Avid Reports Record Second 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 record second quarter revenues and net income. Revenues for the three months ended June June: see month. 30, 2004 were $139.9 million, a 23% increase over the $113.3 million in the corresponding quarter in 2003. Net income for the quarter nearly doubled from a year ago and was $15.5 million, or $0.45 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 $7.8 million, or $0.25 per diluted share, for the corresponding quarter in 2003. Net income for the six months ended June 30, 2004 was $30.2 million, or $0.89 per diluted share, on revenues of $267.3 million. This compares to net income of $13.3 million, or $0.43 per diluted share, on revenues of $225.5 million for the first half of 2003. Gross margin for the second quarter was 56.4%, up 1.1 percentage points from the same quarter last year. As expected, 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. rose sequentially to $63.3 million including costs associated with the company's participation in the National Association of Broadcasters trade show in April. "We continue to achieve strong results from each of our segments," 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. and broadcast businesses. Our audio segment revenues increased 21% year-over-year, boosted by the initial shipments of the D-Control(TM) tactile tactile /tac·tile/ (tak´til) pertaining to touch. tac·tile adj. 1. Perceptible to the sense of touch; tangible. 2. Used for feeling. 3. work surface that is part of the 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. (R) ICON integrated audio production environment. "Avid's strategic plan in digital content creation The development of newsworthy, educational and entertainment material for distribution over the Internet or other electronic media. See DAMS. , management and distribution is right on track," continued Krall. "We've we've Contraction of we have. we've have posted double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. , year-over-year revenue growth for the last four quarters, and record revenues for the past two quarters, and we're we're Contraction of we are. we're we are looking forward to growing Avid's business in our core markets and the new areas that we've targeted for expansion." Conference Call A conference call to discuss Avid's second quarter 2004 financial results and the company's outlook for the balance of 2004 will be held today, July 22 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) 457-2637 and referencing confirmation code 576792. 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-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2004, and other filings with the Securities and Exchange Commission. 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) 2004 Avid Technology, Inc. All rights reserved. Avid, D-Control, Digidesign, Film Composer, 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. Avid received an Oscar statuette representing the 1998 Scientific and Technical Award for the concept, design, and engineering of the Avid(R) 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 per share data)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2004 2003 2004 2003
----------- ---------- ---------- -----------
Net revenues $139,886 $113,317 $267,260 $225,494
Cost of revenues 60,995 50,608 115,098 102,835
----------- ---------- ---------- -----------
Gross profit 78,891 62,709 152,162 122,659
----------- ---------- ---------- -----------
Operating expenses:
Research and
development 22,924 21,428 45,216 43,127
Marketing and selling 33,656 27,748 63,510 53,012
General and
administrative 6,184 5,617 12,070 10,962
Restructuring and
other costs, net -- -- -- 1,783
Amortization of
intangible assets 549 341 988 634
----------- ---------- ---------- -----------
Total operating
expenses 63,313 55,134 121,784 109,518
Operating income 15,578 7,575 30,378 13,141
Interest and other
income, net 595 507 35 738
----------- ---------- ---------- -----------
Income before income
taxes 16,173 8,082 30,413 13,879
Provision for income
taxes 700 300 200 600
----------- ---------- ---------- -----------
Net income $15,473 $7,782 $30,213 $13,279
=========== ========== ========== ===========
Net income per common
share - basic $0.49 $0.27 $0.96 $0.47
=========== ========== ========== ===========
Net income per common
share - diluted $0.45 $0.25 $0.89 $0.43
=========== ========== ========== ===========
Weighted average common
shares outstanding -
basic 31,623 28,494 31,413 28,052
=========== ========== ========== ===========
Weighted average common
shares outstanding -
diluted 34,134 31,673 33,912 30,904
=========== ========== ========== ===========
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(unaudited - in thousands)
June 30, Dec. 31,
2004 2003
----------- ---------
ASSETS:
Current assets:
Cash and marketable securities $190,697 $196,309
Accounts receivable, net of allowances of
$8,816 and $9,161 at June 30, 2004
and December 31, 2003,
respectively 78,702 69,230
Inventories 34,475 38,292
Prepaid and other current assets 13,922 13,181
----------- ---------
Total current assets 317,796 317,012
Property and equipment, net 24,441 23,223
Acquisition-related intangible assets 49,719 5,150
Other assets 5,887 2,734
----------- ---------
Total assets $397,843 $348,119
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $19,953 $15,755
Accrued expenses and other current
liabilities 55,497 59,709
Deferred revenue and deposits 54,546 44,943
----------- ---------
Total current liabilities 129,996 120,407
Long term liabilities, less current portion 351 607
Total stockholders' equity 267,496 227,105
----------- ---------
Total liabilities and stockholders'
equity $397,843 $348,119
=========== =========
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