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Technology Stocks : Avid Technology

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To: orson sanderson who wrote (350)9/10/1997 12:25:00 AM
From: Perry Kivolowitz   of 777
 
Orson,

In the past, management at Avid has been hugely committed to building its broadcast business. As for the present and future, I would have no way of knowing.

The problems that Avid faces in the broadcast market are the same that any new entrant to that market would face. Broadcasters require solutions that not only work perfectly, but work perfectly all the time. Anything less would risk the potential of dead air and broadcasters are notoriously risk sensitive.

I think Avid's success in the broadcast market will be shaped like a step function...little or no success until each product proves itself, then a flood of success. The long term potential is great, but the short term can be a real drag on the balance sheet.

I think it's great that Avid has been able to turn around their balance sheet even in the presence of their continuing committment to developing a broadcast business. In a very real sense, it's an investment in the future.
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