Avid Reports Fourth Quarter Profit of $.05 per Share.Business/Technology 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)--Jan. 31, 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 fourth quarter and year ended December December: see month. 31, 2001. Net income for the quarter was $1.3 million or $.05 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 on total revenues of $104.8 million. This compares to a net loss of $7.6 million or $.30 per share on revenues of $126.1 million in the fourth quarter of 2000. 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 fourth quarter of 2001 was $302,000 compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $6.9 million in the same period last year. Including acquisition-related amortization, 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 loss for the year ended December 31, 2001 was $38.1 million or $1.49 per share compared to a net loss of $56.3 million or $2.28 per share in 2000. For the year ended December 31, 2001, revenues were $434.6 million compared to revenues of $476.1 million in 2000. "We are pleased to announce a profitable fourth quarter," said David Krall, Avid's president and chief executive officer. "Despite the worldwide economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. , demand for our products remains strong, and our ongoing commitment to improve our cost structure has proved effective. We expect that this fiscal discipline will serve us well in 2002 and beyond." Major Avid releases during the year included Avid(R)|DS HD 5.0, a high-definition finishing system that allows Avid to tap into the strengthening demand for high definition products; SOFTIMAGE(R)| XSI XSI - X/Open System Interface (TM) 2.0, the latest version of Avid's flagship 3D and animation software; Avid Unity(TM) LANshare, an Ethernet-based networking solution for improving connectivity within small- and mid-sized production facilities; and Avid Xpress(R) DV 2.0, a low-cost, portable, software-only editing tool that continues to attract new users to the Avid family. "Looking forward, we are excited about the products we will deliver during 2002. The first of these is the recently announced Digidesign(R) audio workstation - Pro Tools(R)|HD, which began shipping this month," Krall said. "This next-generation audio production platform offers a significant advancement in performance and audio fidelity, along with a convenient upgrade path for our existing customers." Conference Call A conference call to discuss Avid's fourth quarter 2001 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 800-474-8920 and referencing confirmation code 529587. 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. 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), Grammy(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 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:
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-Q Form 10-QSee 10-Q. for the quarter ended September 30, 2001 and other filings with the Securities and Exchange Commission. (c) 2002 Avid Technology, Inc. All rights reserved. Avid, Avid Xpress, Digidesign, Pro Tools and Softimage are registered trademarks and Avid Unity, Make, Manage and Move Media, and XSI are trademarks of Avid Technology, Inc. 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. Grammy is a trademark of The National Academy of Recording Arts & Sciences, Inc. 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,
2001 2000 2001 2000
(unaudited) (unaudited)
Net revenues $104,789 $126,144 $434,638 $476,090
Cost of revenues 53,099 62,929 213,572 234,424
Gross profit 51,690 63,215 221,066 241,666
Operating expenses:
Research and development 21,355 21,740 86,140 82,900
Marketing and selling 24,173 29,560 113,053 119,469
General and
administrative 5,613 6,421 23,313 27,504
Restructuring and
other costs, net (281) -- 8,268 --
Amortization of
acquisition-related
intangible assets 528 12,418 31,168 66,872
Total operating
expenses 51,388 70,139 261,942 296,745
Operating income (loss) 302 (6,924) (40,876) (55,079)
Interest and other
income, net 1,533 604 5,529 3,730
Income (loss) before
income taxes 1,835 (6,320) (35,347) (51,349)
Provision for income taxes 500 1,250 2,800 5,000
Net income (loss) $1,335 ($7,570) ($38,147) ($56,349)
Net income (loss)
per share - basic $0.05 ($0.30) ($1.49) ($2.28)
Net income (loss)
per share - diluted $0.05 ($0.30) ($1.49) ($2.28)
Weighted average shares
outstanding - basic 25,895 25,018 25,609 24,683
Weighted average shares
outstanding - diluted 26,451 25,018 25,609 24,683
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2001 2000
ASSETS:
Current assets:
Cash and marketable securities $72,961 $83,206
Accounts receivable, net of allowances of
$11,497 and $11,384 at December 31, 2001
and 2000, respectively 78,010 90,047
Inventories 21,690 21,102
Prepaid expenses and other current assets 10,857 11,750
Total current assets 183,518 206,105
Property and equipment, net 27,164 26,136
Acquisition-related intangible assets, net 3,462 30,316
Other assets 1,662 3,925
Total assets $215,806 $266,482
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 19,076 $ 28,775
Accrued expenses 49,598 55,962
Deferred revenue and other current
liabilities 29,354 24,783
Total current liabilities 98,028 109,520
Long-term liabilities, less current portion 13,020 13,449
Purchase consideration -- 5,663
Total stockholders' equity 104,758 137,850
Total liabilities and
stockholders' equity $215,806 $266,482
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