Avid Reports Second Quarter Results.Business/Technology Editors TEWKSBURY, Mass.--(BUSINESS WIRE)--July 19, 2001 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 second quarter ended June 30, 2001. Revenues for the quarter were $109.4 million. Net loss for the quarter was $14.8 million or $.58 per share including amortization of acquisition-related intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , 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. Excluding acquisition-related amortization, restructuring and other costs, net, Avid would have reported a net loss of $1.8 million or $.07 per share for the second quarter of 2001. For the six months ended June 30, 2001, revenues were $227.6 million. Net loss for the six-month period was $25.3 million or $1.00 per share including amortization of acquisition-related amortization, restructuring and other costs, net. Excluding amortization of acquisition-related intangible assets, restructuring and other costs, net, Avid would have reported net income of $509,000 or $.02 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 for the first half of 2001. "Avid has not been immune to the effects of 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. ," said David Krall, Avid's president and chief executive officer. "Specifically, we experienced year-over-year declines in our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. video business and worldwide audio business. On the other hand, we achieved growth in other geographies and business segments. Revenues from our video business in both the Americas and Asia increased on sales of our core products. Demand for our high-definition (HD) finishing systems was also particularly strong. "We continue to believe that the next advancement in digital content creation The development of newsworthy, educational and entertainment material for distribution over the Internet or other electronic media. See DAMS. will be from stand-alone products to integrated solutions. We see immense value in connecting groups of creative professionals together in a way that empowers local and global collaboration - and streamlines the content creation, management, and distribution process. The progress we are making today, while not reflected in our short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. results, continues to strengthen the breadth and depth of the integrated solutions Avid is bringing to the market." Krall concluded, "Looking forward, we intend to carefully manage our expenses as we continue investing in those areas which are critical to our future, so that Avid is well-positioned when the economy recovers." Conference Call A conference call to discuss Avid's second quarter 2001 financial results will be held today 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 888-857-6932 and referencing confirmation code 664448. The call and subsequent replay will also be available 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. 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 the results of operations during the second quarter of 2001. 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 March 31, 2001 and other filings with the Securities and Exchange Commission. (c) 2001 Avid Technology, Inc. All rights reserved. Avid is a registered trademark and Make, Manage and Move Media is a trademark 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)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Net revenues $ 109,434 $ 119,959 $ 227,567 $ 228,655
Cost of revenues 53,516 57,934 110,029 111,192
Gross profit 55,918 62,025 117,538 117,463
Operating expenses:
Research and
development 21,882 20,825 45,155 40,270
Marketing and selling 31,520 31,382 61,266 59,921
General and
administrative 5,432 8,101 12,399 15,013
Restructuring and
other costs, net (118) -- 246 --
Amortization of
acquisition-related
intangible assets 13,132 19,792 25,552 39,592
Total operating
expenses 71,848 80,100 144,618 154,796
Operating loss (15,930) (18,075) (27,080) (37,333)
Interest and other
income, net 1,895 1,233 3,391 2,277
Loss before
income taxes (14,035) (16,842) (23,689) (35,056)
Provision for
income taxes 800 1,250 1,600 2,500
Net loss ($ 14,835) ($ 18,092) ($ 25,289) ($ 37,556)
Net loss per
common share
- basic and diluted ($ 0.58) ($ 0.74) ($ 1.00) ($ 1.54)
Weighted average
common shares
outstanding -
basic and diluted 25,440 24,578 25,395 24,322
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2001 2000
(unaudited)
ASSETS:
Current assets:
Cash and marketable securities $ 66,176 $ 83,206
Accounts receivable,
net of allowances of $12,503 and
$11,384 at June 30, 2001 and
December 31, 2000, respectively 83,707 90,047
Inventories 26,580 21,102
Prepaid and
other current assets 13,133 11,750
Total current assets 189,596 206,105
Property and equipment, net 25,513 26,136
Acquisition-related
intangible assets 9,083 30,316
Other assets 1,794 3,925
Total assets $225,986 $266,482
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 20,110 $ 28,775
Accrued expenses 46,242 55,962
Deferred revenue and
other current liabilities 29,604 24,783
Total current liabilities 95,956 109,520
Long-term liabilities,
less current portion 13,594 13,449
Purchase consideration 2,365 5,663
Total stockholders' equity 114,071 137,850
Total liabilities and
stockholders' equity $225,986 $266,482
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