Uncle Dave:
Query: In what way did the "...last major acquisition screw up the company for two years"? That the company was "screwed up" in 1995 and 1996 seems indisputable, but what is the connection with the acquisition in early 1995 of Digidesign?
Factoid: Avid were taken public in 1993, according to the cover of the Prospectus, by Morgan Stanley, Robertson Stephens and Volpe Welty. (Although if Prudential prints an advertisement on this acquisition, I will concede your point.)
Follow-up: According to Investor Relations at Avid, Symphony is "incomplete" because it has not yet been released to market - or perhaps it's the other way round;-). In response to a question, they also opined that the level of Softimage's "industry presence" is consistent with any new product that has been shipping for less than six months (Ed: especially given the FUD about Digital Studio that Avid were spreading pending the release of Symphony). What were Flame revenues in its first six months?
Opinion: Acquisition accounting, either purchase or pooling, is one of the greatest shell games still going. Can there be any doubt that Avid will find a way - Purchased R&D? Acquisition of Incomplete Technology? - to write off all, or substantially all, of the purchase price in the quarter in which the transaction closes (and thereby leaving no goodwill to be amortized)?
Hypothesis: Is that a graveyard we espy as we hear the winsome sound of whistling from our favorite long-time Discreet Logic bull?
Auntie Marguerite |
