Avid Profits Fall, But Progress Made

A worldwide leader in tools for film, video, audio, 3D animation, gaming and broadcast professionals – as well as for home audio and video enthusiasts, Avid Technology has just reported revenue of $217.1 million for the three-month period ended September 30, 2008, compared to $226.8 million for the same period in 2007.
GAAP net loss for the quarter was $66.4 million, or $1.80 per share, compared to GAAP net loss of $5.9 million, or $.14 per share, in the third quarter of 2007.
GAAP net loss in the third quarter of 2008 included goodwill and intangible asset impairment charges associated with the 2005 Pinnacle acquisition, amortisation, stock-based compensation, restructuring charges and related tax adjustments totaling $62.0 million.
Excluding these items, non-GAAP loss per share was $.12. For the third quarter of 2007, GAAP net loss included $21.0 million of amortisation, stock-based compensation, restructuring charges, other costs and related tax adjustments. Excluding these items, non-GAAP earnings per diluted share were $.37 in the third quarter of 2007.
As part of the company's business transformation efforts, Avid also announced today plans to divest the Softimage 3D animation product line.
In addition, the company announced a reduction in workforce to better align its cost structure around the core businesses.
"We've made solid progress in transforming Avid, by organizing around our customers, delivering solutions that will help our customers succeed, and taking necessary steps to align our cost structure to support our core product lines," said Gary Greenfield, Avid's Chairman.
"We are pleased with our progress and plan to leverage Avid's collective audio and video strengths, from the consumer to the enterprise, in ways that will deliver sustainable value to customers and prospects."
At September 30, 2008, the company's cash balance was $122.4 million, down $102.0 million since the end of 2007.
During the first quarter of 2008, the company used $93.2 million in cash to repurchase 4.3 million shares of common stock under the previously-announced share buyback program.
(BMcC)