Avid Announces Record First Quarter Revenue.
TEWKSBURY, Mass.--(BUSINESS WIRE)--April 19, 2001
Avid Technology, 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 and restructuring 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 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(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 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 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 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 broadcast solutions. And we completed an installation at WKYC in Cleveland, Ohio, 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 for both broadcast and professional post production, as well as rolling out very competitive and affordable offerings in the low-cost new media market.
A conference call to discuss Avid's first quarter 2001 financial results will be held today at 5:00 p.m. 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 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 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 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 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 of media creation, management and distribution. The company's corporate headquarters are located in Tewksbury, MA. More information about the company is available at www.avid.com.
The above release includes forward-looking statements, as defined by the Private Securities Litigation Reform Act 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 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. Oscar is 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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|Date:||Apr 19, 2001|
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