Avid Reports Best-Ever First Quarter Revenues and Net Income.TEWKSBURY Tewksbury, town (1990 pop. 27,266), Middlesex co., NE Mass.; settled 1637, set off from Billerica and inc. 1734. It was once the site of a Native American settlement. Primarily residential, the town has light manufacturing, including pharmaceuticals and computer equipment. , Mass. -- 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 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 $166.0 million for the three months ended March 31, 2005 - a 30% increase over the $127.4 million generated in the corresponding quarter in 2004. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter of 2005 was $20.3 million, compared to $14.8 million for the same quarter in 2004. GAAP net income for the quarter was $19.7 million, or $.53 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 GAAP net income of $14.7 million, or $.44 per diluted share, for the corresponding quarter in 2004. Excluding acquisition-related amortization and related tax benefits, acquisition-related stock-based compensation, non-recurring tax benefits, and expenses in the first quarter of 2004 related to the settlement of a lawsuit lawsuit: see procedure; tort. , pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma non-GAAP net income for the first quarter of 2005 was $22.2 million, or $.60 per diluted share, compared to pro forma non-GAAP net income of $15.0 million, or $.45 per diluted share, in the first quarter of 2004. "We've we've Contraction of we have. we've have started 2005 with strong results from both our video and audio businesses," said David Krall People named Krall:
n. A final stage in the production of a film or a television program, occurring after the action has been filmed or videotaped and typically involving editing and the addition of soundtracks. offerings - particularly the Avid DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. (TM) product family, which we recently upgraded to support a wide range of HD formats and resolutions. Our audio revenues were also up significantly, with a 74% increase over the first quarter of 2004 reflecting solid performance from Digidesign Digidesign is an American digital audio technology company. It was founded in 1984 by Peter Gotcher and Evan Brooks. The company began as a project to raise money for the founders' band, selling EPROM chips for drum machines. and from M-Audio M-Audio (formerly Midiman), a business unit of Avid Technology, is a manufacturer of a variety of digital audio workstation interfaces, keyboard MIDI controllers, condenser microphones, and studio monitors, among other products. following its addition to our audio business in the third quarter of 2004. Krall added, "We just returned from the National Association of Broadcasters convention in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , where we had a great week. We made major announcements across our postproduction, broadcast, shared storage, and audio businesses, including the highly anticipated Avid(R) Symphony symphony [Gr.,=sounding together], a sonata for orchestra. The Italian operatic overture, called sinfonia, was standardized by Alessandro Scarlatti at the end of the 17th cent. (TM) Nitris(R) finishing system and the new Avid iNEWS(R) Instinct instinct, term used generally to indicate an innate tendency to action, or pattern of behavior, elicited by specific stimuli and fulfilling vital needs of an organism. (TM) journalist editor, both of which were recognized with awards at the show. All told, Avid won eleven industry awards, making it our most-decorated show in recent years." Use of Non-GAAP Financial Measures The pro forma operating results listed above are "non-GAAP financial measures" under the rules of the Securities and Exchange Commission. We have included this information because we believe it is a meaningful measure of our normalized operating performance and will assist investors in understanding our results of operations on a comparative basis. This pro forma information supplements, and is not intended to represent a measure of performance in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with, disclosures required by generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , or GAAP. We use this information internally to help our management more accurately assess the ongoing nature of our operations and measure our performance on a comparative basis. Conference Call A conference call to discuss Avid's first quarter 2005 financial results and the company's outlook for the balance of 2005 will be held today, April 28, 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 (719) 457-2665 and referencing confirmation code 6477695. The call and subsequent replay will also be available on Avid's Web site. To listen via this alternative, go to the Investors page under the Company menu at www.avid.com for complete details 10-15 minutes prior to the start of the conference call. The above release includes a forward-looking statement 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 1995, about Avid's future performance. There are a number of factors that could cause actual events or results to differ materially from that indicated by such forward-looking statement, such as the competitive market in which Avid operates, market acceptance of Avid's existing and new products, Avid's ability to anticipate customers' needs 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 December: see month. 31, 2004, and other filings with the SEC. In addition, the forward-looking statement contained herein represents Avid's estimate only as of today and should not be relied upon as representing the company's estimate as of any subsequent date. While Avid may elect to update this forward-looking statement at some point in the future, Avid specifically disclaims any obligation to do so, even if the estimate changes. About Avid Technology, Inc. Avid Technology, Inc. is the world leader in digital 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. media creation, management, and distribution solutions, enabling film, video, audio, animation, games, and broadcast professionals to work more efficiently, productively, and creatively. For more information about the company's Oscar(R), Grammy(R), and Emmy(R) award-winning products and services, please visit: www.avid.com. (C) 2005 Avid Technology, Inc. All rights reserved. Avid, Avid DNA, Digidesign, Film Composer, Instinct, M-Audio, Nitris, Pro Tools and Symphony 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. iNEWS is a registered trademark of iNews, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . Avid received an Oscar statuette representing the 1998 Scientific and Technical Award for the concept, design, and engineering of the Avid Film Composer(R) system for motion picture editing. Digidesign, Avid's audio division, received an Oscar statuette representing the 2003 Scientific and Technical Award for the design, development, and implementation of its Pro Tools(R) digital audio workstation A digital audio workstation (DAW) is a system designed to record, edit and play back digital audio. A key feature of DAWs is the ability to freely manipulate recorded sounds, much like a word processor manipulates typed words. . 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 trademark and service mark of the Academy of Motion Picture Arts and Sciences. Emmy is a registered trademark of ATAS/NATAS. Grammy is a trademark of the National Academy of Recording Arts and Sciences The National Academy of Recording Arts & Sciences, Inc. is known variously as The Recording Academy or NARAS. Established in 1957, The Recording Academy is a U.S. , Inc. All other trademarks contained herein are the property of their respective owners.
AVID TECHNOLOGY, INC
Condensed Consolidated Statements of Operations
(unaudited - in thousands, except for per share data)
GAAP NON - GAAP
------------------- -------------------
Three Months Ended Three Months Ended
March 31st, March 31st,
2005 2004 2005 2004
--------- --------- --------- ---------
Revenue
Product $147,378 $113,584 $147,378 $113,584
Service 18,623 13,790 18,623 13,790
--------- --------- --------- ---------
Total Revenue 166,001 127,374 166,001 127,374
--------- --------- --------- ---------
Cost of Revenue
Product 60,897 46,514 60,897 46,514
Service 10,070 7,589 10,070 7,589
Amortization of intangible
assets 281 - - -
--------- --------- --------- ---------
Total Cost of Revenue 71,248 54,103 70,967 54,103
--------- --------- --------- ---------
Gross Profit 94,753 73,271 95,034 73,271
--------- --------- --------- ---------
Operating Expenses
Research and development 24,624 22,292 24,624 22,292
Marketing and selling 39,455 29,854 39,455 29,854
General and administrative 7,973 5,886 7,973 5,886
Stock-based compensation
(Note A) 771 - - -
Amortization of intangible
assets 1,592 439 - -
--------- --------- --------- ---------
Total Operating Expense 74,415 58,471 72,052 58,032
--------- --------- --------- ---------
Operating income 20,338 14,800 22,982 15,239
Interest and other income
(expense), net 837 490 837 490
Legal settlement - (1,050) - -
--------- --------- --------- ---------
Income before income taxes 21,175 14,240 23,819 15,729
Provision for income taxes 1,602 700 1,602 700
Non-recurring and other tax
benefits (173) (1,200) - -
--------- --------- --------- ---------
Net Income $19,746 $14,740 $22,217 $15,029
========= ========= ========= =========
Net income per common share -
basic $0.56 $0.47 $0.64 $0.48
Net income per common share -
diluted $0.53 $0.44 $0.60 $0.45
Weighted average common shares
outstanding - basic 34,987 31,202 34,987 31,202
Weighted average common shares
outstanding - diluted 37,263 33,740 37,263 33,740
Note
----
A. Stock based compensation related to stock options issued as part of
the acquisition of M-Audio, is comprised of $55 of Research and
development expense, $192 of Marketing and selling expense, and
$524 of General and administrative expense, based on the
departmental classification of the option holders.
Reconciliation of Non-GAAP net income to GAAP net income:
Three months ended March 31,
2005 2004
-------------- ------------
Non-GAAP net income $22,217 $15,029
Stock-based compensation (771) -
Amortization of intangible assets (1,873) (439)
Non-recurring tax benefit 1,200
Tax benefit related to amortization 173
Legal settlement - (1,050)
-------------- ------------
GAAP net income $19,746 $14,740
============== ============
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
March 31, December 31,
2005 2004
----------- ------------
ASSETS:
Current assets:
Cash and marketable securities $176,191 $155,419
Accounts receivable, net of allowances
of $8,860 and $9,334 at March 31, 2005
and December 31, 2004, respectively 97,182 97,536
Inventories 55,150 53,946
Prepaid and other current assets 16,439 19,407
----------- ------------
Total current assets 344,962 326,308
Property and equipment, net 29,523 29,092
Goodwill 166,473 165,803
Intangible assets, net 45,010 46,884
Other assets 8,450 8,147
----------- ------------
Total assets $594,418 $576,234
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $25,877 $26,517
Accrued expenses and other current
liabilities 61,572 74,727
Deferred revenue and deposits 55,742 48,680
----------- ------------
Total current liabilities 143,191 149,924
Long term liabilities, less current
portion 1,569 1,689
----------- ------------
Total liabilities 144,760 151,613
----------- ------------
Stockholders' equity:
Common stock 351 348
Additional paid-in capital 552,494 546,849
Accumulated deficit (103,029) (122,775)
Deferred compensation (3,548) (4,392)
Accumulated other comprehensive income 3,390 4,591
----------- ------------
Total stockholders' equity 449,658 424,621
----------- ------------
Total liabilities and stockholders'
equity $594,418 $576,234
=========== ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion