Avid® (Nasdaq:AVID) announced today new commercial alliances in
Greater China that have been established to improve market coverage
and better support the various customers and resellers across the
region, building a stronger foundation to execute the Company’s
go-to-market strategy and growth plans in this strategically
important market. Specifically, Avid has appointed two commercial
partners as the new exclusive distributors to cover Greater China
overall, each of which has extensive experience and unique
strengths to best serve the market. In combination, they will have
exclusive responsibility for distributing and supporting Avid’s
extensive portfolio of products and services across all market
segments in mainland China, Hong Kong, Macau and Taiwan, while
managing the extensive channel partner network of more than 35
certified Avid resellers across these geographies.
Digital Media Technology Co. Ltd. (DMT) is now
the exclusive (master) distributor for all Avid Pro Audio and Live
Sound products, as well as Avid Video and Graphics products for the
specific Professional Video & Film market segments in Greater
China with immediate effect. Headquartered in Hong Kong, and
a highly experienced and large reseller of Avid professional audio
and video solutions for over 20 years, DMT offers technologically
advanced solutions to its customers and partners with the highest
level of support across all disciplines—from pre-sales consulting,
through installation and commissioning, to after sales support.
New Digital Technology Holdings Ltd. (NDT) is
now the exclusive (master) distributor for all Avid Video and
Graphics products covering all Broadcast & Media market
segments in Greater China with immediate effect. As a very
experienced and accomplished Avid reseller and systems integrator
covering the Broadcast & Media market for almost two decades,
and which is also based in Hong Kong, NDT is a renowned distributor
and systems solution provider in the fields of broadcasting and
media technology in the Greater China region and Southeast
Asia.
These new five-year agreements with Digital Media Technology Co.
Ltd. (DMT) and New Digital Technology Holdings Ltd. (NDT) will not
only help ensure a stronger focus on the unique requirements across
Avid’s diverse customer and reseller base in the region, but are
expected to dramatically improve upon the Company’s execution and
performance against the market opportunity. Under both agreements,
and during the full five-year period, contractual guarantees to
Avid with minimum performance commitments deliver a minimum of
6-10% growth per annum during the period of 2018 through 2022.
With these appointments, Avid is also announcing that its former
go-to-market alliance and exclusive distributor agreement with
Beijing Jetsen Technology Co. Ltd. (Jetsen) was terminated at the
end of December 2017. Jetsen did not complete the purchase of Avid
shares as anticipated under the previously announced securities
purchase agreement dated January 26, 2017, and the agreement has
expired in accordance with its terms.
“Greater China’s media and entertainment industry is a robust
market with solid growth potential. Avid is developing and
shipping new products and solutions at a faster pace than ever
before to help our broadcast, film, music and live sound customers
across this region to participate in this opportunity by excelling
in digital content creation, management and delivery,” said Louis
Hernandez, Jr., Chairman and Chief Executive Officer, Avid. “By
appointing these trusted, experienced and specialized market
leaders DMT and NDT, Avid is today going even further to attend to
the unique needs of all of our customers and partners in the region
so that they will be served and supported to best meet their needs.
Looking forward together, we’re in the best possible position to
empower our reseller network and clients across the region to fully
capitalize on the opportunities from the digitization of their
businesses.”
Clement Choi, Managing Director, Digital Media Technology Co.
Ltd., commented, “We are incredibly proud and honored to be
entering into this new phase of our relationship with Avid. Content
creators in Greater China are becoming increasingly influential,
not only in local markets, but globally and this is presenting new
and exciting opportunities both in established markets and in new
cutting-edge disciplines. This partnership with Avid, and the
extensive range of innovative products they offer, puts us in a
unique position to be able to pursue and engage with our clients at
a whole new level.”
Daniel C.K. Fung, Chairman and CEO of NDT Group, commented, “We
want our customers in the Greater China region to have the most
open and effective media platform addressing the modern needs of
content creation, asset protection, distribution and consumption.
Avid offers leading solutions for the evolving media and broadcast
industry. NDT is really excited about this partnership and will
pledge to become a well-rounded technology enabler for our clients
to deliver services for everyone to experience the advancement of
media and entertainment technology.”
The agreements with DMT and NDT enable Avid to deliver on its
commitment to providing its client community the most flexible
deployment models, licensing options and commercial structures with
future cloud and enterprise offerings for the region, as well as
more localized and tailored solutions to meet the needs of the
customers across Greater China. With DMT and NDT together taking
responsibility for Avid’s overall go-to-market activities in
Greater China, combined with their own very strong technical
support and customer care capabilities, customers and partners in
the region can expect improved support to best serve their business
and operational needs.
Forward-looking StatementsThe information
provided in this press release includes forward-looking statements
that involve risks and uncertainties. Such statements are made in
reliance upon the safe harbor provisions of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements, which are based on certain
assumptions and describe Avid’s future plans, strategies and
expectations, can generally be identified by the use of
forward-looking terms such as "believe," "expect," "may," "will,"
"should," "could," "seek," "intend," "plan," "estimate,"
"anticipate" or other comparable terms. All statements in this
release that are not based on historical fact are "forward-looking
statements." Forward-looking statements include but are not limited
to: the anticipated benefits of the planned relationship with DMT
and NDT, respectively; the expected results of our go-to-market
activities in Greater China; expected growth of revenues and cash;
the effects of the transactions described in this release on future
financial and operating results; and other statements that are not
historical facts. Among the risks and uncertainties that could
cause actual results to differ from those described in
forward-looking statements are the following: Avid’s ability to
accelerate growth of its Cloud-enabled Avid Everywhere platform and
solution suites based on its agreements with DMT and NDT; risks
related to the disruption of Avid’s existing operations in Greater
China; the risk that Avid may fail to realize the benefits expected
from the agreements; the risk that Avid’s existing resellers in
Greater China will react negatively to the announcement of the
transactions; the risk that Avid’s contractual partners may not
perform as anticipated; the risk that the announcement of the
transactions, including the termination of the agreements with
Jetsen described in this release could have adverse effects on the
market price of Avid’s common stock; and the risk that the
announcement of the transactions described in this release could
have an adverse effect on Avid’s operating results and businesses
generally. The risks included above are not exhaustive. Other
factors that could adversely affect Avid’s business and prospects
are described in the filings made by Avid with the SEC. Avid
expressly disclaims any obligation or undertaking to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise.
About Digital Media Technology Co.
Ltd.Digital Media Technology Co. Ltd. (DMT) was founded in
Hong Kong in 1990 and specializes in providing turnkey solutions
for professional audio and video systems for radio and television
broadcasting, film production, music recording and post production,
internet broadcasting, and live sound and installation. With
headquarters in Hong Kong, we have opened several branches
throughout China including large offices in Beijing and Guangzhou,
and also sales contact points in Shanghai and numerous other
cities. For more than 27 years, the company has built on a
foundation of a solid technical team to provide pre-sales, system
design, turnkey system integration and after-sales services for
professional customers in and around the Greater China region. For
more information visit www.dmtpro.com.
About New Digital Technology Holdings Ltd.New
Digital Technology Holdings Ltd. (NDT) is a renowned distributor
and systems solution provider in the fields of broadcasting and
media technology in the Greater China region and Southeast Asia
specializing in the television, media and telecommunications
industries. The company has headquartered in Hong Kong with
regional offices Beijing, Shanghai, Guangzhou, Chengdu, Macau and
Taipei with a team of over 200 employees. With versatile range of
services consisting of consulting & development, systems
integration, service and support, NDT offers total solution
covering expertise in the design, development and implementation of
media technology infrastructures. For more information visit
www.ndtchina.com.
About AvidThrough Avid Everywhere®, Avid
delivers the most open and efficient media platform, connecting
content creation with collaboration, asset protection,
distribution, and consumption. Avid’s preeminent customer community
uses Avid’s comprehensive tools and workflow solutions to create,
distribute and monetize the most watched, loved and listened to
media in the world—from prestigious and award-winning feature films
to popular television shows, news programs and televised sporting
events, and celebrated music recordings and live concerts. With the
most flexible deployment and pricing options, Avid’s
industry-leading solutions include Media Composer®, Pro Tools®,
Avid NEXIS®, MediaCentral®, iNEWS®, AirSpeed®, Sibelius®, Avid
VENUE™, Avid FastServe™, Maestro™, and PlayMaker™. For more
information about Avid solutions and services, visit www.avid.com,
connect with Avid on Facebook, Instagram, Twitter, YouTube,
LinkedIn, or subscribe to Avid Blogs.
© 2018 Avid Technology, Inc. All rights reserved. Avid, the Avid
logo, Avid Everywhere, Avid NEXIS, Avid FastServe, AirSpeed, iNews,
Maestro, MediaCentral, Media Composer, PlayMaker, Pro Tools, Avid
VENUE, and Sibelius are trademarks or registered trademarks of Avid
Technology, Inc. or its subsidiaries in the United States and/or
other countries. All other trademarks are the property of their
respective owners. Product features, specifications, system
requirements and availability are subject to change without
notice.
PR Contact:AvidJim
Sheehanjim.sheehan@avid.com+1.978.640.3152
Investor Contact:AvidDean
Ridlondean.ridlon@avid.com+1.978.640.5021
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