Avid Reports First Quarter Results.Business Editors 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.--(BUSINESS WIRE)--April 18, 2002 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 first quarter ended March 31, 2002. Revenues for the quarter were $92.0 million versus $118.1 million in the corresponding quarter in 2001. Net loss for the quarter was $3.7 million or $.14 per share compared to a net loss of $10.5 million or $.41 per share in the first quarter of 2001. The company ended the quarter with $53.5 million in cash after prepaying a $13.0 million note, leaving the company with no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . "We had expected better results from this quarter," said David Krall, Avid's president and chief executive officer, "especially from the postproduction post·pro·duc·tion 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. side of our business. Customers for our core video products continue to feel the effects of the weak advertising market and are taking a very conservative approach to their purchasing. In response, we have reduced our budgeted operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , but remain committed to our product development roadmap for the year. We continue to see substantial opportunities in our core markets, and want to ensure that Avid can take maximum advantage of our market position when the economy recovers. We are already seeing positive market response to the introduction of our new Pro Tools(R)|HD family of audio products, which started shipping early in the first quarter." Avid also introduced a broad array of new products and major enhancements for its video business at 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. this month: - To serve the increasing demand for interactive content, the newest releases of the Symphony(TM), Media Composer(R), Film Composer(R) and Avid Xpress(R) products offer more than 100 new enhancements including our award-winning MetaSync(TM) technology which allows customers to incorporate interactive TV, subtitling, and many other revenue-generating offerings directly into their editing workflow. - To serve the growing market for HD finishing, Avid(R)|DS HD version six fully integrates the industry's most powerful HD finishing system into the rest of the Avid family through the inclusion of a new Media Composer-like interface and better media interchange with Media Composer systems. - For the broadcast market, Avid announced a low-cost nonlinear news production system. This system complements Avid's higher-end offering, which customers have already made the best-selling end-to-end digital newsroom solution on the market. - The Avid Unity(TM) MediaNet family, which is already the industry standard in shared storage, has been expanded to include a lower-cost shared storage solution, enabling Avid to deliver cost-effective nonlinear workflow advantages to facilities of any size. Conference Call A conference call to discuss Avid's first quarter 2002 financial results 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 913-981-5591 and referencing confirmation code 551535. 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 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-K Form 10-KA 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, 2001 and other filings with the Securities and Exchange Commission. In addition, any forward-looking statements contained herein represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation to do so, even if our 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 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) 2002 Avid Technology, Inc. All rights reserved. Avid, Avid Unity, Avid Xpress, Make, Manage and Move Media, Media Composer, 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. , Film Composer, MetaSync and Pro Tools 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
March 31,
2002 2001
(unaudited) (unaudited)
Net revenues $ 92,009 $ 118,133
Cost of revenues 47,715 56,513
Gross profit 44,294 61,620
Operating expenses:
Research and development 19,818 23,273
Marketing and selling 22,966 29,746
General and administrative 4,513 6,967
Restructuring and other costs, net -- 364
Amortization of acquisition-related
intangible assets 346 12,420
Total operating expenses 47,643 72,770
Operating loss (3,349) (11,150)
Interest and other income, net 265 1,496
Loss before income taxes (3,084) (9,654)
Provision for income taxes 600 800
Net loss ($3,684) ($10,454)
Net loss per common share
- basic and diluted ($0.14) ($0.41)
Weighted average common shares
outstanding - basic and diluted 26,029 25,348
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2002 2001
(unaudited)
ASSETS:
Current assets:
Cash and marketable securities $ 53,535 $ 72,961
Accounts receivable, net of allowances
of $10,603 and $11,497 at March 31, 2002
and December 31, 2001, respectively 77,863 78,010
Inventories 24,968 21,690
Prepaid and other current assets 11,591 10,857
Total current assets 167,957 183,518
Property and equipment, net 25,877 27,164
Acquisition-related intangible assets 3,113 3,462
Other assets 1,504 1,662
Total assets $198,451 $215,806
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 20,242 $ 19,076
Accrued expenses 41,186 49,598
Deferred revenue and other
current liabilities 34,406 29,354
Total current liabilities 95,834 98,028
Long-term liabilities -- 13,020
Total stockholders' equity 102,617 104,758
Total liabilities and
stockholders' equity $198,451 $215,806
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