Corel CEO David Dobson. (Darren Brown, OBJ)

Corel Corp. chief executive David Dobson has said that a desire to "reconnect with his family" is the reason behind his stepping down after three years at the helm of the software company.

The company said in a statement that Mr. Dobson was leaving to take a "senior executive position at a U.S.-based Fortune 500 company."

"I am proud of all that Corel and our employees have accomplished over these past three years and I am honoured to have worked with some of the most talented and creative people in the software industry," stated Mr. Dobson. "While the decision to leave Corel was difficult, I believe that the opportunity before me is the right decision for me and my family. I thank Corel's Board of Directors for their support and am committed to supporting the Company through this transition process."

In an interview with the OBJ, Mr. Dobson said he had "mixed emotions" about leaving the company, although he noted that the timing was right for the move.

"When I joined, the mandate was very clear: I was asked to set a strategy to reposition the company in markets where there was greater potential for growth, increase profitability and revenues, to build a leadership team and to take the company public, and the company has been successful on all four fronts," he said.

"As I look back on these three years, I felt very good about that, so when the opportunity came forward recently, I felt ... that now is the time to take this opportunity, and it's the right decision for me and my family."

Mr. Dobson, who currently commutes weekly from his Toronto home to Ottawa and Corel's other offices around the world, said his new job would allow him to live in the same city as his family and "not have to commute to a different city by airplane every Monday morning."

Although he would not disclose where his new job would be, Mr. Dobson noted that there would be a "strong Ottawa connection" and that he and his wife and two sons would be relocating back to "a small New England town" in Connecticut.

Observers note that Mr. Dobson could well be moving back to his old stomping ground at IBM, due to the bellwether's connection with Ottawa's Cognos. Mr. Dobson joined Big Blue straight out of university and worked there for 19 years, until he took the helm at Corel.

The news comes as Corel Holdings, L.P. (CHLP), a subsidiary of Corel's majority shareholder Vector Capital Corp., is making a play to buy the software company, although analysts say CHLP's US$11-per-share bid undervalues Corel.

Corel's first-quarter revenues grew by 25 per cent to $65.5 million, and net losses narrowed close to break-even during the period, compared to a loss of $11.9 million a year earlier.

Vector is looking to buy the 31 per cent of Corel's outstanding common shares it doesn't already own, which would take the Ottawa-based software company private again after two public offerings, one of which was overseen by Mr. Dobson.

However, Mr. Dobson said there was "absolutely no connection" between the Vector bid and his resignation.

The company has begun looking for a new CEO, with no immediate word on who would serve as interim chief in Mr. Dobson's stead.

"We've built a strong leadership team ... so I'm confident the team is moving along and will manage very well," he said. "The timing now means the company is ready for its next leadership."

Corel said it has not firmed up the timing of Mr. Dobson's departure from the company, but said it is expected to take place before the end of June 2008.

The company's shares dipped by 1.74 per cent at 10:43 a.m. on the Nasdaq following the news, falling to $10.75.

To read more about David Dobson's life and times at the company, click Dobson ushers in new era for Corel with quiet confidence for a profile of the outgoing Corel CEO.