Bruce. Back to you and what's been happening. You are flying in the face of some people saying, well, technology has hit sort of like some turbulence here. You're arguing pretty much going forward, not only after a good quarter, that you see it kind of continuing. Why, where, how?
CHIZEN: Well, we think the markets in which we participate in have stabilized. So, I'm not going to be bold enough to say that they have turned around. But it's a much better situation than we were experiencing three months ago.
CAVUTO: So, wait a minute, Bruce. You're not seeing it getting worse, in other words?
CHIZEN: That's correct. We don't see it getting any worse. We think it is about the same. What is really driving our business are the new products and the upgraded products.
CAVUTO: Now, let me ask about some of those upgraded products, because a lot of them tell you about the strength of the PC industry. If I am to read that correctly, the PC industry looks OK.
CHIZEN: I think a lot of people are still buying computers to be more productive. And even those who are not buying necessarily new computers, they are buying software to increase their productivity and become more efficient. I look at our Acrobat business, which is about moving from paper-based processes to web-based processes, that business last quarter grew 20 percent.
CAVUTO: So, from your perspective, these people who are kind of hanging crepe on the industry, you say much ado about nothing?
CHIZEN: That's correct.
CAVUTO: OK. Bruce...
CHIZEN: Again, you know, a lot of it has to do with Adobe and its product life cycle. The fact that we have a new version of PhotoShop coming in this quarter, in Q2, is going to have a major impact on our business...
CAVUTO: Bruce, always a pleasure.
CHIZEN: ... which has nothing...
CAVUTO: Go ahead. Which is good.
CAVUTO: OK. Bruce, thank you very much. Bruce Chizen of Adobe Systems.
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