---In Avid-L2@yahoogroups.com, <switthaus@...> wrote:
Here's a related one: Avid's biggest challenge? Balancing it's own books. I can't wait to see how that plays out. Man, old Gary G. got the hell out of Dodge in time, didn't he? ;-)
I think this issue goes deeper than any of us realize. Has anyone reading this post read this press release? Avid Makes New VP Appointments, Hires New Audit Firm
"Avid's cash balance at the end of 2013 was approximately $48 million, with no debt, the company said. Cash expenditures related to the accounting evaluation in 2014 will amount to between $25 million and $34 million, Avid said."
$48 million in cash on hand minus the $34 million (top end) to solve the accounting debacle leaves $14 million in the bank. This is not good.
Gary G got out Dodge because of the accounting debacle. One year ago this coming Tuesday (2/11), Greenfield resigned as CEO. Avid Names Louis Hernandez CEO, Replacing Gary Greenfield, Will Finish Out His Term on Board of Directors.
This was exactly 2 weeks before Avid Postponed its Q4 2012 Earnings Release.
Greenfield's term on the board of directors ended on May 20, 2013.
In February 2013 (maybe the same day as Greenfield resigning?), John Frederick became Chief of Staff. On April 22, 2013, he became EVP, CFO, and CAO. Ken Sexton, the man Frederick replaced, was the CFO while Greenfield was CEO.
I see red flags here. The CEO (Greenfield) resigns that position, then an accounting debacle comes to light, then the CFO (Sexton) under the previous CEO resigns, then a month later the former CEO gives up his seat on the board.
Meanwhile, Frederick had worked with Hernandez, who worked with Greenfield, at Open Solutions.
Avid fired its accounting/auditing firm last month.
Avid is slated to be delisted from the NASDAQ on the Ides of March.
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