Avid Announces Record First Quarter Revenue.Business/Technology Editors TEWKSBURY, Mass.--(BUSINESS WIRE)--April 19, 2001 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. (Nasdaq: AVID) today reported its financial results for the quarter ended March 31, 2001. Revenues for the first quarter were $118.1 million, an increase of 9% over the $108.7 million reported in the first quarter of 2000. Net loss for the quarter was $10.5 million or $.41 per share including amortization of acquisition-related intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and other costs, net. Excluding acquisition-related amortization and restructuring and other costs, net, Avid would have reported net income of $2.3 million or $.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the first quarter of 2001. This compares to net income excluding acquisition-related amortization of $336,000 or $.01 per diluted share for the first quarter of 2000. Commenting on the results, David Krall, Avid's president and chief executive officer said, "We are very pleased with this quarter's financial results. In what is historically our slowest quarter, we increased revenues, improved gross margins and enhanced our overall profitability. In fact, $118.1 million is the highest first quarter revenue in Avid's history." "There were also several significant product developments during the quarter," continued Krall. "We began shipping Avid(R)|DS HD which offers a complete range of editing and compositing tools for conforming and finishing uncompressed High Definition as well as standard definition projects. The introduction of this product enables us to sell into the growing market for High Definition content creation." "We also began shipping SOFTIMAGE(R)|XSI XSI - X/Open System Interface (TM) v1.5," Krall said. "This system builds on the previous version by adding a host of new and improved features. We continue to believe that 3D plays an important role in Avid's overall "Big Picture" strategy of delivering end-to-end solutions (jargon) end-to-end solution - (E2ES) A term that suggests that the supplier of an application program or system will provide all the hardware and/or software components and resouces to meet the customer's requirement and no other supplier need be involved. Compare: turn-key solution. for our customers. For our audio customers, we began shipping Digidesign(R) Pro Tools(R) version 5.1 software. This latest version provides surround sound An audio recording and playback system that uses five or more channels plus a subwoofer channel. See 5.1 channel and 3D audio. authoring and supports the new Control|24(TM) integrated digital mixing surface. And, we went live with the AvidProNet(TM) online Review & Approval(TM) service, which is the first Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the browser-based application for frame-accurate review and approval of video content." Krall concluded, "The first quarter also marked major strides for Avid's Broadcast business. We acquired the remaining stake in iNews. We formed a group within Avid Media Solutions dedicated to developing integrated, end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. broadcast solutions. And we completed an installation at WKYC in Cleveland, Ohio "Cleveland" redirects here. For the Cleveland metropolitan area, see . For other uses, see Cleveland (disambiguation). Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. , as they converted from analog to an all-digital news environment. We are beginning to see the return on last year's investments in Broadcast." Avid will be highlighting the WKYC installation at the upcoming National Association of Broadcasters conference. At NAB, Avid will also be demonstrating new and exciting aspects of its integrated workflow The automatic routing of documents to the users responsible for working on them. Workflow is concerned with providing the information required to support each step of the business cycle. for both broadcast and professional post production, as well as rolling out very competitive and affordable offerings in the low-cost new media market. Conference Call A conference call to discuss Avid's first quarter 2001 financial results will be held today at 5:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The call will be open to the public. The conference call can be accessed by dialing 800-314-7867 and referencing confirmation code 494384. The call and subsequent replay will also be available on Avid's Web site. To listen via this alternative, go to the investor relations Investor relations The process by which the corporation communicates with its investors. page at www.avid.com for complete details 10-15 minutes prior to the start of the conference call. About Avid Technology, Inc. Avid Technology, Inc. delivers the solutions that Make, Manage and Move Media(TM). As a recognized digital standard for professionals who Make the world's media--from video, audio and film to animation, special effects special effects, in motion pictures, cinematographic techniques that create illusions in the audience's minds as well as the illusions created using these techniques. and streaming media--Avid's products are used to make more television and news shows, commercials, music videos and CDs, corporate/industrial productions and major motion pictures combined than any other nonlinear editing See nonlinear video editing. manufacturer in the world. Now, building on its Oscar(R) and Emmy(R) award-winning heritage in creating content, Avid is extending its reach by redefining how digital media is shared, stored and distributed. To Manage today's increasingly rich collection of dynamic media, Avid provides powerful servers, networks and media tools to help customers search files, share media and collaborate on new productions, both locally and globally. Avid's solutions also empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems users to easily Move media, whether on air, over cable or satellite or through the Internet. Like no other media company today, Avid's end-to-end solutions span the continuum Continuum (pl. -tinua or -tinuums) can refer to:
The above release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , as defined by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1996, including statements about the results of operations during the second quarter of 2001 and beyond. There are a number of factors that could cause actual events or results of operations to differ materially from those indicated by such forward-looking statements, such as market acceptance of Avid's products and the other factors set forth under the caption "Certain Factors That May Affect Future Results" in Avid's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2000 and other filings with the Securities and Exchange Commission. (c) 2001 Avid Technology, Inc. All rights reserved. Product specifications are subject to change without notice. Avid, Digidesign, Pro Tools and Softimage are registered trademarks and AvidProNet, Control|24, Make, Manage and Move Media, Review & Approval and XSI are trademarks of Avid Technology, Inc. iNEWS is a trademark of iNews, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . Oscar is Oscar I, 1799–1859, king of Sweden and Norway (1844–59), son and successor of Charles XIV. His reign was one of social and economic advance. His book on the reform of criminal law and prisons had wide influence. Oscar was succeeded by his elder son, Charles XV. a registered trademark and service mark of the Academy of Motion Picture Arts and Sciences. Emmy is a registered trademark of ATAS/NATAS. All other trademarks contained herein are the property of their respective owners.
AVID TECHNOLOGY, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
2001 2000
(unaudited) (unaudited)
Net revenues $ 118,133 $ 108,696
Cost of revenues 56,513 53,258
Gross profit 61,620 55,438
Operating expenses:
Research and development 23,273 19,445
Marketing and selling 29,746 28,539
General and administrative 6,967 6,912
Restructuring and other costs, net 364 --
Amortization of acquisition-related
intangible assets 12,420 19,800
Total operating expenses 72,770 74,696
Operating loss (11,150) (19,258)
Interest and other income, net 1,496 1,044
Loss before income taxes (9,654) (18,214)
Provision for income taxes 800 1,250
Net loss ($ 10,454) ($ 19,464)
Net loss per common share -
basic and diluted ($ 0.41) ($ 0.81)
Weighted average common shares
outstanding -
basic and diluted 25,348 24,065
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2001 2000
ASSETS: (unaudited)
Current assets:
Cash and marketable securities $ 65,055 $ 83,206
Accounts receivable, net of allowances
of $11,595 and
$11,384 at March 31, 2001 and
December 31, 2000, respectively 91,143 90,047
Inventories 24,446 21,102
Prepaid and other current assets 13,794 11,750
Total current assets 194,438 206,105
Property and equipment, net 27,059 26,136
Acquisition-related intangible assets 21,912 30,316
Other assets 2,708 3,925
Total assets $246,117 $266,482
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 24,686 $ 28,775
Accrued expenses 47,096 55,962
Deferred revenue and other current
liabilities 30,566 24,783
Total current liabilities 102,348 109,520
Long term liabilities, less current
portion 13,595 13,449
Purchase consideration 2,689 5,663
Total stockholders' equity 127,485 137,850
Total liabilities and stockholders'
equity $246,117 $266,482
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