AVID TECHNOLOGY REPORTS REVENUES OF $98.4 MILLION FOR SECOND QUARTER 1995.TEWKSBURY, Mass.--(BUSINESS WIRE)-- July 26, 1995--Avid Technology, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AVID) today reported revenues of $98.4 million for the second quarter ended June 30, 1995, an increase of 87 percent over $52.6 million recorded in the second quarter of 1994. Both periods include the results of Digidesign, Inc., which was acquired on January 5, 1995. Earnings per share in the second quarter of 1995 were $0.31, an increase of 29 percent over $0.24 in the same period of 1994. For the six month period ended June 30, 1995, revenues were $182.3 million, an increase of 88 percent over the first six months of 1994. Revenues for the first six months of 1994 were $96.9 million. Reflecting the effects of a one-time charge incurred in the first quarter in connection with Avid's acquisitions of Digidesign, Inc., Elastic elastic Of or relating to the demand for a good or service when the quantity purchased varies significantly in response to price changes in the good or service. Reality, Inc. and Parallax Software Parallax Software was a game developer who created the Descent series. Parallax Software was started by Matt Toschlog and Mike Kulas. After the release of Descent II, the company was split in two to form Volition, Inc. , earnings for the first six months of 1995 declined 31 percent to $0.27 per share from $0.39 per share in the comparable period of 1994. Excluding this one-time charge, earnings for the first months of 1995 were $0.51 per share. Gross margin for the second quarter of 1995 was 52.1 percent, compared to 51.6 percent in the first quarter of 1995 and 53.6 percent in the second quarter of 1994. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 8.7 percent in the second quarter of 1995, compared to 6.2 percent in the prior quarter (excluding merger costs of $5.5 million) and 11.0 percent in the same quarter in 1994. Curt Rawley, Avid's President and Chief Executive Officer noted, "We were pleased with the reception our products had at the National Association of Broadcasters (NAB) convention and trade show in April. Customers demonstrated particularly strong interest in our Media Spectrum high-end online suite and CamCutter disk-based, field news recorder; as well as in our multi-camera option for the Film Composer and Media Composer products; the real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. 3D DVE See digital video effects. option for the Media Composer; and our all-digital, server-based newsroom system. Results in the second quarter of 1995 were affected by increases in research and development spending for these as well as other products. Total R&D spending in the second quarter of 1995 was $13.1 million, or 13.3 percent of revenues, compared to $5.7 million in the second quarter of 1994, or 10.9 percent of revenues." Mr. Rawley added, "We expect to continue to see a high level of R&D spending for the next three to four quarters as we develop, introduce and refine these new offerings and as we shift our products to the emerging PCI bus PCI bus - Peripheral Component Interconnect standard. Our focus during the balance of the year will be to manage our expense levels so that we can achieve both our strategic and financial objectives." Cash and short-term marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has as of June 30, 1995 was $28.7 million, compared to $42.3 million at March 31, 1995. Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying increased to $70.3 million from $57.2 million at March 31, 1995, and days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). (DSO See CSO. ) increased to 64 days from 61 days. Inventories grew to $44.4 million from $41.1 million in the prior quarter, but inventory turns improved to 4.3 from 4.0 in the first quarter of 1995. At June 30, 1995 other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. were $16.8 million, compared to $12.4 million at March 31, 1995 and net property and equipment was $37.2 million as compared to $30.5 million at March 31, 1995. Jonathan Cook Jonathan Cook (born in 1965 in Buckinghamshire, England) is a British freelance journalist based in Nazareth, Israel, who has published in The Guardian, The Observer, ZNet, Electronic Intifada, CounterPunch , Avid's Chief Financial Officer commented, "During the quarter, our requirements to cover receivable and inventory needs grew roughly in line with our revenue growth. However, we undertook a substantial expansion of our capacity with the build-out of a new 190,000 square foot leased facility adjacent to our existing Tewksbury headquarters. We are consolidating our east coast engineering and manufacturing in this facility. The build-out is reflected in both the increase in other current assets and in the property and equipment accounts. Avid will be reimbursed for approximately $5 million that it has incurred in leasehold improvements Leasehold Improvement Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. , which is included in other current assets, by the landlord later this year. The increase in property and equipment was also affected by growth in engineering and in field operations, especially in Asia and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. ." -0- Avid Technology "Avid" redirects here. For the "Advancement Via Individual Determination" educational program, see AVID. Avid Technology, Inc NASDAQ: AVID is an American company specializing in video and audio production technology; specifically, digital non-linear media editing (NLE) , Inc., headquartered in Tewksbury, Massachusetts Tewksbury (pronounced IPA: /ˈtʊksbɛriː, ˈtʊksbriː/) is a town in Middlesex County, Massachusetts, United States. The population was 28,851 at the 2000 census. , is an international developer and supplier of comprehensive solutions for capturing, creating, editing, and distributing digital media. Avid is a pioneering developer of nonlinear A system in which the output is not a uniform relationship to the input. nonlinear - (Scientific computation) A property of a system whose output is not proportional to its input. film, video and audio editing Audio editing is the process of taking recorded sound and changing it directly on the recording medium (analog) or in RAM (digital). Audio editing was a new technology that developed in the middle part of the 20th century with the advent of magnetic tape recording. software and hardware and networking technologies for applications ranging from desktop video and post production to broadcast news. Avid's products are sold through direct sales offices and a network of distributors and resellers around the world. Avid, Film Composer and Media Composer are registered trademarks and CamCutter and Media Spectrum are trademarks of Avid Technology, Inc. All other trademarks contained herein are the property of their respective owners. -0- AVID TECHNOLOGY, INC. Condensed Consolidated Statements of Operations (in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
(Unaudited) (Unaudited)
Net revenues $98,447 $52,618 $182,342 $96,868 Cost of revenues 47,143 24,434 87,711 44,597 Gross profit 51,304 28,184 94,631 52,271
Operating expenses:
Research and
development 13,141 5,738 25,350 11,342
Marketing and selling 25,449 13,712 47,107 26,540
General and
administrative 4,110 2,963 8,344 5,456
Merger costs 5,456
Total operating
expenses 42,700 22,413 86,257 43,338
Operating income 8,604 5,771 8,374 8,933 Interest income, net 408 393 773 835 Income before income taxes 9,012 6,164 9,147 9,768 Income taxes 2,882 1,812 3,975 2,950 Net income $6,130 $4,352 $5,172 $6,818 Net income per common share $0.31 $0.24 $0.27 $0.39 Weighted average common and common equivalent shares outstanding 19,989 17,757 19,059 17,684 -0- AVID TECHNOLOGY, INC. Condensed Consolidated Balance Sheets (in thousands)
June 30, December 31,
1995 1994
(unaudited)
ASSETS
Current assets:
Cash and marketable securities $28,713 $36,670
Accounts receivable, net of
allowances of $5,401 and $3,155
in 1995 and 1994, 70,290 54,805
respectively
Inventories 44,350 32,401
Other current assets 16,769 14,555
Total current assets 160,122 138,431
Investments in marketable
securities 15,221
Property and equipment, net 37,247 26,377
Other assets 4,921 2,145
Total assets $202,290 $182,174
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
expenses $35,667 $34,630
Deferred revenue and other
current liabilities 22,722 17,288
Total current liabilities 58,389 51,918
Notes payable 1,758 2,369
Total stockholders' equity 142,143 127,887
Total liabilities and
stockholders' equity $202,290 $182,174
CONTACT: Avid Technology Scott Higgins Scott Higgins (born June 9, 1976 in Cairns, Queensland, Australia) is an Australian football (soccer) player who plays as a goalkeeper. His career has seen has seen him play in three different continents, first in his native Australia and then on to Europe and the Middle , 508/640-3563 or Julie O'Brien, 508/640-3071 |
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