Earnings are out:
biz.yahoo.com
Thursday July 22, 3:59 pm Eastern Time
Company Press Release
Avid Technology Announces Results for the Second Quarter 1999
TEWKSBURY, Mass.--(BUSINESS WIRE)--July 22, 1999--Avid Technology, Inc. (NASDAQ:AVID - news) today reported its financial results for the second quarter ended June 30, 1999. Revenues rose to $116.4 million compared to $112.9 million in the second quarter 1998. For the second quarter of 1999, the Company recorded a net loss of $8.0 million, or $0.34 per share, which includes amortization of acquisition-related intangible assets resulting from the 1998 acquisition of Softimage Inc. Excluding the acquisition-related amortization, the Company recorded tax-effected income of $2.7 million, or $0.10 per diluted share, compared with net income of $9.2 million, or $0.37 per diluted share, in the same quarter a year earlier.
For the six-month period ended June 30, 1999, revenues were $227.6 million versus $221.6 million in the same period in 1998. For the six-month period ended June 30, 1999, the Company recorded a net loss of $19.5 million, or $0.81 per share. Excluding acquisition-related amortization, net income was $5.4 million, or $0.20 per diluted share,
compared to $16.9 million, or $0.69 per diluted share, for the same six-month period in 1998.
William J. Miller, Avid's Chairman and CEO, commented, ''Revenues for the quarter reflected modest sequential and year over year growth, despite a difficult industry environment. Sales of Symphony(TM), Softimage® DS, and Avid Xpress(TM) products, as well as Media Composer® upgrades, showed improvement from first quarter 1999 levels, but this growth was partly offset by continued sluggishness in Media Composer system and broadcast products sales as well as weaker currencies in Europe and Japan. Additionally, Digidesign revenues improved significantly versus prior year, but were below their record first quarter 1999 level.''
''Gross margin for the second quarter was 56.8% versus 60.1% in the first quarter of 1999,'' Miller continued. ''The sequential decline in gross margin reflects increased sales of NT-based Media Composer and Avid Xpress products, which are generally shipped as fully configured systems and carry lower margins. We were more aggressive with our
pricing during the quarter, particularly with the Avid Xpress price reductions announced in June. The second quarter margin also reflected increased sales of upgrades which carry lower margins, as well as the adverse foreign currency impact.''
''On balance, we were very pleased to see increased demand for our high-end Symphony and Softimage DS finishing solutions,'' Miller continued. ''During the quarter, we introduced the next generation Media Composer XL 8.0 for Macintosh and Windows NT as well as Avid Unity(TM) MediaNet 1.0, which enables real-time, simultaneous sharing
of high-bandwidth media. During the second half of 1999, we have scheduled releases of Symphony 2.0, Symphony Universal, Avid ShowBiz(TM) Producer, an enhanced version of Softimage DS, and our next generation 3D animation software (code named ''Sumatra''). Additionally, we will provide increased connectivity of our products to
Avid Unity MediaNet. Each of these efforts will provide improved product functionality and better enable Avid to address our customers' needs.''
''Our balance sheet remains strong,'' Miller noted. ''We ended the quarter with cash and investments of $82.5 million, down from $101.5 million at March 31, 1999. This decline reflects the repurchase of 1.2 million shares of stock for $19.0 million during the quarter. Accounts receivable days sales outstanding increased slightly to 58 days,
while inventories declined by $0.6 million to $11.2 million.''
''In July, we announced initiatives to reassure our loyal Macintosh customer base that we will continue to develop and support the Macintosh platform as well as provide a migration path should they choose to convert to the NT platform in the future. These initiatives are intended to remove uncertainty that created sluggishness in Media Composer demand during the first two quarters of this year, and initial customer response appears to be positive,'' Miller concluded. |
