Avid posts 2Q results; revenues up 10.8% over 2Q 95, up 18% over 1Q 96;
loss of ($0.17) per share is down from ($1.08) per share in 1Q 96.
Press release follows:
July 29, 1996
Avid Technology Reports Results For Second Quarter 1996
TEWKSBURY, Mass.--(BUSINESS WIRE)--July 29, 1996-- Avid Technology, Inc.
(NASDAQ: AVID) today reported revenues of $109.1 million for the second
quarter ended June 30, 1996, an increase of 10.8% over second quarter 1995
revenues of $98.4 million. For the six-month period ended June 30, 1996,
revenues were $201.1 million, compared to $182.3 million in the same period
in 1995, an increase of 10.3%. The Company recorded a loss of $(0.17) per
share in the second quarter of 1996 compared to net earnings of $0.31 in
the second quarter of 1995. For the six-month period ended June 30, 1996,
the Company recorded a net loss of $(1.26), compared to net earnings of
$0.27 in the same period in 1995. The loss for the first six months of 1996
includes one-time, pre-tax charges of $20.2 million incurred in the first
quarter for restructuring costs and product transition costs associated
with the move from NuBus to PCI bus technology in certain of its product
lines. The earnings for the first six months of 1995 include a one-time,
pre-tax charge for transaction and restructuring costs of $5.5 million
incurred in connection with Avid's acquisitions of Digidesign, Inc.,
Elastic Reality, Inc., and Parallax Software, all of which were completed
during the first quarter of 1995.
William J. Miller, Avid's Chairman and CEO, commented: "While I am not
pleased to report a quarterly loss, there are several positive signs in the
second quarter. Revenues grew 18.5% sequentially from $92.0 million in the
first quarter, reversing a sequential decline in revenues in each of the
prior two quarters. Our gross margin improved to 45.5% in the second
quarter from 43.0% in the first quarter of 1996. Our loss narrowed from the
first quarter of 1996, even though in the second quarter we had the large
expense of the National Association of Broadcasters (NAB) show. Indeed, NAB
was a very strong show for Avid; we enjoyed good order and lead activity
and an encouraging reception for our new PCI-based Media Composer
products."
"We also achieved progress in improving our balance sheet," Miller stated.
"Our net receivables balance declined by $4.8 million to $87.5 million from
$92.3 million at March 31, 1996, even in the face of an 18.5% sequential
revenue increase. Receivables aging improved to 72 days sales outstanding
at June 30, 1996 from 90 days at March 31, 1996. Primarily as a result of
this improvement, and of continuing controls over capital spending, Avid
had a positive cash flow of $3.7 million in the second quarter of 1996,
compared to a cash burn of $27.7 million in the first quarter of 1996."
"During the quarter we commenced shipment of several new products, MCXpress
on both the Windows NT and Macintosh platforms, Media Illusion and the PCI
version of Digidesign's Pro Tools II product, as well as AudioVisual 3.6,"
Miller continued.
"Our priorities remain the same as we discussed last quarter," Miller
concluded. "We intend to focus on cash flow improvement, on returning to
profitability and on new product introductions. Although we have work to
do, we believe we have made a good start on those priorities."
The above may include forward-looking statements. Actual results may differ
materially from those described therein, depending on such factors as are
described under "Certain Factors That May Affect Future Results" in the
Company's Annual Report on Form 10-K for 1995, and Quarterly Report on Form
10-Q for the quarter ended March 31, 1996, filed with the SEC.
Avid Technology, Inc., headquartered in Tewksbury, Mass., is an
international developer and supplier of all-digital solutions for
capturing, creating, editing and distributing digital media on multiple
platforms. Joined through mergers with Digidesign, Elastic Reality and
Parallax Software, Avid's product line encompasses industry-leading
nonlinear film, video and audio editing, special effects and image
processing software, as well as networking, server and storage technologies
for applications such as television and film post production, broadcast
news, desktop video, multimedia and music production.
Avid, Digidesign, ProTools, AudioVision and Media Composer are registered
trademarks and Media Illusion and MCXpress are trademarks of Avid
Technology, Inc. All other trademarks contained herein are the property of
their respective owners.
AVID TECHNOLOGY, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
(unaudited) (unaudited) (unaudited) (unaudited)
Net revenues $109,095 $98,447 $201,134 $182,342
Cost of revenues 59,416 47,143 111,872 87,711
Gross profit 49,679 51,304 89,262 94,631
Operating expenses:
Research and
development 16,637 13,141 34,253 25,350
Marketing and selling 33,088 25,449 63,521 47,107
General and
administrative 6,081 4,110 11,579 8,344
Nonrecurring costs 20,150 5,456
Total operating
expenses 55,806 42,700 129,503 86,257
Operating income
(loss) (6,127) 8,604 (40,241) 8,374
Interest income
(expense), net 710 408 1,297 773
Income (loss) before
income taxes (5,417) 9,012 (38,944) 9,147
Provision (benefit) for
income taxes (1,760) 2,882 (12,489) 3,975
Net income (loss) ($3,657) $6,130 ($26,455) $5,172
Net income (loss) per
common share ($0.17) $0.31 ($1.26) $0.27
Weighted average common
and common equivalent
shares outstanding 21,104 19,989 21,062 19,059
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
1996 1995
(unaudited)
ASSETS:
Current assets:
Cash and marketable securities $56,468 $50,390
Accounts receivable, net of allowances
of $4,729 and $6,472 in 1996 and 1995,
respectively 87,515 107,859
Inventories 65,357 63,387
Other current assets 32,264 21,317
Total current assets 241,604 242,953
Marketable securities 30,102
Property and equipment, net 56,663 48,992
Other assets 4,480 9,557
Total assets $302,747 $331,604
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable and accrued expenses $51,571 $56,794
Deferred revenue and other current
liabilities 26,336 23,899
Total current liabilities 77,907 80,693
Long term debt 2,038 2,945
Total stockholders' equity 222,802 247,966
Total liabilities and stockholders'
equity $302,747 $331,604
CONTACT: Avid Technology Inc.
Scott Higgins, 508/640-3563
Patrice Burkett, 508/640-3669 |
