Avid Reports Second Quarter 2007 Results
& Appoints Joel Legon as CFO
July 27, 2007
Source: Avid
Avid Technology,
Inc. (NASDAQ:AVID) today reported revenue of $225.3 million
for the three-month period ended June 30, 2007, compared to
$222.2 million for the same period in 2006. GAAP net loss
for the quarter was $6.0 million, or $.15 per share, compared
to GAAP net income of $2.7 million, or $.06 per diluted share,
in the second quarter of 2006.
GAAP net income in the second quarter of
2007 includes $14.2 million of amortization, stock-based compensation,
restructuring charges, legal settlements and related tax adjustments.
Excluding these items, non-GAAP earnings per diluted share
were $.20. For the second quarter of 2006, there was $11.8
million of amortization, stock-based compensation and related
tax adjustments included in GAAP net income. Excluding these
items, non-GAAP earnings per share were $.34 in the second
quarter of 2006.
Avid also announced the appointment of Joel
Legon to serve as the company's vice president and chief financial
officer. Since joining Avid in March 2006, Legon had served
as vice president and corporate controller. He had additionally
served as acting chief financial officer since March 2007.
"I am pleased to report a solid Q2,
with revenue and profit that were in line with our expectations,"
said David Krall, who will be stepping down as president and
chief executive officer on July 31. "Our Video division
recognized several large deals out of backlog, including France
24, one of the largest orders in our history. In
Audio, which is our most consistent and profitable segment,
revenue was flat organically and up 3% year-on-year including
revenue generated from Sibelius. In our Consumer segment,
lower sales of the TV viewing line in Europe were counterbalanced
by strong sales and
market share growth of our flagship Studio 11 consumer video
editor."
"With a strong balance sheet, innovative
products and world-class customers, Avid is well positioned
as a leader in the media and entertainment industry,"
said Nancy Hawthorne, who will take over as interim chief
executive officer on August 1. "Our customers are looking
to Avid to extend that leadership into new areas as their
businesses evolve. By aligning ourselves more closely with
our customers' business opportunities, and taking a fresh
approach to our own business processes, we believe we can
deliver more value to both our customers and our shareholders."
The company also announced a strategic realignment
that will result in restructuring charges of between $8 and
$10 million, $1.5 million of which was recorded in Q2. This
action includes the transition of video server engineering
from Mountain View, CA to existing Avid facilities in Edmonton,
Canada and Tewksbury, MA; a reduction in space within certain
facilities; and a reduction in force of approximately 150
positions, primarily, but not exclusively, in the company's
Video business unit.
Revenue for the six-month period ended June
30, 2007 was $444.2 million, compared to revenue of $440.3
million for the same period in 2006. GAAP net loss for the
first six months of 2007 was $6 million,or $.15 per share,
compared to GAAP net income of $6.0 million, or $.14 per diluted
share, for the same period in 2006. GAAP net loss for the
six-month period ended June 30, 2007 includes $24.8 million
of amortization, stock-based compensation, restructuring charges,
legal settlements and related tax adjustments. Excluding these
items, non-GAAP earnings per share were $.45 per diluted share
for the first half of 2007. GAAP net income for the six-month
period ended June 30, 2006 includes $24.6 million of amortization,
stock-based compensation, restructuring charges, in-process
research and development and related tax adjustments. Excluding
these items non-GAAP earnings per share were $.71 for the
first half of 2006.
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