Avid Technology Reports First Quarter Results; Company Returns to Profitability Excluding Acquisition-Related Charges.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)--April 26, 2000 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 announced financial results for the quarter ended March 31, 2000. In a separate announcement, the Company said that David Krall People named Krall:
First quarter 2000 revenues were $108.7 million compared to $111.3 million in the first quarter 1999. For the first quarter 2000, the Company recorded a net loss of $19.5 million, or $0.81 per share, which includes 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. . Excluding the acquisition-related amortization, the Company recorded tax-effected income of $336,000, or $0.01 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 with tax-effected income of $2.7 million, or $0.10 per diluted share, a year earlier. Mr. Krall commented, "First quarter 2000 revenue reflected the seasonal softness we expected in anticipation of the National Association of Broadcasters trade show in April. Media Composer(R) and SOFTIMAGE(R)|DS system revenues were essentially flat while 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. (TM) system revenues improved from fourth quarter 1999 levels. Upgrade revenue from these products declined following strong upgrade sales at the time new versions of these products were introduced in the fourth quarter of 1999. Avid's Digidesign(R) audio division had a record quarter. Pro Tools(R) version 5.0 software is continuing its success in the high-end audio High-end audio is a term used to describe equipment that is purported by the manufacturers to be the best, regardless of the price. Definition of 'high-end' High-end audio post-production market, and the Digi 001(TM) product is being very well received for home studio recording." Mr. Krall continued, "The broad range of new products and workgroup solutions that Avid introduced at NAB earlier this month, targeted at both our core markets and the emerging internet market for streaming media See streaming audio, streaming video and digital media hub. , demonstrates the strength of our company's technical expertise and underlying potential. As promised, we introduced the eagerly anticipated Avid ePublisher, the industry's first complete streaming media publishing tool for Web-enabled video production at NAB. Avid ePublisher, with its breakthrough Link & Sync(TM) feature, will allow new media creators, rather than programmers This is a list of programmers notable for their contributions to software, either as original author or architect, or for later additions. See also: Game programmer, List of computer scientists , to create Web content that combines both video and information into a single interactive experience. Avid has also announced a partnership, licensing and distribution agreement with Terran Interactive, a subsidiary of Media 100, Inc., and will bundle Terran's Media Cleaner EZ media encoding See encode. product, Media Cleaner pro, into upcoming releases of the Symphony, Media Composer, Avid Xpress(R), Avid Xpress DV Avid Xpress DV is a popular non-linear video editing application available to professionals on Microsoft Windows and Apple Macintosh computers. See also
adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. initial customer response." "At NAB, Avid also introduced new releases of the Media Composer system, the worldwide standard for editing, with feature parity parity or space parity, in physics, quantity that refers to the relationship between an object or process and the image that it can produce in a mirror. between the Macintosh and Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. platforms; and the Symphony system, the most efficient finishing and 24p universal mastering solution for editorial productions. Both releases are planned for shipment in the third quarter of 2000. Symphony version 3 will incorporate Ultimatte Corporation's real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. keying technology, which features the award-winning blue and green screen compositing capabilities which have earned Ultimatte the top spot in the linear finishing world. Additional features will also include real-time secondary color secondary color n. A color produced by mixing two primary colors in equal proportions. See Table at color. secondary color A color produced by mixing two additive primary colors in equal proportions. correction and motion tracking and image stabilization Image stabilization (IS) is a family of techniques to increase the stability of an image. It is used in image-stabilized binoculars, photography, videography, and astronomical telescopes. . Media Composer version 10.0 will deliver streaming video capabilities so that users can re-purpose video assets for the web." "Also at NAB," Krall added, "The Softimage division announced the much-anticipated release of SOFTIMAGE|XSI XSI - X/Open System Interface (TM), the company's next-generation 3-D animation solution, as well as SOFTIMAGE|DS HD, a high-definition version of our high-end editing system. We also introduced enhanced versions of our Avid Unity(TM) MediaNet system, the revolutionary media network for professional media production and distribution. With this release, the power and scope of MediaNet is expanded to include larger workgroups or several smaller workgroups that can work concurrently with access to as much as 650 hours of broadcast-quality video. Avid Unity MediaNet version 1.2 is scheduled to ship late in the second quarter of this year." "Avid's presence in Broadcast was very strong at NAB," Krall continued. "NewsCutter XP, a new low cost DV model of NewsCutter, was introduced along with MPEG (Moving Pictures Experts Group) An ISO/ITU standard for compressing digital video. Pronounced "em-peg," it is the universal standard for digital terrestrial, cable and satellite TV, DVDs and digital video recorders (DVRs). and DV50 versions of the NewsCutter system. We also demonstrated NewsCutter systems connected to Avid Unity MediaNet, which allows broadcasters to capture, edit and broadcast material in a shared workgroup environment." "AvidProNet.com(TM), a site we created to facilitate the creation of an online community of media professionals and to serve as a source of information and services, has enrolled some 2000 professionals since its inception in January and has established relationships with leading stock footage and sound libraries - including Getty Images, The Image Bank, Energy Films, Sound Dogs, Beatnik and m2 - to provide content over the Web. Digidesign will be developing a full-featured audio component of AvidProNet.com that will feature networked products and services for audio creation and production." The company also augmented its customer service initiatives. The Avid FlexSupport program will provide all Avid customers with a choice of technical support options, including Avid CallPaks, which offer a pre-defined number of service calls, and Avid On-Call on-call Hospital practice adjective Referring to a status in which a physician can be reached and arrive at the hospital within 30 mins of being paged , for flat-fee 24/7 telephone support. "We are enthusiastic about the prospects for Avid solutions in both our core and Internet infrastructure markets. We believe the new products and workgroup solutions we introduced at NAB are the most exciting in Avid's history, and we will continue to focus on providing solutions to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the explosive demand for multimedia Web-based content." The above 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. , including statements about the anticipated results of operations during the year 2000. There are a number of factors that could cause actual events or results of operations to differ materially from those indicated by such forwarding-looking statements, such as market acceptance of the Company's products and the other factors set forth under the caption "Certain Factors That May Affect Future Results" in the Company's Annual Report on Form 10-K Form 10-K A 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 1999. Avid Technology, Inc. is an international, industry-leading provider of digital audio and video solutions for information and entertainment applications. The company's products are used by a variety of customers worldwide including film, television and interactive content producers, TV news broadcasters, corporate communicators, and consumers. For more information, visit Avid's website at www.avid.com. (c) 2000 Avid Technology, Inc. All rights reserved. Product specifications are subject to change without notice. Avid, Avid Xpress, Digidesign, Media Composer, NewsCutter, Pro Tools and Softimage are registered trademarks and Avid Unity, AvidProNet.com, Digi 001, Link & Sync, Symphony and XSI are trademarks of Avid Technology, 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
March 31
2000 1999
(unaudited) (unaudited)
Net revenues $ 108,696 $ 111,283
Cost of revenues 53,258 44,420
Gross profit 55,438 66,863
Operating expenses:
Research and development 19,445 24,248
Marketing and selling 28,539 32,563
General and administrative 6,912 6,741
Amortization of acquisition-related
intangible assets 19,800 20,511
Total operating expenses 74,696 84,063
Operating loss (19,258) (17,200)
Interest and other income, net 1,044 600
Loss before income taxes (18,214) (16,600)
Provision for (benefit from) income taxes 1,250 (5,146)
Net loss ($ 19,464) ($ 11,454)
Net loss per common share
- basic and diluted ($ 0.81) ($ 0.47)
Weighted average common shares outstanding
- basic and diluted 24,065 24,391
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
March 31 December 31
2000 1999
ASSETS: (unaudited)
Current assets:
Cash and marketable securities $ 62,094 $ 72,805
Accounts receivable, net of
allowances of $9,268 and
$8,954 in March 31, 2000 and
December 1999, respectively 80,244 76,172
Inventories 14,258 14,969
Prepaid and other current assets 19,287 12,493
Total current assets 175,883 176,439
Property and equipment, net 32,968 32,748
Acquisition-related
intangible assets 75,260 95,073
Other assets 5,940 7,764
Total assets $290,051 $312,024
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 20,231 $ 23,998
Accrued expenses 50,233 58,050
Deferred revenue and other
current liabilities 28,719 24,047
Total current liabilities 99,183 106,095
Long term liabilities,
less current portion 15,142 14,220
Purchase consideration 13,458 23,786
Total stockholders' equity 162,268 167,923
Total liabilities and
stockholders' equity $290,051 $312,024
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