Avid Technology reports results for first quarter 1996.

TEWKSBURY, Mass.--(BUSINESS WIRE)--April 30, 1996--Avid Technology, Inc. (NASDAQ: AVID) today reported revenues of $92.0 million for the quarter ended March 31, 1996, an increase of 10 percent over first quarter 1995 revenues of $83.9 million.

Avid reported a net loss for the quarter of $22.8 million, or a loss of $1.08 per share. The loss reflects one-time, pretax charges of $20.1 million for restructuring costs and for product transition costs associated with the move from NuBus to PCI bus technology in some of its product lines. In the first quarter of 1995, Avid reported a loss of $1.0 million or a loss of $0.05 per share. The loss in the first quarter of 1995 reflected a $5.5 million one-time, pretax charge for transaction and restructuring costs incurred in connection with Avid's mergers with Digidesign, Inc., Elastic Reality, Inc. and Parallax Software, all of which were completed during the first quarter of 1995.

Daniel A. Keshian, Avid's president, commented, "This year's first quarter results were disappointing. Seasonally, the first quarter is always our toughest revenue quarter because customers tend to delay purchase decisions until the National Association of Broadcasters (NAB) show, typically held in April. This year revenue levels were further affected by deferral of purchases of certain post-production and audio products by customers because of expectations of Avid's imminent release of PCI bus-based products. Late in March, the Company successfully commenced shipment of Media Composer systems based on the PCI bus architecture."

Jonathan Cook, chief financial officer of Avid, said, "We implemented a number of changes during the quarter, streamlining our organizational structure and narrowing our product and market focus. We incurred a $7 million one-time charge associated with a reduction in headcount and the cancellation of certain products and projects. In addition, we also took a $13.2 million one-time charge for product transition costs in connection with the move to PCI bus technology from NuBus in some of our product lines."

Keshian concluded, "Having undertaken the restucturing efforts in the first quarter, we look forward to the remainder of the year with renewed optimism. Our engineering organization continues to develop an attractive array of products. We believe the favorable reception that our products received at the recent NAB show bodes well for our business prospects. Furthermore, we believe that Avid is well-positioned to take advantage of its market opportunities and to improve profitability and return on assets in the periods ahead."

The above may include forward-looking statements. Actual results may differ materially from those described therein, depending on such factors as are described under "Certain Factors That May Affect Future Results" in the Company's Annual Report on Form 10-K for 1995, filed with the SEC.

Avid Technology, Inc., headquartered in Tewksbury, Mass., is an international developer and supplier of all-digital solutions for capturing, creating, editing and distributing digital media on multiple platforms. Joined through mergers with Digidesign, Elastic Reality and Parallax Software, Avid's product line encompasses industry-leading nonlinear film, video and audio editing, special effects and image processing software, as well as networking, server and storage technologies for applications such as television and film post production, broadcast news, desktop video, multimedia and music production.

Avid, Digidesign and Media Composer are registered trademarks of Avid Technology, Inc. -0-

                           AVID TECHNOLOGY, INC.
              Condensed Consolidated Statements of Operations
                   (in thousands, except per share data)

                                        Three Months Ended
                                            March 31,
                                       1996           1995
                                    (unaudited)    (unaudited)

Net revenues                         $92,039        $83,895
Cost of revenues                      52,456         40,568
   Gross profit                       39,583         43,327

Operating expenses:
   Research and development           17,616         12,209
   Marketing and selling              30,433         21,658
   General and administrative          5,498          4,234
   Nonrecurring costs                 20,150          5,456
       Total operating expenses       73,697         43,557

Operating loss                       (34,114)          (230)
Interest income (expense), net           587            365
Income (loss) before income taxes    (33,527)           135
Provision (benefit) for income taxes (10,729)         1,093

Net loss                            ($22,798)         ($958)

Net loss per common share             ($1.08)        ($0.05)

Weighted average common shares
 outstanding                          21,019         18,129

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                           AVID TECHNOLOGY, INC.
                  Condensed Consolidated Balance Sheets
                              (in thousands)

                                       March 31      December 31
                                         1996           1995
                                     (unaudited)
ASSETS:
Current assets:
   Cash and marketable securities      $52,814         $50,390
   Accounts receivable, net of
    allowances of $7,585 and
    $6,472 in 1996 and 1995,
    respectively                        92,318         107,859
   Inventories                          70,089          63,387
   Other current assets                 31,207          21,317
       Total current assets            246,428         242,953

Marketable securities                        0          30,102
Property and equipment, net             56,448          48,992
Other assets                             3,565           9,557
       Total assets                   $306,441        $331,604

LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
   Accounts payable and accrued
    expenses                           $53,394         $56,794
   Deferred revenue and other
    current liabilities                 24,225          23,899
       Total current liabilities        77,619          80,693

Long term debt                           2,559           2,945

Total stockholders' equity             226,263         247,966

       Total liabilities and
        stockholders' equity          $306,441        $331,604

CONTACT: Scott Higgins, Inv. Rel. Director, 508/640-3563

Patrice Burkett, Corp. Comm. Manager, 508/640-366