Avid Technology Announces Preliminary Results For The Third Quarter Of 1996
TEWKSBURY, Mass., Oct. 11. Avid Technology Inc today announced that it expects that its results for the third quarter ending September 30, 1996 will include one-time charges of approximately $9 million, principally related to the Company's decision not to release the Avid Media Spectrum product line. As a result, the Company believes it will report a loss for the quarter in the range of $0.32 to $0.37 per share. Excluding the one-time charges, the Company believes that it will report a loss in the range of $0.04 to $0.09 per share. The Company expects to report revenues of approximately $115 million for the quarter, an increase of 5% above the second quarter of 1996. The
Company plans to release its full third quarter results on Thursday, October 24, 1996.
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Media Spectrum was their non-compressed video editing system, starting somewhere around $250,000 I believe. The future of nonlinear video is not in these stratospherically priced proprietary systems. I'm not sure why Avid chose not to release it, but I suspect they realized there were not that many potential customers in this price range.
First Call's mean estimate was for a loss of ($0.01) per share. The good news is that the $115 million in revenues is a record for quarterly sales, just slightly ahead of 3Q95's $114 million, so Avid is still selling plenty of systems. However, this loss will bring the YTD loss to about $34 million, or ($1.60) per share. Note that even without the special charge, Avid still wasn't making money, even on these record sales.
Well, as I have been saying now for over a year, this is a very badly managed company with great products (still the number one in the market). Look out for another slide on Monday.
D. Kuspa |
