Avid (NASDAQ:AVID)
Historical Stock Chart
1 Year : From Jun 2012 to Jun 2013
Avid® (NASDAQ:
AVID) today reported GAAP revenues of $157.4 million for the
three-month period ended June 30, 2012, compared to $161.8 million for
the same period in 2011. The GAAP net loss for the second quarter was
$39.0 million, or $1.01 per share, compared to a GAAP net loss of $11.1
million, or $0.29 per share, in the second quarter of 2011.
Excluding revenue from the consumer product lines divested
on July 2nd, the revenue for the three-month period ended June 30,
2012 was $143.7 million and the revenue on the same basis for the
three-month period ended June 30, 2011 was $137.3 million.
The GAAP net loss for the second quarter of 2012 and 2011 included
amortization of intangible assets, stock-based compensation,
restructuring costs and costs and allowances related to divestitures,
acquisition and other costs, losses on assets held for sale and asset
sales, legal settlement for 2011 only and related tax adjustments
collectively totaling $34.9 million and $7.8 million, respectively.
Excluding these items, the non-GAAP net loss for the second quarter of
2012 was $4.1 million, or $0.11 per share, compared to non-GAAP net loss
of $3.4 million, or $0.09 per share, for the second quarter of 2011.
The GAAP operating loss for the second quarter of 2012 was $37.8 million
and excluding the items identified above, except tax adjustments, the
non-GAAP operating loss for the second quarter was $2.1 million.
“Our results for the second quarter were encouraging with 5%
year-on-year revenue growth for our ongoing business and a $10 million
sequential increase in our cash balance,” said Gary Greenfield, chairman
and CEO of Avid. “This performance reinforced the strategic direction we
took earlier this month and we are excited about our prospects for the
second half of the year.”
Revenues for the six-month period ended June 30, 2012 were $309.6
million, compared to revenues of $327.5 million for the same period in
2011. The GAAP net loss for the first six months of 2012 was $52.0
million, or $1.34 per share, compared to a GAAP net loss of $15.9
million, or $0.42 per share, for the same period in 2011. The GAAP net
loss for the six-month period ended June 30, 2012 included $40.5 million
of amortization of intangible assets, stock-based compensation,
restructuring costs and costs and allowances related to divestitures,
acquisition and other costs, loss on asset sales and related tax
adjustments. Excluding these items, the non-GAAP net loss was $11.5
million, or $0.30 per share, for the first half of 2012. The GAAP net
loss for the six-month period ended June 30, 2011 included $13.2 million
of amortization of intangible assets, stock-based compensation,
restructuring costs, legal settlement, acquisition-related costs, loss
on asset sales and related tax adjustments. Excluding these items, the
non-GAAP net loss for the six-month period ended June 30, 2011 was $2.7
million or $0.07 per share.
A reconciliation of GAAP to non-GAAP results is included in the tables
attached to this release.
The company’s cash balance on June 30, 2012 was $59.4 million. The
quarter-end cash balance excludes the proceeds from the sale of consumer
product lines of $14.5 million, a portion of which is being held in
escrow. It is expected that these proceeds will offset the majority of
cash cost associated with the Company’s 2012 restructuring plan.
The company continues to review certain estimates associated with the
divestiture of consumer product lines and estimates related to the
restructuring costs and costs and allowances related to divestitures. A
change in those estimates could result in adjustments to the company’s
financial statements in its Quarterly Report on Form 10-Q for the
quarter ended June 30, 2012, which could be material.
Conference Call
A conference call to discuss Avid’s second quarter 2012 financial
results will be held today, July 30, 2012 at 5:00 p.m. ET. The call will
be open to the public and can be accessed by dialing 719.457.2617 and
referencing confirmation code 4569475. The call and subsequent replay
will also be available on Avid’s website. To join the webcast via this
alternative, go to the Investors tab at www.avid.com
for complete details prior to the start of the conference call.
Use of Non-GAAP Financial Measures
This press release contains “non-GAAP financial measures” under the
rules of the U.S. Securities and Exchange Commission. Non-GAAP financial
measures are not based on a comprehensive set of accounting rules or
principles. This non-GAAP information supplements, and is not intended
to represent a measure of performance in accordance with, disclosures
required by generally accepted accounting principles, or GAAP. Non-GAAP
financial measures should be considered in addition to, not as a
substitute for or superior to, financial measures determined in
accordance with GAAP. The reconciliation of the GAAP to non-GAAP
financial measures is in the tables attached to this press release.
Management considers both GAAP and non-GAAP financial results in
managing our business. Non-GAAP financial measures are used internally,
for example, in establishing annual operating budgets, in assessing
operating performance and for measuring performance under incentive
compensation plans. Non-GAAP financial measures are also used in
operating and financial decision-making because we believe these
measures reflect our ongoing business and allow meaningful
period-to-period comparisons. We believe it is useful for investors and
others to also review both GAAP and non-GAAP measures in order to
understand and evaluate our current operating performance and future
prospects in the same manner as management and to compare in a
consistent manner the company’s current financial results with past
financial performance. The primary limitations associated with our use
of non-GAAP financial measures are that they may not include all items
of income and expense that affect our operations and that the non-GAAP
financial measures we use may not be directly comparable to those
reported by other companies. For example, terms referring to non-GAAP
financial measures used in this press release, such as non-GAAP net
loss, do not have standardized meanings. Other companies may use the
same or similarly named measures, but exclude different items, which may
not provide investors with a comparable view of our performance in
relation to other companies. We seek to compensate for this limitation
by providing a detailed reconciliation of the non-GAAP financial
measures to the most directly comparable GAAP measures in the tables
attached to this press release.
Use of Forward-Looking Statements
The financial results included in this release are preliminary and
unaudited. The contents of this release are subject to the completion
and filing of our Quarterly Report on Form 10-Q. This release may
include forward-looking statements, as defined by the Private Securities
Litigation Reform Act of 1995. Statements in this press release that
relate to future results or events are forward-looking statements and
are based on Avid’s current estimates and assumptions. Forward-looking
statements may be identified by the use of forward-looking words, such
as “anticipate,” “believe,” “should,” “estimate,” “expect,” “intend,”
“confidence,” “may,” “plan,” “feel,” “could,” “will,” and “would,” or
similar expressions. Actual results and events in future periods may
differ materially from those expressed or implied by these
forward-looking statements because of a number of risks, uncertainties
and other factors, including: adjustments that may be made to Avid's
preliminary financial results included in this release as a result of
the review of certain estimates associated with the sale of Avid’s
consumer audio and video product lines and restructuring costs and costs
and allowances related to divestitures; Avid’s ability to execute its
strategic plan and meet customer needs; Avid’s ability to realize
operational and financial benefits from the sale of its consumer audio
and video product lines and the reduction in workforce announced earlier
this month; Avid’s ability to sell its professional products through
retail sales channels following the divestiture of consumer products
sold through those sales channels; its ability to produce innovative
products in response to changing market demand, particularly in the
media industry; competitive factors; fluctuations in its revenue, based
on, among other things, Avid’s performance in particular geographies or
markets, fluctuations in foreign currency exchange rates, and seasonal
factors; adverse changes in economic conditions; Avid’s liquidity; and
other risk factors and uncertainties disclosed previously and from time
to time in Avid’s filings with the U.S. Securities and Exchange
Commission. In addition, the 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 these forward-looking statements at some
point in the future, Avid specifically disclaims any obligation to do
so, even if the estimates change.
About Avid
Avid creates the digital audio and video technology used to make the
most listened to, most watched and most loved media in the world – from
the most prestigious and award-winning feature films, music recordings,
television shows, to live concert tours and news broadcasts. Some of
Avid’s most influential and pioneering solutions include Media
Composer®, Pro Tools®, Interplay®, ISIS®, VENUE, Sibelius®, and System
5. For more information about Avid solutions and services, visit www.avid.com,
Flickr,
Twitter
and YouTube;
connect with Avid on Facebook;
or subscribe to Avid Industry
Buzz.
© 2012 Avid Technology, Inc. All rights reserved. Product features,
specifications, system requirements and availability are subject to
change without notice. All prices are MSRP for the U.S. and Canada only
and are subject to change without notice. Contact your local Avid office
or reseller for prices outside the U.S. and Canada. Avid, the Avid logo,
Fast Track, Media Composer, Pro Tools, Interplay, ISIS, and Sibelius are
trademarks or registered trademarks of Avid Technology, Inc. or its
subsidiaries in the United States and/or other countries. The Interplay
name is used with the permission of the Interplay Entertainment Corp.
which bears no responsibility for Avid products. All other trademarks
are the property of their respective owners.
AVID TECHNOLOGY, INC.
Condensed Consolidated Statements of Operations
(unaudited - in thousands, except per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2011(Revised)
2011(Revised)
2012
2012
Net revenues:
Products
$
125,874
$
129,488
$
245,812
$
266,234
Services
34,405
32,295
66,607
61,301
Less allowances related to divestitures
(2,848
)
(2,848
)
Total net revenues
$
157,431
161,783
$
309,571
327,535
Cost of revenues:
Products
66,637
64,023
127,850
127,888
Services
14,325
14,706
27,042
28,760
Amortization of intangible assets
649
685
1,294
1,351
Restructuring costs
1,913
1,913
Total cost of revenues
83,524
79,414
158,099
157,999
Gross profit
$
73,907
82,369
151,472
169,536
Operating expenses:
Research and development
26,900
30,453
54,381
60,426
Marketing and selling
43,454
45,851
89,380
90,917
General and administrative
14,324
14,234
29,214
29,219
Amortization of intangible assets
1,105
2,161
2,717
4,306
Restructuring costs (recoveries), net
15,841
162
16,009
(1,314
)
Loss on sales of assets
10,045
597
9,793
597
Total operating expenses
111,669
93,458
201,494
184,151
Operating loss
($37,762
)
(11,089
)
(50,022
)
(14,615
)
Interest and other income (expense), net
(379
)
(645
)
(573
)
(945
)
Loss before income taxes
($38,141
)
(11,734
)
(50,595
)
(15,560
)
Provision for (benefit from) income taxes, net
903
(590
)
1,426
367
Net loss
($39,044
)
($11,144
)
($52,021
)
($15,927
)
Net loss per common share - basic & diluted
($1.01
)
($0.29
)
($1.34
)
($0.42
)
Weighted-average common shares outstanding - basic & diluted
38,778
38,413
38,720
38,323
AVID TECHNOLOGY, INC.
(unaudited - in thousands, except per share data)
Reconciliations of GAAP financial
measures to Non-GAAP financial measures:
Three Months Ended June 30, 2012
Gross
Operating
Operating
Tax
Net
Revenues
COGS
Profit
Expenses
Loss
Provision
Loss
GAAP
$
157,431
83,524
73,907
111,669
($37,762
)
903
($39,044
)
Amortization of intangible assets
(649
)
649
(1,105
)
$
1,754
1,754
Restructuring costs, and costs and allowances related to divestitures
2,848
(1,913
)
4,761
(15,841
)
$
20,602
20,602
Acquisition and other costs (a)
(974
)
$
974
974
Loss on assets held for sale
(10,045
)
$
10,045
10,045
Tax adjustment
674
(674
)
Stock-based compensation included in:
Cost of products revenues
(110
)
110
$
110
110
Cost of services revenues
(151
)
151
$
151
151
Research and development expenses
(268
)
$
268
268
Marketing and selling expenses
63
($63
)
(63
)
General and administrative expenses
(1,776
)
$
1,776
1,776
Non-GAAP
$
160,279
$
80,701
$
79,578
$
81,723
($2,145
)
$
1,577
($4,101
)
Weighted-average shares outstanding - diluted
38,778
Non-GAAP net loss per share - diluted
($0.11
)
(a) Represents costs included in general and administrative expenses
Three Months Ended June 30, 2011 (Revised)
Gross
Operating
Operating
Tax
Net
Revenues
COGS
Profit
Expenses
Loss
Provision
Loss
GAAP
161,783
79,414
82,369
93,458
($11,089
)
(590
)
($11,144
)
Amortization of intangible assets
(685
)
685
(2,161
)
2,846
2,846
Restructuring recoveries, net
(162
)
162
162
Legal settlement and acquisition-related costs (a)
(392
)
392
392
Loss on sales of assets
(597
)
597
597
Tax adjustment
245
(245
)
Stock-based compensation included in:
Cost of products revenues
(111
)
111
111
111
Cost of services revenues
(277
)
277
277
277
Research and development expenses
(427
)
427
427
Marketing and selling expenses
(1,356
)
1,356
1,356
General and administrative expenses
(1,846
)
1,846
1,846
Non-GAAP
161,783
78,341
$
83,442
$
86,517
($3,075
)
($345
)
($3,375
)
Weighted-average shares outstanding - diluted
38,413
Non-GAAP net loss per share - diluted
($0.09
)
(a) Represents costs included in general and administrative
expenses
AVID TECHNOLOGY, INC.
(unaudited - in thousands, except per share data)
Reconciliations of GAAP financial measures to Non-GAAP financial
measures:
Six Months Ended June 30, 2012
Gross
Operating
Operating
Tax
Net
Revenues
COGS
Profit
Expenses
Loss
Provision
(Loss) Income
GAAP
309,571
158,099
$
151,472
$
201,494
($50,022
)
$
1,426
($52,021
)
Amortization of intangible assets
(1,294
)
1,294
(2,717
)
4,011
4,011
Restructuring costs, and costs and allowancesrelated to
divestitures
2,848
(1,913
)
4,761
(16,009
)
20,770
20,770
Acquisition and other costs (a)
(1,457
)
1,457
1,457
Loss on assets held for sale
(9,793
)
9,793
9,793
Tax adjustment
926
(926
)
Stock-based compensation included in:
Cost of products revenues
(204
)
204
204
204
Cost of services revenues
(308
)
308
308
308
Research and development expenses
(575
)
575
575
Marketing and selling expenses
(1,198
)
1,198
1,198
General and administrative expenses
(3,091
)
3,091
3,091
Non-GAAP
$
312,419
$
154,380
$
158,039
$
166,654
($8,615
)
$
2,352
($11,540
)
Weighted-average shares outstanding - diluted
38,720
Non-GAAP net loss per share - diluted
($0.30
)
(a) Represents costs included in general and administrative expenses
Six Months Ended June 30, 2011 (Revised)
Gross
Operating
Operating
Tax
Net
Revenues
COGS
Profit
Expenses
(Loss) Income
Provision
Loss
GAAP
327,535
157,999
$
169,536
$
184,151
($14,615
)
$
367
($15,927
)
Amortization of intangible assets
(1,351
)
1,351
(4,306
)
5,657
5,657
Restructuring and other costs, net
1,314
(1,314
)
(1,314
)
Legal settlement and acquisition-related costs (a)
(392
)
392
392
Loss on sales of assets
(597
)
597
597
Tax adjustment
300
(300
)
Stock-based compensation included in:
Cost of products revenues
(249
)
249
249
249
Cost of services revenues
(545
)
545
545
545
Research and development expenses
(899
)
899
899
Marketing and selling expenses
(2,574
)
2,574
2,574
General and administrative expenses
(3,882
)
3,882
3,882
Non-GAAP
327,535
155,854
$
171,681
$
172,815
($1,134
)
$
667
($2,746
)
Weighted-average shares outstanding - diluted
38,323
Non-GAAP net loss per share - diluted
($0.07
)
(a) Represents costs included in general and administrative expenses
Revenue Summary:
Three Months Ended
Six Months Ended
June 30,
June 30,
2011
2011
2012
(Revised)
2012
(Revised)
Video revenues
$
98,942
$
96,667
$
182,948
$
190,686
Audio revenues
61,337
65,116
129,471
136,849
Less allowances related to divestitures
(2,848
)
(2,848
)
Total net revenues
$
157,431
$
161,783
$
309,571
$
327,535
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(unaudited - in thousands)
December 31,
June 30,
2011
2012
(Revised)
ASSETS:
Current assets:
Cash and cash equivalents
$
59,383
$
32,855
Accounts receivable, net of allowances of $19,187 and $15,985
at June 30, 2012 and December 31, 2011, respectively
89,180
104,305
Inventories
77,813
111,397
Deferred tax assets, net
1,462
1,480
Prepaid expenses
8,580
7,652
Assets held for sale (a)
12,608
-
Other current assets
15,948
14,405
Total current assets
264,974
272,094
Property and equipment, net
49,153
53,487
Intangible assets, net
10,996
18,524
Goodwill
238,338
246,592
Other assets
8,496
11,568
Total assets
$
571,957
$
602,265
LIABILITIES AND STOCKHOLDERS' EQUITY:
Accounts payable
38,990
42,533
Accrued compensation and benefits
26,411
31,447
Accrued expenses and other current liabilities
46,442
35,108
Income taxes payable
10,877
8,950
Deferred revenues
57,015
45,768
Total current liabilities
179,735
163,806
Long-term liabilities
29,704
27,885
Total liabilities
209,439
191,691
Stockholders' equity:
Common stock
423
423
Additional paid-in capital
1,024,082
1,019,200
Accumulated deficit
(588,219
)
(532,477
)
Treasury stock at cost, net of reissuances
(78,008
)
(82,301
)
Accumulated other comprehensive income
4,240
5,729
Total stockholders' equity
362,518
410,574
Total liabilities and stockholders' equity
$
571,957
$
602,265
(a) - Assets held for sale comprise
10,703
Inventory
60
Prepaid expense
372
Capitalized Software
11,518
Intangibles and Goodwill
(10,045)
Less write down to Fair Value
12,608
AVID TECHNOLOGY, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited - in thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2011
2011
2012
(Revised)
2012
(Revised)
Cash flows from operating activities:
Net loss
($39,044
)
($11,144
)
($52,021
)
($15,927
)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
Depreciation and amortization
10,549
7,983
18,123
15,875
Provision for doubtful accounts
15
315
(62
)
459
Non-cash provision for restructuring
(4,761
)
-
(4,761
)
125
(Gain)/Loss on Divestitures
10,045
-
10,045
-
(Gain)/Loss on Disposal of Fixed Assets
(255
)
596
(257
)
591
Compensation expense from stock grants and options
2,242
4,016
5,375
8,149
Non-cash interest expense
-
(80
)
73
-
Unrealized foreign currency transaction losses
(3,146
)
2,705
(848
)
6,490
Changes in deferred tax assets and liabilities, excluding initial
effects of acquisitions
451
(4
)
823
(4
)
Changes in operating assets and liabilities, excluding initial
effects of acquisitions:
Accounts receivable
495
(2,497
)
17,352
2,783
Inventories
28,427
(5,285
)
36,158
(22,161
)
Prepaid expenses and other current assets
(13,891
)
1,491
(14,866
)
(208
)
Accounts payable
1,845
(2,496
)
(3,531
)
(2,389
)
Accrued expenses, compensation and benefits, and other liabilities
17,820
(5,002
)
5,482
(20,244
)
Income taxes payable
2,936
(1,490
)
2,170
(2,031
)
Deferred revenues
(260
)
2,916
13,171
14,460
Net cash provided by (used in) operating activities
13,468
(7,976
)
32,426
(14,032
)
Cash flows from investing activities:
Purchases of property and equipment
(1,901
)
(2,300
)
(5,489
)
(5,845
)
Decrease (increase) in other long-term assets
(1,321
)
156
(3
)
(461
)
Net cash used in investing activities
(3,222
)
(2,144
)
(5,492
)
(6,306
)
Cash flows from financing activities:
(Payments related to) proceeds from the issuance of common stock
under employee stock plans, net
252
1,222
80
1,349
Proceeds from revolving credit facilities
-
13,000
1,000
21,000
Payments on revolving credit facilities
-
-
(1,000
)
(8,000
)
Net cash (used in) provided by financing activities
252
14,222
80
14,349
Effect of exchange rate changes on cash and cash equivalents
(796
)
235
(486
)
764
Net increase (decrease) in cash and cash equivalents
9,702
4,337
26,528
(5,225
)
Cash and cash equivalents at beginning of period
49,681
33,220
32,855
42,782
Cash and cash equivalents at end of period
$
59,383
$
37,557
$
59,383
$
37,557
AVID TECHNOLOGY, INC.
(unaudited - in Thousands)
Supplemental Revenue Information
Twelve MonthsEnded Dec 31,2010
Three MonthsEnded Mar 31,2011
Three MonthsEnded Jun 30,2011
Three MonthsEnded Sep 30,2011
Three MonthsEnded Dec 31,2011
Twelve MonthsEnded Dec 31,2011
Three MonthsEnded Mar 31,2012
Three MonthsEnded Jun 30,2012
Six MonthsEnded Jun 30,2012
Percentage ChangeThree
Months EndedJune 30, 2011compared to
June 30,2012
Revenue
Video
Product
281,898
66,510
64,612
67,605
79,548
278,276
53,422
65,017
118,439
0.6%
Services
113,429
27,508
31,001
31,829
36,177
126,515
30,584
33,048
63,632
6.6%
Sub-Total
395,327
94,018
95,613
99,434
115,726
404,791
84,006
98,065
182,071
2.6%
Audio
Product
279,409
70,253
65,002
64,002
67,919
267,176
66,516
58,009
124,525
-10.8%
Services
5,002
1,480
1,169
1,261
1,156
5,066
1,618
1,358
2,975
16.2%
Sub-Total
284,411
71,733
66,171
65,264
69,075
272,242
68,134
59,366
127,500
-10.3%
Total
Product
561,307
136,763
129,614
131,608
147,467
545,452
119,938
123,026
242,964
-5.1%
Services
118,430
28,988
32,170
33,090
37,333
131,581
32,201
34,406
66,607
7.0%
Total
679,737
165,751
161,783
164,698
184,800
677,033
152,139
157,431
309,571
-2.7%
Divested Consumer Product Lines
Video
Product
30,793
8,779
7,532
6,097
5,565
27,973
4,369
2,310
6,679
-69.3%
Services
-
-
-
-
-
-
-
-
-
Sub-Total
30,793
8,779
7,532
6,097
5,565
27,973
4,369
2,310
6,679
-69.3%
Audio
Product
72,694
16,258
16,939
15,364
14,881
63,442
12,884
11,392
24,276
-32.7%
Services
-
-
-
-
-
-
-
-
-
Sub-Total
72,694
16,258
16,939
15,364
14,881
63,442
12,884
11,392
24,276
-32.7%
Total
Product
103,487
25,037
24,471
21,461
20,446
91,415
17,253
13,702
30,955
-44.0%
Services
-
-
-
-
-
-
-
-
-
Total
103,487
25,037
24,471
21,461
20,446
91,415
17,253
13,702
30,955
-44.0%
On-going Business
Video
Product
251,105
57,731
57,080
61,508
73,983
250,303
49,053
62,707
111,760
9.9%
Services
113,429
27,508
31,001
31,829
36,177
126,515
30,584
33,048
63,632
6.6%
Sub-Total
364,534
85,239
88,081
93,337
110,161
376,818
79,637
95,755
175,391
8.7%
Audio
Product
206,715
53,995
48,063
48,638
53,038
203,734
53,632
46,617
100,249
-3.0%
Services
5,002
1,480
1,169
1,261
1,156
5,066
1,618
1,358
2,975
16.2%
Sub-Total
211,717
55,475
49,232
49,900
54,194
208,800
55,250
47,974
103,224
-2.6%
Total
Product
457,820
111,726
105,143
110,147
127,021
454,037
102,685
109,323
212,008
4.0%
Services
118,430
28,988
32,170
33,090
37,333
131,581
32,201
34,406
66,607
7.0%
Total
576,250
140,714
137,312
143,237
164,354
585,618
134,886
143,729
278,615
4.7%
|
