Avid Reports Strong Second Quarter Results.Business Editors/High-Tech Writers 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)--July 17, 2003 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 strong results for the second quarter ended June June: see month. 30, 2003. Revenues for the quarter were $113.3 million versus $106.1 million in the corresponding quarter in 2002. For the six months ended June 30, 2003, revenues were $225.5 million compared to $198.1 million for the first half of 2002. Gross margin for the quarter increased to 55.3% compared to 50.4% in the second quarter of 2002, reflecting the positive impact of a more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product mix as well as currency translation effects. 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 $55.1 million for the second quarter, including costs associated with the company's participation in the National Association of Broadcasters convention in early April. Net income for the second quarter was $7.8 million or $.25 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 $152,000 or $.01 per diluted share for the corresponding quarter in 2002. Net income for the six-month period ended June 30, 2003 was $13.3 million or $.43 per diluted share compared to a net loss of $3.5 million or $.14 per share for the same period in 2002. Avid's cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has increased during the second quarter by $29.0 million, reaching $135.1 million on June 30, 2003. "We are pleased with our results this quarter on several key fronts," said David Krall People named Krall:
"We also began shipping the first of our new 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) solutions during the second quarter: Media Composer(R) Adrenaline adrenaline (ədrĕn`əlĭn, –lēn): see epinephrine. (TM) and NewsCutter(R) Adrenaline FX systems. We shipped over 800 Adrenaline units, delivering unparalleled performance to our customers. "In addition to the success of our new product introductions, our broadcast news business continued to gain momentum in the marketplace. During the quarter, we received orders for 23 more end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. news solutions, bringing our cumulative total to 110 systems sold or installed over the past two and a half years. With each successive quarter, we have been widening our lead as the provider of choice for digital newsroom solutions." Conference Call A conference call to discuss Avid's second quarter 2003 financial results and the company's outlook for the balance of 2003 will be held today, July July: see month. 17 at 5:00 p.m. ET. The call will be open to the public. The conference call can be accessed by dialing (719) 457-2629 and referencing confirmation code 576493. 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. 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 Avid's financial outlook, 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 March 31, 2003 and other filings with the Securities and Exchange Commission. In addition, any forward-looking statements contained herein represent Avid's estimates only as of today and should not be relied upon as representing the company's estimates as of any subsequent date. While Avid may elect to update forward-looking statements at some point in the future, Avid specifically disclaims any obligation to do so, even if the estimates change. 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 news professionals to work more efficiently, productively and creatively. For more information about the company's Oscar(R), Grammy Grammy award for musical achievement. [Am. Cult.: Misc.] See : Music Grammy awarded by the National Academy of Recording Arts and Sciences for the best in the recording field. [Am. Hist.: Misc.] See : Prize (R), and Emmy(R) award-winning products and services, please visit: www.avid.com. (C) 2003 Avid Technology, Inc. All rights reserved. Avid, Adrenaline, Avid DNA, Film Composer, Media Composer and NewsCutter 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 Film Composer(R) system for motion picture editing. 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 Six Months Ended
June 30, June 30,
2003 2002 2003 2002
(unaudited) (unaudited)(unaudited)(unaudited)
Net revenues $113,317 $106,094 $225,494 $198,103
Cost of revenues 50,608 52,591 102,835 100,306
Gross profit 62,709 53,503 122,659 97,797
Operating expenses:
Research and
development 21,428 20,411 43,127 40,229
Marketing and selling 27,748 26,775 53,012 49,741
General and
administrative 5,617 5,018 10,962 9,531
Restructuring and
other costs, net - (327) 1,783 (327)
Amortization of
acquisition-related
intangible assets 341 257 634 603
Total operating
expenses 55,134 52,134 109,518 99,777
Operating income (loss) 7,575 1,369 13,141 (1,980)
Interest and other income
(expense), net 507 (717) 738 (452)
Income (loss) before
income taxes 8,082 652 13,879 (2,432)
Provision for income
taxes 300 500 600 1,100
Net income (loss) $7,782 $152 $13,279 ($3,532)
Net income (loss) per
common share - basic $0.27 $0.01 $0.47 ($0.14)
Net income (loss) per
common share - diluted $0.25 $0.01 $0.43 ($0.14)
Weighted average common
shares outstanding - basic 28,494 26,161 28,052 26,095
Weighted average common
shares outstanding
- diluted 31,673 26,511 30,904 26,095
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2003 2002
(unaudited)
ASSETS:
Current assets:
Cash and marketable securities $135,066 $89,034
Accounts receivable, net of allowances
of $9,913 and $10,614 at June 30, 2003
and December 31, 2002, respectively 66,963 65,942
Inventories 36,247 38,047
Prepaid and other current assets 13,507 11,919
Total current assets 251,783 204,942
Property and equipment, net 23,180 25,731
Acquisition-related intangible assets 2,545 2,600
Other assets 2,786 2,530
Total assets $280,294 $235,803
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $17,434 $24,297
Accrued expenses and other current liabilities 52,733 51,032
Deferred revenue 43,685 35,483
Total current liabilities 113,852 110,812
Long term liabilities, less current portion 924 1,427
Total stockholders' equity 165,518 123,564
Total liabilities and stockholders' equity $280,294 $235,803
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