Revenue and bookings exceed guidance, met
guidance on all other key metrics
Avid® (NASDAQ:AVID) today announced its third quarter 2017
financial results and provided its guidance for the fourth quarter
of 2017.
Highlights of Third Quarter 2017 Results
- Bookings were $102.8 million, above the upper end of guidance.
Constant Currency Bookings were $107.9 million, in line with
guidance.
- GAAP Revenue was $105.3 million, above the upper end of
guidance.
- GAAP Gross Margin was 57.3%. Non-GAAP Gross Margin was
59.3%.
- GAAP Operating Expenses were $56.7 million. Non-GAAP Operating
Expenses were $53.9 million, in line with guidance.
- GAAP Net Income was $72,000.
- Adjusted EBITDA was $11.5 million, in line with guidance.
- GAAP Net Cash provided by Operating Activities was
$31,000.
- Adjusted Free Cash Flow was $0.5 million, at the upper end of
guidance. This is the fourth consecutive quarter of positive
Adjusted Free Cash Flow. For the first nine months of 2017,
Adjusted Free Cash Flow was up $55.7 million compared to the same
period in 2016.
Avid Progressing on Strategic Growth
Objectives
- Enterprise: During the third quarter, Avid signed several
multi-year enterprise deals with large customers, including Viacom
and NHK, Japan’s national public broadcaster; total licenses for
the MediaCentral platform as of the end of the third quarter were
nearly 51,000, up 27% year-over-year.
- Individual: Direct digital bookings, primarily with individual
creative professionals, were up 35% year-over-year; individual
subscriptions surpassed 84,000, up 69% year-over-year.
- Visibility: Increasing recurring revenue bookings is positively
impacting Avid’s revenue backlog of $488 million, which grew $51
million year-over-year and is increasing visibility.
“We are pleased to have delivered another quarter of meeting or
exceeding our guidance for all our key metrics,” said Louis
Hernandez, Jr., Chairman and Chief Executive Officer of Avid. “The
completion of the transformation in the second quarter of 2017 has
positioned us to drive profitable growth, increase revenue
visibility and cash flow. In the third quarter, we achieved
meaningful growth across bookings, revenue excluding pre-2011 and
eliminating PCS, adjusted EBITDA and adjusted free cash flow.”
Mr. Hernandez continued, “Customers ranging from the largest
media enterprises to individual artists continue to adopt Avid’s
innovative new solutions. With our cloud-enabling
MediaCentral platform, enterprises are unlocking greater strategic
value from their Avid partnership as we help them to achieve new
economies of scale while they work to engage audiences on any
device with increasing amounts of content. Individual
creatives and teams are empowered with Avid’s tools and value-added
communities to answer the escalating demand for content. I am
excited about Avid’s future as we work to continue our growth,
further improve our profitability and increase our free cash
flow.”
Expanded Loan Facility
On November 9, 2017, Avid and Cerberus agreed to increase the
existing term loan by $15.0 million and expand the amount of
revolving credit by $5.0 million for a $20.0 million total increase
in available liquidity. The amended loan facility provides
Avid an option to purchase $15.0 million of its convertible bonds.
In addition, the Company and Cerberus agreed to a revised
calculation for the leverage ratio requirement in order to reflect
the non-cash revenue impact related to the Company’s adoption of
the new revenue standard (Accounting Standards Codification
606).
Financial Guidance
Avid’s fourth quarter 2017 financial guidance is provided in the
table below.
“We’re pleased with our third quarter and year-to-date
performance,” said Brian E. Agle, Senior Vice President and Chief
Financial Officer of Avid. “Our quarter represents an
important step toward growth. We will continue our focused
execution on growing revenue, managing expenses and further
increasing free cash flow and liquidity.”
Fourth Quarter 2017 Guidance
|
(in $
millions) |
|
Bookings
(Constant Currency) |
$118 -
$132 |
Bookings |
$112 -
$126 |
Revenue |
$103 -
$113 |
Non-GAAP
Operating Expenses |
$48 -
$52 |
Adjusted
EBITDA |
$14 -
$20 |
Adjusted
Free Cash Flow |
$(4) -
$4 |
All guidance presented by the Company is inherently uncertain
and subject to numerous risks and uncertainties. Avid’s actual
future results of operations and cash flows could differ materially
from those shown in the table above. For a discussion of some of
the key assumptions underlying the guidance, as well as the key
risks and uncertainties associated with these forward-looking
statements, please see “Forward Looking Statements” below as well
as the Avid Technology Third Quarter and Full Year 2017 Business
Update presentation posted on Avid’s Investor Relations
website.
Non-GAAP Financial Measures
Avid includes non-GAAP financial measures in this press release,
including Adjusted EBITDA, Adjusted Free Cash Flow, non-GAAP
Operating Income (loss), non-GAAP Operating Expenses, non-GAAP
Gross Margin, Adjusted EBITDA margin and Adjusted Free Cash Flow
conversion of Adjusted EBITDA. The Company also includes the
operational metrics of bookings, revenue backlog and recurring
revenue bookings in this release. Avid believes the non-GAAP
financial measures and operational metrics provided in this release
provide helpful information to investors with respect to evaluating
the Company’s performance. Unless noted, all financial information
is reported based on actual exchange rates. Definitions of
the non-GAAP financial measures are included in our Form 8-K filed
today. Reconciliations of the non-GAAP financial measures in
this release to the Company's comparable GAAP financial measures
for the periods presented are set forth below and are also included
in the supplemental financial and operational data sheet available
on our investor relations webpage at ir.avid.com, which also
includes definitions of the operational metrics.
The earnings release also includes forward-looking non-GAAP
financial measures, including Adjusted EBITDA, non-GAAP Operating
Expenses and Adjusted Free Cash Flow. Reconciliations of these
forward-looking non-GAAP financial measures were not included in
the earnings release due to the high variability and difficulty in
making accurate forecasts and projections of some of the excluded
information, together with some of the excluded information not
being ascertainable or accessible at this time. As a result,
the Company is unable to quantify certain amounts that would be
required to be included in the most directly comparable GAAP
financial measure without unreasonable efforts.
Conference Call
Avid will host a conference call to discuss its financial
results for the third quarter 2017 on Thursday, November 9, 2017 at
5:00 p.m. ET. The call will be open to the public and can be
accessed by dialing 719-325-2278 and referencing confirmation code
2768857. You may also listen to the call on the Avid Investor
Relations website. To listen via the website, go to the
events tab at ir.avid.com for complete details prior to the start
of the conference call. A replay of the call will also be available
on the Avid Investor Relations website shortly after the completion
of the call.
Forward-Looking Statements
Certain information provided in this press release, including
the tables attached hereto, include forward-looking statements that
involve risks and uncertainties, including projections and
statements about our anticipated plans, objectives, expectations
and intentions. Among other things, this press release
includes estimated results of operations for the quarter ending
December 31, 2017, which estimates are based on a variety of
assumptions about key factors and metrics that will determine our
future results of operations, including, for example, anticipated
market uptake of new products, realization of identified efficiency
programs and market-based cost inflation. Other
forward-looking statements include, without limitation, statements
based upon or otherwise incorporating judgments or estimates
relating to future performance such as future operating results and
expenses; earnings; bookings; backlog; revenue backlog conversion
rate; product mix and free cash flow; our long-term and recent cost
savings initiatives and the anticipated benefits therefrom; our
future strategy and business plans; our product plans, including
products under development, such as cloud and subscription based
offerings; our liquidity and ability to raise capital and our
liquidity. The projected future results of operations, and
the other forward-looking statements in this release, are based on
current expectations as of the date of this release and subject to
known and unknown risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by
such statements, including but not limited to the effect on our
sales, operations and financial performance resulting from: our
liquidity; our ability to execute our strategic plan, including
cost savings initiatives, and meet customer needs; our ability to
retain and hire key personnel; our ability to produce innovative
products in response to changing market demand, particularly in the
media industry; our ability to successfully accomplish our product
development plans; competitive factors; history of losses;
fluctuations in our revenue based on, among other things, our
performance and risks in particular geographies or markets; our
higher indebtedness and ability to service it and meet the
obligations thereunder; restrictions in our credit facilities; our
move to a subscription model and related effect on our revenues and
ability to predict future revenues; elongated sales cycles;
fluctuations in foreign currency exchange rates; seasonal factors;
adverse changes in economic conditions; variances in our revenue
backlog and the realization thereof; the identified material
weaknesses in our internal control over financial reporting; and
the possibility of legal proceedings adverse to our company.
Moreover, the business may be adversely affected by future
legislative, regulatory or changes, including tax law changes, as
well as other economic, business and/or competitive factors.
The risks included above are not exhaustive. Other
factors that could adversely affect our business and prospects are
set forth in our public filings with the SEC. Forward-looking
statements contained herein are made only as to the date of this
press release and we undertake no obligation to update or revise
any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
law.
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.
© 2017 Avid Technology, Inc. All rights reserved. Avid, the Avid
logo, Avid Everywhere, Avid Artist | DNxIV, 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.
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
(unaudited
- in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
Net
revenues: |
|
|
|
|
|
|
|
|
|
Products |
|
$ |
54,319 |
|
|
$ |
63,740 |
|
|
$ |
152,980 |
|
|
$ |
223,841 |
|
|
Services |
|
|
50,946 |
|
|
|
55,279 |
|
|
|
158,765 |
|
|
|
172,794 |
|
|
Total net
revenues |
|
|
105,265 |
|
|
|
119,019 |
|
|
|
311,745 |
|
|
|
396,635 |
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues: |
|
|
|
|
|
|
|
|
|
Products |
|
|
29,485 |
|
|
|
26,793 |
|
|
|
80,478 |
|
|
|
82,405 |
|
|
Services |
|
|
13,472 |
|
|
|
14,885 |
|
|
|
41,747 |
|
|
|
45,126 |
|
|
Amortization of
intangible assets |
|
|
1,950 |
|
|
|
1,950 |
|
|
|
5,850 |
|
|
|
5,850 |
|
|
Total cost of
revenues |
|
|
44,907 |
|
|
|
43,628 |
|
|
|
128,075 |
|
|
|
133,381 |
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
60,358 |
|
|
|
75,391 |
|
|
|
183,670 |
|
|
|
263,254 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research and
development |
|
|
16,025 |
|
|
|
19,953 |
|
|
|
51,904 |
|
|
|
62,791 |
|
|
Marketing and
selling |
|
|
25,652 |
|
|
|
27,231 |
|
|
|
80,481 |
|
|
|
89,027 |
|
|
General and
administrative |
|
|
15,193 |
|
|
|
13,822 |
|
|
|
43,268 |
|
|
|
48,359 |
|
|
Amortization of
intangible assets |
|
|
362 |
|
|
|
567 |
|
|
|
1,088 |
|
|
|
2,135 |
|
|
Restructuring
(recoveries) costs, net |
|
|
(582 |
) |
|
|
5,314 |
|
|
|
6,464 |
|
|
|
7,878 |
|
|
Total operating
expenses |
|
|
56,650 |
|
|
|
66,887 |
|
|
|
183,205 |
|
|
|
210,190 |
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
3,708 |
|
|
|
8,504 |
|
|
|
465 |
|
|
|
53,064 |
|
|
|
|
|
|
|
|
|
|
|
Interest
and other expense, net |
|
|
(4,701 |
) |
|
|
(4,707 |
) |
|
|
(13,465 |
) |
|
|
(14,049 |
) |
(Loss)
income before income taxes |
|
|
(993 |
) |
|
|
3,797 |
|
|
|
(13,000 |
) |
|
|
39,015 |
|
|
|
|
|
|
|
|
|
|
|
Benefit
from income taxes |
|
|
(1,065 |
) |
|
|
(5,321 |
) |
|
|
(326 |
) |
|
|
(3,983 |
) |
Net income
(loss) |
|
$ |
72 |
|
|
$ |
9,118 |
|
|
$ |
(12,674 |
) |
|
$ |
42,998 |
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per common share - basic |
|
$ |
0.00 |
|
|
$ |
0.23 |
|
|
$ |
(0.31 |
) |
|
$ |
1.08 |
|
Net income
(loss) per common share - diluted |
|
$ |
0.00 |
|
|
$ |
0.23 |
|
|
$ |
(0.31 |
) |
|
$ |
1.08 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic |
|
|
41,133 |
|
|
|
40,194 |
|
|
|
40,954 |
|
|
|
39,814 |
|
Weighted-average common shares outstanding - diluted |
|
|
41,355 |
|
|
|
40,476 |
|
|
|
40,954 |
|
|
|
39,950 |
|
|
|
|
|
|
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
|
|
Reconciliations of GAAP financial measures to Non-GAAP
financial measures |
|
|
|
|
(unaudited - in
thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
Non-GAAP
revenue |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
GAAP
revenue |
|
$ |
105,265 |
|
|
$ |
119,019 |
|
|
$ |
311,745 |
|
|
$ |
396,635 |
|
Amortization of
acquired deferred revenue |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
594 |
|
Non-GAAP
revenue |
|
|
105,265 |
|
|
|
119,019 |
|
|
|
311,745 |
|
|
|
397,229 |
|
Pre-2011 Revenue |
|
|
142 |
|
|
|
5,368 |
|
|
|
907 |
|
|
|
22,504 |
|
Elim PCS |
|
|
- |
|
|
|
12,000 |
|
|
|
1,700 |
|
|
|
44,800 |
|
Non-GAAP
Revenue w/o Pre-2011 and Elim |
|
|
105,123 |
|
|
|
101,651 |
|
|
|
309,138 |
|
|
|
329,925 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit |
|
|
|
|
|
|
|
|
GAAP gross
profit |
|
|
60,358 |
|
|
|
75,391 |
|
|
|
183,670 |
|
|
|
263,254 |
|
Amortization of
acquired deferred revenue |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
594 |
|
Amortization of
intangible assets |
|
|
1,950 |
|
|
|
1,950 |
|
|
|
5,850 |
|
|
|
5,850 |
|
Stock-based
compensation |
|
|
63 |
|
|
|
157 |
|
|
|
547 |
|
|
|
488 |
|
Non-GAAP gross
profit |
|
|
62,371 |
|
|
|
77,498 |
|
|
|
190,067 |
|
|
|
270,186 |
|
Pre-2011 Revenue |
|
|
142 |
|
|
|
5,368 |
|
|
|
907 |
|
|
|
22,504 |
|
Elim PCS |
|
|
- |
|
|
|
12,000 |
|
|
|
1,700 |
|
|
|
44,800 |
|
Non-GAAP gross
profit w/o Pre-2011 and Elim |
|
|
62,229 |
|
|
|
60,130 |
|
|
|
187,460 |
|
|
|
202,882 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating expenses |
|
|
|
|
|
|
|
|
GAAP operating
expenses |
|
|
56,650 |
|
|
|
66,887 |
|
|
|
183,205 |
|
|
|
210,190 |
|
Less Amortization of
intangible assets |
|
|
(362 |
) |
|
|
(567 |
) |
|
|
(1,088 |
) |
|
|
(2,135 |
) |
Less Stock-based
compensation |
|
|
(2,418 |
) |
|
|
(1,571 |
) |
|
|
(5,327 |
) |
|
|
(5,628 |
) |
Less Restructuring
costs, net |
|
|
582 |
|
|
|
(5,314 |
) |
|
|
(6,464 |
) |
|
|
(7,878 |
) |
Less Restatement
costs |
|
|
(284 |
) |
|
|
(38 |
) |
|
|
(726 |
) |
|
|
(186 |
) |
Less Acquisition,
integration and other costs |
|
|
244 |
|
|
|
336 |
|
|
|
104 |
|
|
|
(458 |
) |
Less Efficiency program
costs |
|
|
(483 |
) |
|
|
(1,338 |
) |
|
|
(3,054 |
) |
|
|
(3,338 |
) |
Non-GAAP
operating expenses |
|
|
53,929 |
|
|
|
58,395 |
|
|
|
166,650 |
|
|
|
190,567 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating income |
|
|
|
|
|
|
|
|
GAAP operating
(loss) income |
|
|
3,708 |
|
|
|
8,504 |
|
|
|
465 |
|
|
|
53,064 |
|
Amortization of
acquired deferred revenue |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
594 |
|
Amortization of
intangible assets |
|
|
2,312 |
|
|
|
2,517 |
|
|
|
6,938 |
|
|
|
7,985 |
|
Stock-based
compensation |
|
|
2,481 |
|
|
|
1,728 |
|
|
|
5,874 |
|
|
|
6,116 |
|
Restructuring costs,
net |
|
|
(582 |
) |
|
|
5,314 |
|
|
|
6,464 |
|
|
|
7,878 |
|
Restatement costs |
|
|
284 |
|
|
|
38 |
|
|
|
726 |
|
|
|
186 |
|
Acquisition,
integration and other costs |
|
|
(244 |
) |
|
|
(336 |
) |
|
|
(104 |
) |
|
|
458 |
|
Efficiency program
costs |
|
|
483 |
|
|
|
1,338 |
|
|
|
3,054 |
|
|
|
3,338 |
|
Non-GAAP
operating income |
|
|
8,442 |
|
|
|
19,103 |
|
|
|
23,417 |
|
|
|
79,619 |
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Non-GAAP
operating income (from above) |
|
|
8,442 |
|
|
|
19,103 |
|
|
|
23,417 |
|
|
|
79,619 |
|
Depreciation |
|
|
3,088 |
|
|
|
3,762 |
|
|
|
9,994 |
|
|
|
11,184 |
|
Adjusted
EBITDA |
|
|
11,530 |
|
|
|
22,865 |
|
|
|
33,411 |
|
|
|
90,803 |
|
Adjusted EBITDA
margin |
|
|
11 |
% |
|
|
19 |
% |
|
|
11 |
% |
|
|
23 |
% |
Pre-2011 Revenue |
|
|
142 |
|
|
|
5,368 |
|
|
|
907 |
|
|
|
22,504 |
|
Elim PCS |
|
|
- |
|
|
|
12,000 |
|
|
|
1,700 |
|
|
|
44,800 |
|
Adjusted EBITDA
w/o Pre-2011 and Elim |
|
|
11,388 |
|
|
|
5,497 |
|
|
|
30,804 |
|
|
|
23,499 |
|
|
|
|
|
|
|
|
|
|
Adjusted free
cash flow |
|
|
|
|
|
|
|
|
GAAP net cash provided by (used in) operating
activities |
|
31 |
|
|
|
(3,909 |
) |
|
|
6,103 |
|
|
|
(48,925 |
) |
Capital
expenditures |
|
|
(3,017 |
) |
|
|
(2,360 |
) |
|
|
(6,125 |
) |
|
|
(9,681 |
) |
Free Cash
Flow |
|
|
(2,986 |
) |
|
|
(6,269 |
) |
|
|
(22 |
) |
|
|
(58,606 |
) |
|
|
|
|
|
|
|
|
|
Non-Operational
/ One-time Items |
|
|
|
|
|
|
|
|
Restructuring
payments |
|
|
2,546 |
|
|
|
1,496 |
|
|
|
9,540 |
|
|
|
8,981 |
|
Restatement
payments |
|
|
169 |
|
|
|
- |
|
|
|
379 |
|
|
|
- |
|
Acquisition,
integration and other payments |
|
|
174 |
|
|
|
196 |
|
|
|
193 |
|
|
|
1,817 |
|
Efficiency program
payments |
|
|
634 |
|
|
|
1,947 |
|
|
|
3,363 |
|
|
|
5,530 |
|
Sub-Total
Non-Operational / One-Time Items |
|
|
3,523 |
|
|
|
3,639 |
|
|
|
13,475 |
|
|
|
16,328 |
|
|
|
|
|
|
|
|
|
|
Adjusted free
cash flow |
|
$ |
537 |
|
|
$ |
(2,630 |
) |
|
$ |
13,453 |
|
|
$ |
(42,278 |
) |
Adjusted free
cash flow conversion of adjusted EBITDA |
|
|
5 |
% |
|
|
-12 |
% |
|
|
40 |
% |
|
|
-47 |
% |
|
|
|
|
|
|
|
|
|
These
non-GAAP measures reflect how Avid manages its businesses
internally. Avid’s non-GAAP measures may vary from how
other companies present non-GAAP measures. 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. |
|
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
|
|
|
|
Condensed
Consolidated Balance Sheets |
|
|
|
|
(unaudited - in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
2017 |
|
|
|
2016 |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash
equivalents |
|
$ |
44,094 |
|
|
$ |
44,948 |
|
Accounts receivable, net of allowances of $10,494 and
$8,618 |
|
|
|
|
at September 30, 2017 and December 31, 2016,
respectively |
|
|
40,864 |
|
|
|
43,520 |
|
Inventories |
|
|
41,160 |
|
|
|
50,701 |
|
Prepaid
expenses |
|
|
8,537 |
|
|
|
6,031 |
|
Other current
assets |
|
|
9,925 |
|
|
|
5,805 |
|
Total current assets |
|
|
144,580 |
|
|
|
151,005 |
|
|
|
|
|
|
Property and
equipment, net |
|
|
23,273 |
|
|
|
30,146 |
|
Intangible
assets, net |
|
|
15,995 |
|
|
|
22,932 |
|
Goodwill |
|
|
32,643 |
|
|
|
32,643 |
|
Long-term
deferred tax assets, net |
|
|
1,355 |
|
|
|
1,245 |
|
Other long-term
assets |
|
|
7,404 |
|
|
|
11,610 |
|
Total assets |
|
$ |
225,250 |
|
|
$ |
249,581 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
28,620 |
|
|
$ |
26,435 |
|
Accrued
compensation and benefits |
|
|
32,734 |
|
|
|
25,387 |
|
Accrued expenses
and other current liabilities |
|
|
32,848 |
|
|
|
34,088 |
|
Income taxes
payable |
|
|
806 |
|
|
|
1,012 |
|
Short-term
debt |
|
|
5,072 |
|
|
|
5,000 |
|
Deferred
revenues |
|
|
122,475 |
|
|
|
146,014 |
|
Total current liabilities |
|
|
222,555 |
|
|
|
237,936 |
|
|
|
|
|
|
Long-term
debt |
|
|
191,300 |
|
|
|
188,795 |
|
Long-term
deferred tax liabilities, net |
|
|
- |
|
|
|
913 |
|
Long-term
deferred revenues |
|
|
72,091 |
|
|
|
79,670 |
|
Other long-term
liabilities |
|
|
9,726 |
|
|
|
12,178 |
|
Total liabilities |
|
|
495,672 |
|
|
|
519,492 |
|
|
|
|
|
|
Stockholders'
deficit: |
|
|
|
|
Common
stock |
|
|
423 |
|
|
|
423 |
|
Additional
paid-in capital |
|
|
1,038,308 |
|
|
|
1,043,063 |
|
Accumulated
deficit |
|
|
(1,283,822 |
) |
|
|
(1,271,148 |
) |
Treasury stock
at cost |
|
|
(22,238 |
) |
|
|
(32,353 |
) |
Accumulated
other comprehensive loss |
|
|
(3,093 |
) |
|
|
(9,896 |
) |
Total stockholders' deficit |
|
|
(270,422 |
) |
|
|
(269,911 |
) |
Total liabilities and stockholders' deficit |
|
$ |
225,250 |
|
|
$ |
249,581 |
|
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
Condensed Consolidated Statements of Cash
Flows |
|
|
|
(unaudited
- in thousands) |
|
|
|
|
|
|
|
|
Nine Months Ended |
|
September 30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
Net (loss)
income |
$ |
(12,674 |
) |
|
$ |
42,998 |
|
|
Adjustments
to reconcile net (loss) income to net cash provided by (used in)
operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
16,932 |
|
|
|
19,169 |
|
|
|
(Recovery)
provision for doubtful accounts |
|
(158 |
) |
|
|
890 |
|
|
|
Stock-based
compensation expense |
|
5,874 |
|
|
|
6,116 |
|
|
|
Non-cash
provision for restructuring |
|
3,191 |
|
|
|
1,137 |
|
|
|
Non-cash
interest expense |
|
7,255 |
|
|
|
7,935 |
|
|
|
Unrealized
foreign currency transaction losses |
|
6,885 |
|
|
|
2,021 |
|
|
|
Benefit
from deferred taxes |
|
(925 |
) |
|
|
(5,187 |
) |
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable |
|
2,877 |
|
|
|
17,057 |
|
|
|
|
Inventories |
|
9,542 |
|
|
|
(7,561 |
) |
|
|
|
Prepaid
expenses and other assets |
|
(3,958 |
) |
|
|
(1,493 |
) |
|
|
|
Accounts
payable |
|
2,065 |
|
|
|
(19,627 |
) |
|
|
|
Accrued
expenses, compensation and benefits and other liabilities |
|
543 |
|
|
|
(4,384 |
) |
|
|
|
Income
taxes payable |
|
(161 |
) |
|
|
347 |
|
|
|
|
Deferred
revenues |
|
(31,185 |
) |
|
|
(108,343 |
) |
Net
cash provided by (used in) operating activities |
|
6,103 |
|
|
|
(48,925 |
) |
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
Purchases
of property and equipment |
|
(6,125 |
) |
|
|
(9,681 |
) |
|
Increase in
other long-term assets |
|
(24 |
) |
|
|
(17 |
) |
|
Decrease
(Increase) in restricted cash |
|
1,790 |
|
|
|
(4,544 |
) |
Net
cash used in investing activities |
|
(4,359 |
) |
|
|
(14,242 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
Proceeds
from long-term debt |
|
912 |
|
|
|
100,000 |
|
|
Repayment
of debt |
|
(3,750 |
) |
|
|
(2,500 |
) |
|
Proceeds
from the issuance of common stock under employee stock plans |
|
219 |
|
|
|
5,914 |
|
|
Common
stock repurchases for tax withholdings for net settlement of equity
awards |
|
(732 |
) |
|
|
(803 |
) |
|
Proceeds
from revolving credit facilities |
|
- |
|
|
|
25,000 |
|
|
Payments on
revolving credit facilities |
|
- |
|
|
|
(30,000 |
) |
|
Payments
for credit facility issuance costs |
|
- |
|
|
|
(5,020 |
) |
Net
cash (used in) provided by financing activities |
|
(3,351 |
) |
|
|
92,591 |
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
753 |
|
|
|
391 |
|
Net
(decrease) increase in cash and cash equivalents |
|
(854 |
) |
|
|
29,815 |
|
Cash and
cash equivalents at beginning of the period |
|
44,948 |
|
|
|
17,902 |
|
Cash and
cash equivalents at end of the period |
$ |
44,094 |
|
|
$ |
47,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
|
|
|
|
|
|
Supplemental Revenue Information |
|
|
|
|
|
|
|
|
|
(unaudited
- in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
|
|
|
Revenue
Backlog* |
2017 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-2011 |
$ |
190 |
|
$ |
331 |
|
$ |
3,364 |
|
|
|
|
|
Post-2010 |
$ |
194,376 |
|
$ |
203,708 |
|
$ |
236,644 |
|
|
|
|
|
Deferred Revenue |
$ |
194,566 |
|
$ |
204,039 |
|
$ |
240,008 |
|
|
|
|
|
Other Backlog |
$ |
293,387 |
|
$ |
283,765 |
|
$ |
197,153 |
|
|
|
|
|
Total Revenue
Backlog |
$ |
487,953 |
|
$ |
487,804 |
|
$ |
437,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
expected timing of recognition of revenue backlog as of September
30, 2017 is as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
2018 |
|
|
2019 |
|
Thereafter |
|
Total |
|
Orders executed prior
to January 1, 2011 |
$ |
78 |
|
$ |
112 |
|
$ |
- |
|
$ |
- |
|
$ |
190 |
|
Orders executed or
materially modified on or |
$ |
39,191 |
|
$ |
68,016 |
|
$ |
30,872 |
|
$ |
56,297 |
|
$ |
194,376 |
|
after
January 1, 2011 |
|
|
|
|
|
|
|
|
|
|
Other Backlog |
$ |
46,470 |
|
$ |
118,321 |
|
$ |
62,329 |
|
$ |
66,267 |
|
$ |
293,387 |
|
Total Revenue
Backlog |
$ |
85,739 |
|
$ |
186,449 |
|
$ |
93,201 |
|
$ |
122,564 |
|
$ |
487,953 |
|
|
|
|
|
|
|
|
|
|
|
|
*A
definition of Revenue Backlog is included in the supplemental
financial and operational data sheet available on our investor
relations webpage at ir.avid.com. |
|
Note:
current estimates could change based on a number of factors,
including (i) the timing of delivery of products and services, (ii)
customer cancellations or change order, |
|
(iii)
changes in the estimated period of time Implied Maintenance Release
PCS is provided to customers, including as a result of changes in
business practices. |
|
|
|
|
|
|
|
|
|
|
|
Investor Contact:Dean
RidlonAviddean.ridlon@avid.com (978) 640-3379
PR Contact:Jim SheehanAvid jim.sheehan@avid.com
(978) 640-3152
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