Avid Posts Strong Fourth Quarter Results.Business Editors/High-Tech Writers TEWKSBURY, Mass.--(BUSINESS WIRE)--Jan. 30, 2003 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 improved top- and bottom-line results for the fourth quarter ended December 31, 2002. Revenues for the quarter were $112.8 million versus $104.8 million in the corresponding quarter in 2001, an increase of approximately eight percent. Net income for the quarter was $4.3 million or $.15 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 compared to net income of $1.3 million or $.05 per diluted share for the fourth quarter of 2001. Included in the fourth quarter of 2002's results is a $3.2 million non-recurring charge related to vacating real estate subject to long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. leases, principally in the San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden market. Excluding this charge, and acquisition-related amortization of $293,000, Avid would have reported net income of $7.8 million or $.28 per diluted share for the fourth quarter of 2002. "The numbers really tell the story this quarter," said David Krall, Avid's president and chief executive officer. "For the third quarter in a row, Avid delivered significant bottom-line improvement. We grew top-line revenue over Q4 of last year, and we ended 2002 with a stronger balance sheet. We believe our solid performance is a continuing reflection of the strategy we first put in place nearly three years ago, and provides a very firm foundation on which to build in 2003." Contributing to the improvement in the company's fourth quarter results was an increase in gross margin to 52.4% compared to 49.3% for the fourth quarter of 2001. The increase was due to higher margins in the video segment of the business, primarily reflecting changes in product mix, a stronger Euro and lower discounting. For the year ended December 31, 2002, revenues were $418.7 million compared to $434.6 million for 2001. Net income for 2002 was $3.0 million or $.11 per diluted share compared to a net loss of $38.1 million or $1.49 per share for 2001. Excluding 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 and acquisition-related amortization, Avid would have reported net income of $7.1 million or $.26 per diluted share for 2002 compared to net income of $1.3 million or $.05 per diluted share for 2001. Avid strengthened its financial position during 2002. Cash and 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 increased from $73 million at year-end 2001 to $89 million at year-end 2002 and the company reduced its long-term liabilities Long-Term Liabilities Recorded on the balance sheet, a company's liabilities for leases, bond repayments and other items due in more than one year. Notes: A company's long-term liabilities are accounted for by its debt obligations to other parties which last longer than from $13 million to $1.4 million by prepaying a note in the first quarter. In addition, stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased from $104.8 million as of December 31, 2001 to $123.6 million as of December 31, 2002. Conference Call A conference call to discuss Avid's fourth quarter 2002 financial results and the company's outlook for 2003 will be held today at 5:00 p.m. ET. The call will be open to the public. The conference call can be accessed by dialing (913) 981-5520 and referencing confirmation code 253216. The call and subsequent replay will also be available for a limited time 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. 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 Avid's financial outlook, products and functionality, and size and growth of existing markets. 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, further weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of worldwide economic conditions and the
other factors set forth under the caption "Certain Factors That May
Affect Future Results" in Avid's Form 10-Q Form 10-QSee 10-Q. for the quarter ended September 30, 2002 and other filings with the Securities and Exchange Commission. In addition, any forward-looking statements contained herein represent Avid's estimates only as of today and should not be relied upon as representing the company's estimates as of any subsequent date. While Avid may elect to update forward-looking statements at some point in the future, Avid specifically disclaims any obligation to do so, even if the estimates change. 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 See streaming audio, streaming video and digital media hub. -- 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. Building on its award-winning heritage, which includes several Emmy(R) awards as well as an Oscar(R) statuette representing the 1998 Scientific and Technical Award for the concept, design and engineering of the Avid Film Composer(R) systems for motion picture editing, 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 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 . Like no other media company today, Avid's 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. span the continuum Continuum (pl. -tinua or -tinuums) can refer to:
(C) 2003 Avid Technology, Inc. All rights reserved. Avid, Make, Manage and Move Media, and Film Composer are either registered trademarks or trademarks of Avid Technology, Inc. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and/or other countries. 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 Year Ended
December 31, December 31,
2002 2001 2002 2001
(unaudited)(unaudited)
Net revenues $112,784 $104,790 $418,719 $434,638
Cost of revenues 53,708 53,099 207,236 213,572
Gross profit 59,076 51,691 211,483 221,066
Operating expenses:
Research and development 21,201 21,355 82,346 86,140
Marketing and selling 25,343 24,173 100,761 113,053
General and administrative 4,834 5,615 19,819 23,313
Restructuring and other
costs, net 3,250 (281) 2,923 8,268
Amortization of
acquisition-related
intangible assets 292 528 1,153 31,168
Total operating expenses 54,920 51,390 207,002 261,942
Operating income (loss) 4,156 301 4,481 (40,876)
Interest and other income
(expense), net 410 1,533 218 5,529
Income (loss) before income taxes 4,566 1,834 4,699 (35,347)
Provision for income taxes 300 500 1,700 2,800
Net income (loss) $4,266 $1,334 $2,999 ($38,147)
Net income (loss) per common
share - basic $0.16 $0.05 $0.11 ($1.49)
Net income (loss) per common
share - diluted $0.15 $0.05 $0.11 ($1.49)
Weighted average common shares
outstanding - basic 26,738 25,895 26,306 25,609
Weighted average common shares
outstanding - diluted 28,268 26,451 26,860 25,609
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2002 2001
ASSETS:
Current assets:
Cash and marketable securities $89,034 $72,961
Accounts receivable, net of allowances of
$10,614 and $11,497 at December 31, 2002
and 2001, respectively 65,942 78,010
Inventories 38,047 21,690
Prepaid and other current assets 11,919 10,857
Total current assets 204,942 183,518
Property and equipment, net 25,731 27,164
Acquisition-related intangible assets 2,645 3,462
Other assets 2,485 1,662
Total assets $235,803 $215,806
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $24,297 $19,076
Accrued expenses and other
current liabilities 51,032 50,080
Deferred revenue 35,483 28,872
Total current liabilities 110,812 98,028
Long term liabilities, less current portion 1,427 13,020
Total stockholders' equity 123,564 104,758
Total liabilities and
stockholders' equity $235,803 $215,806
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