"… Hence the mass layoffs …"
http://www.sonicscoop.com/2011/10/27/avid-announces-restructuring-lays-off-1
0-of-workforce/
"… The cuts were across "all areas of the business", excluding sales and
marketing positions …"
Hmmm……
Randy
**********************************
Randall L. Rike, ACI, ACSR Mac*Win*Unity*DS
(818) 406-8480 Mobile
IndyPix4U@PortablePost.com
From: Terence Curren <tcurren@aol.com>
Reply-To: Avid-L2 <Avid-L2@yahoogroups.com>
Date: Fri, 28 Oct 2011 18:36:04 -0000
To: Avid-L2 <Avid-L2@yahoogroups.com>
Subject: [Avid-L2] Re: [pr] Avid reports 3rd quarter earnings
Hence the mass layoffs.
--- In Avid-L2@yahoogroups.com <mailto:Avid-L2%40yahoogroups.com> ,
"jeffsengpiehl" <jeffsengpiehl@...> wrote:
>
>
> BURLINGTON, Mass.--(BUSINESS WIRE)-- Avid® (NASDAQ: AVID) today reported
revenues of $165.0 million for the three-month period ended September 30, 2011,
compared to $165.1 million for the same period in 2010. The GAAP net loss for
the third quarter was $8.0 million, or $0.21 per share, compared to a GAAP net
loss of $10.0 million, or $0.26 per share, in the third quarter of 2010. The
revenue reported for the second quarter of 2011 was $161.3 million and the GAAP
net loss was $11.9 million.
>
> The GAAP net loss for the third quarter of 2011 and 2010 included amortization
of intangible assets, stock-based compensation, gain on asset sales, legal
settlements and acquisition-related costs, restructuring charges, and related
tax adjustments collectively totaling $8.4 million and $11.6 million,
respectively. Excluding these items, the non-GAAP net income for the third
quarter of 2011 was $385 thousand, or $0.01 per share, compared to non-GAAP net
income of $1.6 million, or $0.04 per share, for the third quarter of 2010.
>
> "The third quarter results showed sequential improvement in revenue and
profit," said Gary Greenfield, chairman and CEO of Avid. "We continue our sharp
focus on providing our customers with the products and solutions that help them
succeed. In addition, we have taken actions which should accelerate improvement
in our financial performance."
>
> Revenues for the nine-month period ended September 30, 2011 were $492.6
million, compared to revenues of $483.2 million for the same period in 2010. The
GAAP net loss for the first nine months of 2011 was $25.0 million, or $0.65 per
share, compared to a GAAP net loss of $36.4 million, or $0.96 per share, for the
same period in 2010. The GAAP net loss for the nine-month period ended September
30, 2011 included $20.6 million of amortization of intangible assets,
stock-based compensation, restructuring charges, loss on asset sales, legal
settlements and acquisition-related costs and related tax adjustments. Excluding
these items, the non-GAAP net loss was $4.4 million, or $0.11 per share, for the
first nine months of 2011. The GAAP net loss for the nine-month period ended
September 30, 2010 included $31.4 million of amortization of intangible assets,
gain on asset sales, stock-based compensation, restructuring charges, legal
settlements and acquisition-related costs and related tax adjustments. Excluding
these items, the non-GAAP net loss was $5.0 million, or $0.13 per share, for the
first nine months of 2010.
>
> A reconciliation of GAAP to non-GAAP results is included in the tables
attached to this release.
>
> Conference Call
>
> A conference call to discuss Avid's third quarter 2011 financial results will
be held today, October 27, 2011 at 4:30 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 listen 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 that we provide 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, the terms used in this press release,
such as non-GAAP net loss and non-GAAP net income, 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 contents of this release are subject to the completion and filing of our
Quarterly Report on Form 10-Q. This release includes 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: Avid's ability to execute on its corporate strategy and meet customer
needs, including the ability to produce innovative products in response to
changing market demand; competitive factors; fluctuations in Avid's revenues,
based on, among other things, Avid's performance in particular geographies;
general economic conditions and conditions within the rapidly evolving media
industry specifically; 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,
live concert tours and news broadcasts, to music and movies made at home. Some
of Avid's most influential and pioneering solutions include Media Composer®, Pro
Tools, Interplay®, ISIS®, VENUE, Sibelius®, System 5, and Avid® Studio. 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.
>
> © 2011 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, M-Audio, Media
Composer, Pro Tools, Interplay, ISIS, Sibelius, and Avid Studio 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 Nine Months Ended
> September 30, September 30,
> 2011 2010 2011 2010
> Net revenues:
> Products $ 131,875 $ 134,231 $ 398,400 $ 397,044
> Services 33,090 30,828 94,232 86,131
> Total net revenues 164,965 165,059 492,632 483,175
>
> Cost of revenues:
> Products 60,048 64,421 187,663 193,527
> Services 16,497 14,194 46,196 41,373
> Amortization of intangible assets 685 745 2,036 2,657
> Total cost of revenues 77,230 79,360 235,895 237,557
>
> Gross profit 87,735 85,699 256,737 245,618
>
> Operating expenses:
> Research and development 28,960 28,929 89,386 89,348
> Marketing and selling 45,411 43,199 136,273 129,419
> General and administrative 13,240 19,698 43,458 48,179
> Amortization of intangible assets 2,159 2,283 6,465 7,557
> Restructuring and other costs, net 2,707 185 328 5,532
> (Gain) loss on sales of assets - (1,527 ) 597 (1,527 )
> Total operating expenses 92,477 92,767 276,507 278,508
>
> Operating loss (4,742 ) (7,068 ) (19,770 ) (32,890 )
>
> Interest and other income (expense), net (503 ) (30 ) (1,571 )
(132 )
> Loss before income taxes (5,245 ) (7,098 ) (21,341 ) (33,022 )
>
> Provision for income taxes, net 2,774 2,897 3,657 3,361
>
> Net loss ($8,019 ) ($9,995 ) ($24,998 ) ($36,383 )
>
> Net loss per common share - basic and diluted ($0.21 ) ($0.26 )
($0.65 ) ($0.96 )
>
> Weighted-average common shares outstanding - basic and diluted 38,511 38,045
38,386 37,826
> AVID TECHNOLOGY, INC.
> (unaudited - in thousands, except per share data)
>
> Reconciliations of GAAP financial measures to Non-GAAP financial measures:
>
> Three Months Ended September 30, 2011
>
> Gross Operating Operating Tax Net
> Profit Expenses (Loss) Income Provision (Loss) Income
> GAAP $ 87,735 $ 92,477 ($4,742 ) $ 2,774 ($8,019 )
>
> Amortization of intangible assets 685 (2,159 ) 2,844 2,844
> Restructuring costs, net (2,707 ) 2,707 2,707
> Legal settlement and acquisition-related costs (a) (163 ) 163 163
> Tax adjustment 815 (815 )
> Stock-based compensation included in:
> Cost of products revenues 168 168 168
> Cost of services revenues 63 63 63
> Research and development expenses (435 ) 435 435
> Marketing and selling expenses (1,051 ) 1,051 1,051
> General and administrative expenses (1,788 ) 1,788 1,788
> Non-GAAP $ 88,651 $ 84,174 $ 4,477 $ 3,589 $ 385
>
> Weighted-average shares outstanding - diluted 38,530
>
> Non-GAAP net income per share - diluted $ 0.01
>
> Three Months Ended September 30, 2010
>
> Gross Operating Operating Tax Net
> Profit Expenses (Loss) Income Provision (Loss) Income
> GAAP $ 85,699 $ 92,767 ($7,068 ) $ 2,897 ($9,995 )
>
> Amortization of intangible assets 745 (2,283 ) 3,028 3,028
> Restructuring and other costs, net (185 ) 185 185
> Legal settlement and acquisition-related costs (a) (5,656 ) 5,656 5,656
> Gain on sales of assets 527 (527 ) (527 )
> Tax adjustment 399 (399 )
> Stock-based compensation included in:
> Cost of products revenues 176 176 176
> Cost of services revenues 287 287 287
> Research and development expenses (506 ) 506 506
> Marketing and selling expenses (1,078 ) 1,078 1,078
> General and administrative expenses (1,581 ) 1,581 1,581
> Non-GAAP $ 86,907 $ 82,005 $ 4,902 $ 3,296 $ 1,576
>
> Weighted-average shares outstanding - diluted 38,065
>
> Non-GAAP net income per share - diluted
> $ 0.04
>
> (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:
>
> Nine Months Ended September 30, 2011
>
> Gross Operating Operating Tax Net
> Profit Expenses (Loss) Income Provision Loss
> GAAP $ 256,737 $ 276,507 ($19,770 ) $ 3,657 ($24,998 )
>
> Amortization of intangible assets 2,036 (6,465 ) 8,501 8,501
> Restructuring costs, net (328 ) 328 328
> Legal settlements and acquisition-related costs (a) (555 ) 555 555
> Loss on sales of assets (597 ) 597 597
> Tax adjustment 1,115 (1,115 )
> Stock-based compensation included in:
> Cost of products revenues 417 417 417
> Cost of services revenues 608 608 608
> Research and development expenses (1,334 ) 1,334 1,334
> Marketing and selling expenses (3,625 ) 3,625 3,625
> General and administrative expenses (5,783 ) 5,783 5,783
> Non-GAAP $ 259,798 $ 257,820 $ 1,978 $ 4,772 ($4,365 )
>
> Weighted-average shares outstanding - diluted 38,386
>
> Non-GAAP net loss per share - diluted
> ($0.11 )
>
> Nine Months Ended September 30, 2010
>
> Gross Operating Operating Tax Net
> Profit Expenses Loss Provision Loss
> GAAP $ 245,618 $ 278,508 ($32,890 ) $ 3,361 ($36,383 )
>
> Amortization of intangible assets 2,657 (7,557 ) 10,214 10,214
> Restructuring and other costs, net (b) (5,532 ) 5,532 5,532
> Legal settlement and acquisition-related costs (a) (6,425 ) 6,425 6,425
> Gain on sales of assets 527 (527 ) (527 )
> Tax adjustment 854 (854 )
> Stock-based compensation included in:
> Cost of products revenues 562 562 562
> Cost of services revenues 822 822 822
> Research and development expenses (1,704 ) 1,704 1,704
> Marketing and selling expenses (3,153 ) 3,153 3,153
> General and administrative expenses (4,373 ) 4,373 4,373
> Non-GAAP $ 249,659 $ 250,291 ($632 ) $ 4,215 ($4,979 )
>
> Weighted-average shares outstanding - diluted 37,826
>
> Non-GAAP net loss per share - diluted ($0.13 )
>
> (a) Represents costs included in general and administrative expenses
> (b) Includes costs of $3.7 million related to exiting our former Tewksbury,
Massachusetts headquarters lease
>
> Revenue Summary:
> Three Months Ended Nine Months Ended
> September 30, September 30,
> 2011 2010 2011 2010
> Video revenues $ 98,443 $ 100,186 $ 289,325 $ 278,060
> Audio revenues 66,522 64,873 203,307 205,115
> Total net revenues $ 164,965 $ 165,059 $ 492,632 $ 483,175
> AVID TECHNOLOGY, INC.
> Condensed Consolidated Balance Sheets
> (unaudited - in thousands)
>
> September 30, December 31,
> 2011 2010
> ASSETS:
> Current assets:
> Cash and cash equivalents $ 33,652 $ 42,782
> Accounts receivable, net of allowances of $13,277 and $17,149
> at September 30, 2011 and December 31, 2010, respectively 92,904 101,171
> Inventories 126,029 108,357
> Deferred tax assets, net 1,081 1,068
> Prepaid expenses 6,598 7,688
> Other current assets 15,065 16,130
> Total current assets 275,329 277,196
>
> Property and equipment, net 57,063 62,519
> Intangible assets, net 21,327 29,750
> Goodwill 246,658 246,997
> Other assets 10,788 10,109
>
> Total assets $ 611,165 $ 626,571
>
> LIABILITIES AND STOCKHOLDERS' EQUITY:
> Current liabilities:
> Borrowings under revolving credit facilities $ 13,000 $ 0
> Accounts payable 35,090 47,340
> Accrued compensation and benefits 28,551 41,101
> Accrued expenses and other current liabilities 32,200 40,986
> Income taxes payable 4,570 4,640
> Deferred revenues 52,752 40,585
> Total current liabilities 166,163 174,652
>
> Long-term liabilities 30,060 25,309
> Total liabilities 196,223 199,961
>
> Stockholders' equity:
> Common stock 423 423
> Additional paid-in capital 1,015,770 1,005,198
> Accumulated deficit (524,717 ) (495,254 )
> Treasury stock at cost, net of reissuances (83,612 ) (91,025 )
> Accumulated other comprehensive income 7,078 7,268
> Total stockholders' equity 414,942 426,610
>
> Total liabilities and stockholders' equity $ 611,165 $ 626,571
> AVID TECHNOLOGY, INC.
> Condensed Consolidated Statements of Cash Flows
> (unaudited - in thousands)
>
> Three Months Ended Nine Months Ended
> September 30, September 30,
> 2011 2010 2011 2010
> Cash flows from operating activities:
> Net loss ($8,019 ) ($9,995 ) ($24,998 ) ($36,383 )
> Adjustments to reconcile net loss to net cash used in operating activities:
> Depreciation and amortization 7,817 8,529 23,538 25,026
> Provision for doubtful accounts 75 295 534 285
> Non-cash provision for restructuring 133 42 258 291
> (Gain) loss on sales of assets - (1,527 ) 597 (1,527 )
> Gain on disposal of fixed assets (4 ) (24 ) (10 ) (70 )
> Compensation expense from stock grants and options 3,505 3,628 11,767
10,614
> Non-cash interest expense 74 - 228 -
> Unrealized foreign currency transaction (gains) losses (2,502 ) 5,501
3,988 253
> Changes in deferred tax assets and liabilities, excluding initial effects of
acquisitions - (1,143 ) (4 ) (1,393 )
> Changes in operating assets and liabilities, excluding initial effects of
acquisitions:
> Accounts receivable 5,346 10,319 7,574 (7,202 )
> Inventories 3,767 (17,088 ) (17,671 ) (15,344 )
> Prepaid expenses and other current assets 489 1,763 778 7,032
> Accounts payable (9,637 ) (7,088 ) (12,262 ) 13,832
> Accrued expenses, compensation and benefits, and other liabilities (7,883 )
(6,539 ) (24,129 ) (25,021 )
> Income taxes payable 1,822 3,257 (209 ) 2,290
> Deferred revenues 4,649 (1,583 ) 16,464 6,763
> Net cash used in operating activities (368 ) (11,653 ) (13,557 )
(20,554 )
>
> Cash flows from investing activities:
> Purchases of property and equipment (2,784 ) (3,417 ) (8,862 ) (25,926
)
> Decrease (increase) in other long-term assets 102 (149 ) (969 ) (82 )
> Payments for business acquisitions, net of cash acquired - - - (27,008 )
> Purchases of marketable securities - - - (2,250 )
> Proceeds from sales of marketable securities - - - 19,605
> Proceeds from sales of assets - 1,000 - 1,000
> Net cash used in investing activities (2,682 ) (2,566 ) (9,831 )
(34,661 )
>
> Cash flows from financing activities:
> Proceeds from (payments related to) the issuance of common stock under
employee stock plans, net 404 261 1,753 (61 )
> Proceeds from revolving credit facilities - - 21,000 -
> Payments on revolving credit facilities - - (8,000 ) -
> Net cash provided by (used in) financing activities 404 261
14,753 (61 )
>
> Effect of exchange rate changes on cash and cash equivalents (1,259 )
1,526 (495 ) (1,880 )
> Net decrease in cash and cash equivalents (3,905 ) (12,432 ) (9,130 )
(57,156 )
> Cash and cash equivalents at beginning of period 37,557 46,793
42,782 91,517
> Cash and cash equivalents at end of period $ 33,652 $ 34,361 $
33,652 $ 34,361
>
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