Perry, congrats on your baby boy. Your posting was a little confusing to me, so pardon me if I have misinterpretted your comments. Are you saying that Avid Cinema is not targeted at those who would purchase an Adobe Premiere system? If so, then I agree with you. Avid Cinema seems clearly aimed at the extreme low end; e.g. mom and dad consumers who might want to edit their family/vacation camcorder footage. Unfortunately, I think even the average camcorder user will be somewhat disappointed with the quality of his video after he's done outputting it from Avid Cinema. Unless you tell me that it is 60fps and VHS quality or better. Sure, it would be great if Avid Cinema sold tens of millions of units. Perhaps then it would be a significant profit generator for Avid, but I don't think it's likely.
As far as the TRUV comment goes, see posts #44-48. A TRUV shareholder said he had info to this effect, but did not follow up with my request for more explicit info to prove his assertion that TRUV wasn't supplying boards to Avid any longer. Please let us know if you have info to the contrary.
The most important question we shareholders need answered is how Avid plans to restructure its products/costs to make at least a modest profit from its extremely successful line of video post production tools. $115 million in sales last quarter (best ever) and still losing money, even without the charge for the Media Spectrum writeoff. The entry ticket to the nonlinear video market is getting cheaper, with lower-priced competition getting closer in capabilities all the time. Don't get me wrong, Avid is still the best. But Avid will have a tough time raising their prices in order to make a profit in this environment.
D. Kuspa |
