Avid Technology reports record 1994 results; revenues up 80 percent to $204 million.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)--Feb. 1, 1995--Avid Technology 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) Wednesday Wednesday: see week. reported record revenues and earnings for its fiscal year and fourth quarter ended Dec. 31, 1994. Revenues for the year climbed 80% to $203.7 million, compared to $112.9 million in 1993. Net income rose to $13 million or $1.10 per share in 1994 from $3.7 million or 38 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in 1993. (The 1993 results included the net effect of a $2.8 million write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. associated with an acquisition). In the fourth quarter revenues rose 87% from the fourth quarter of 1993 to $67 million. Net income increased to $4.8 million or 40 cents per share for the fourth quarter of 1994 as compared to $3.1 million or 27 cents per share in the corresponding 1993 period. "The fourth quarter provided a strong finish to the year," commented Curt Rawley, Avid's president and chief executive officer. "All of our business groups contributed to the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. performance, including our Media Suite Pro product and our audio product family, which had their best revenue quarter ever." Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Basson, Avid's vice president of worldwide field operations, stated: "All regions of the world enjoyed healthy sales during the final quarter of 1994. We continued to see growth in our North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. dealer and distributor sales. In fact, the new indirect sales channel in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. accounted for 29 percent of total North American revenues, up from 21 percent in the third quarter." "The gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. in the fourth quarter was at 51.6% of the revenues, the highest level of the year," said Jonathan Cook Jonathan Cook (born in 1965 in Buckinghamshire, England) is a British freelance journalist based in Nazareth, Israel, who has published in The Guardian, The Observer, ZNet, Electronic Intifada, CounterPunch , Avid's chief financial officer. "However, 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. , as a percentage of revenues, increased to 42.2% in the fourth quarter, as compared to 41.1% in the third quarter of 1994, due to higher R&D expenses. R&D expenses, as a percentage of revenues, rose to 12.5% from 10.8% in the third quarter and 10.1% in the fourth quarter of 1993. We expect R&D expenses to remain at this higher level for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future." Rawley commented, "The revenue performance we experienced in the fourth quarter enabled us to increase spending on new research, development and engineering projects. We continue to invest in engineering management and hardware development, in the development of software products for platforms in addition to the Macintosh and in new markets such as broadcast news and in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. corporate video production." "We believe that 1994 was a year of important achievement and we look forward to 1995," Rawley concluded. "Already, we have consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. the merger with Digidesign, strengthening our position in both the core digital audio technologies and audio markets. "We are currently installing the first of several disk-based newsroom systems, which have been ordered during the last six months. We also have started shipping the 5.2 software release for the Media Composer family of systems, which offers users higher levels of image resolution and more sophisticated effects. "Nevertheless, we realize that 1995 and the years ahead will present even greater challenges for the company and Avid's success will continue to attract competition. Additionally, we must continue to manage the day-to-day operations of a global company, which has grown from revenues of $1 million to more than $200 million in just five years. Despite these challenges, we believe Avid is poised to seize seize v. To exhibit symptoms of seizure activity, usually with convulsions. the opportunities the future will offer." 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., headquartered in Tewksbury, is an international developer and supplier of comprehensive solutions for capturing, creating, editing and distributing digital media. Ranked No. 9 by Fortune magazine and No. 5 by Inc. magazine on their lists of America's 100 fastest-growing companies for 1994, Avid is a pioneering developer of 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. film, video and audio editing Audio editing is the process of taking recorded sound and changing it directly on the recording medium (analog) or in RAM (digital). Audio editing was a new technology that developed in the middle part of the 20th century with the advent of magnetic tape recording. software and hardware and networking technologies for applications ranging from desktop video and post production to broadcast news. Avid's products are sold through direct sales offices and a network of distributors and resellers around the world. -0-
Avid Technology Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Dec. 31, Year Ended Dec. 31,
1994 1993 1994 1993
(unaudited)
Net revenues $66,990 $35,776 $203,668 $112,850 Cost of revenues 32,405 17,174 99,874 54,094 Gross profit 34,585 18,602 103,794 58,756 Operating expenses: Research and development 8,385 3,616 23,699 13,243 Marketing and selling 16,573 9,517 53,369 32,970 General and administrative 3,309 2,283 9,981 5,770 Purchase of incomplete technology 3,750 Total operating expenses 28,267 15,416 87,049 55,733 Operating income 6,318 3,186 16,745 3,023 Interest income, net 223 561 990 1,543 Income before income taxes 6,541 3,747 17,735 4,566 Income taxes 1,730 686 4,764 850 Net income $4,811 $3,061 $12,971 $3,716 Net income per common share 40 cents 27 cents $1.10 38 cents Weighted average common shares outstanding 12,137 11,432 11,844 9,778
Avid Technology Inc.
Condensed Consolidated Balance Sheets
(in thousands)
December 31,
1994 1993
______________
Assets:
Current assets:
Cash and cash equivalents $11,848 $11,237
Marketable securities 16,437 27,696
Accounts receivable, net of allowance
for doubtful accounts of $2,454 and $931
in 1994 and 1993, respectively 51,210 26,333
Inventories 29,225 18,267
Other current assets 12,802 7,512
Total current assets 121,522 91,045
Other assets 1,864
Property and equipment, net 25,260 14,316
Total assets $148,646 $105,361
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable $15,134 $4,307
Current portion of notes payable 1,787 1,090
Accrued expenses 16,064 10,610
Deferred revenue 15,501 7,332
Total current liabilities 48,486 23,339
Notes payable 2,369 545
Stockholders' equity:
Common stock 107 103
Additional paid-in capital 85,767 82,756
Retained earnings (accumulated deficit) 12,579 (392)
Cumulative translation adjustment (578) (990)
Net unrealized losses on debt securities (84)
Total stockholders' equity 97,791 81,477
Total liabilities and stockholders'
equity (deficit) $148,646 $105,361
-0- Note to Editors: Avid and Media Composer are registered trademarks and Media Suite is a trademark of Avid Technology Inc. All other trademarks contained herein are the property of their respective owners. CONTACT: Avid Technology Inc., Tewksbury Scott Higgins Scott Higgins (born June 9, 1976 in Cairns, Queensland, Australia) is an Australian football (soccer) player who plays as a goalkeeper. His career has seen has seen him play in three different continents, first in his native Australia and then on to Europe and the Middle , 508/640-3563 Julie O'Brien, 508/640-3071 |
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