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Technology Stocks : Avid Technology -- Ignore unavailable to you. Want to Upgrade?

To: Yujin Maison who wrote (712)	7/22/1999 5:21:00 PM
From: BMcV	Respond to of 777

Earnings are out: biz.yahoo.com Thursday July 22, 3:59 pm Eastern Time Company Press Release Avid Technology Announces Results for the Second Quarter 1999 TEWKSBURY, Mass.--(BUSINESS WIRE)--July 22, 1999--Avid Technology, Inc. (NASDAQ:AVID - news) today reported its financial results for the second quarter ended June 30, 1999. Revenues rose to $116.4 million compared to $112.9 million in the second quarter 1998. For the second quarter of 1999, the Company recorded a net loss of $8.0 million, or $0.34 per share, which includes amortization of acquisition-related intangible assets resulting from the 1998 acquisition of Softimage Inc. Excluding the acquisition-related amortization, the Company recorded tax-effected income of $2.7 million, or $0.10 per diluted share, compared with net income of $9.2 million, or $0.37 per diluted share, in the same quarter a year earlier. For the six-month period ended June 30, 1999, revenues were $227.6 million versus $221.6 million in the same period in 1998. For the six-month period ended June 30, 1999, the Company recorded a net loss of $19.5 million, or $0.81 per share. Excluding acquisition-related amortization, net income was $5.4 million, or $0.20 per diluted share, compared to $16.9 million, or $0.69 per diluted share, for the same six-month period in 1998. William J. Miller, Avid's Chairman and CEO, commented, ''Revenues for the quarter reflected modest sequential and year over year growth, despite a difficult industry environment. Sales of Symphony(TM), Softimage® DS, and Avid Xpress(TM) products, as well as Media Composer® upgrades, showed improvement from first quarter 1999 levels, but this growth was partly offset by continued sluggishness in Media Composer system and broadcast products sales as well as weaker currencies in Europe and Japan. Additionally, Digidesign revenues improved significantly versus prior year, but were below their record first quarter 1999 level.'' ''Gross margin for the second quarter was 56.8% versus 60.1% in the first quarter of 1999,'' Miller continued. ''The sequential decline in gross margin reflects increased sales of NT-based Media Composer and Avid Xpress products, which are generally shipped as fully configured systems and carry lower margins. We were more aggressive with our pricing during the quarter, particularly with the Avid Xpress price reductions announced in June. The second quarter margin also reflected increased sales of upgrades which carry lower margins, as well as the adverse foreign currency impact.'' ''On balance, we were very pleased to see increased demand for our high-end Symphony and Softimage DS finishing solutions,'' Miller continued. ''During the quarter, we introduced the next generation Media Composer XL 8.0 for Macintosh and Windows NT as well as Avid Unity(TM) MediaNet 1.0, which enables real-time, simultaneous sharing of high-bandwidth media. During the second half of 1999, we have scheduled releases of Symphony 2.0, Symphony Universal, Avid ShowBiz(TM) Producer, an enhanced version of Softimage DS, and our next generation 3D animation software (code named ''Sumatra''). Additionally, we will provide increased connectivity of our products to Avid Unity MediaNet. Each of these efforts will provide improved product functionality and better enable Avid to address our customers' needs.'' ''Our balance sheet remains strong,'' Miller noted. ''We ended the quarter with cash and investments of $82.5 million, down from $101.5 million at March 31, 1999. This decline reflects the repurchase of 1.2 million shares of stock for $19.0 million during the quarter. Accounts receivable days sales outstanding increased slightly to 58 days, while inventories declined by $0.6 million to $11.2 million.'' ''In July, we announced initiatives to reassure our loyal Macintosh customer base that we will continue to develop and support the Macintosh platform as well as provide a migration path should they choose to convert to the NT platform in the future. These initiatives are intended to remove uncertainty that created sluggishness in Media Composer demand during the first two quarters of this year, and initial customer response appears to be positive,'' Miller concluded.

To: Yujin Maison who wrote (712)	7/22/1999 5:26:00 PM
From: BMcV	Read Replies (1) \| Respond to of 777

Financials: Three Months Ended Six Months Ended June 30, June 30, --------------------------------- 1999 1998 1999 1998 (unaudited)(unaudited)(unaudited)(unaudited) Net revenues $116,353 $112,852 $227,636 $221,594 Cost of revenues 50,275 44,537 94,696 90,064 Gross profit 66,078 68,315 132,940 131,530 Operating expenses: Research and development 22,644 20,616 46,893 40,928 Marketing and selling 33,525 30,584 66,087 58,278 General and administrative 7,270 6,450 14,011 13,029 Amortization of acquisition-related intangible assets 19,787 -- 40,298 -- Total operating expenses 83,226 57,650 167,289 112,235 Operating income (loss) (17,148) 10,665 (34,349) 19,295 Interest and other income, net 1,263 2,713 1,863 5,249 Income (loss) before income taxes (15,885) 13,378 (32,486) 24,544 Provision for (benefit from) income taxes (7,849) 4,147 (12,995) 7,608 Net income (loss) ($8,036) $9,231 ($19,491) $16,936 Net income (loss) per common share - diluted ($0.34) $0.37 ($0.81) $0.69 Weighted average common shares outstanding - diluted 23,946 24,833 24,167 24,687 Supplemental Information: Tax-effected income, excluding amortization of acquisition-related charges $2,692 $9,231 $5,390 $16,936 Tax-effected income, excluding amortization of acquisition-related charges per common share - diluted $0.10 $0.37 $0.20 $0.69 Weighted average common shares outstanding - diluted - used for tax-effected income, excluding amortization of acquisition-related charges calculation 25,781 24,833 26,407 24,687 AVID TECHNOLOGY, INC. Condensed Consolidated Balance Sheets (in thousands) June 30 December 31 1999 1998 ASSETS: (unaudited) Current assets: Cash and marketable securities $82,456 $111,826 Accounts receivable, net of allowances of $7,827 and $7,171 in June 1999 and December 1998, respectively 75,579 89,754 Inventories 11,235 11,093 Other current assets 30,644 28,974 Total current assets 199,914 241,647 Property and equipment, net 38,491 35,398 Long term deferred tax asset 34,292 23,891 Acquisition-related intangible assets 134,640 181,631 Other assets 6,215 4,148 Total assets $413,552 $486,715 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $28,229 $24,311 Accrued expenses 46,846 75,454 Deferred revenue and other current liabilities 19,422 22,917 Total current liabilities 94,497 122,682 Long term liabilities, less current portion 8,647 13,261 Purchase consideration 39,157 60,461 Total stockholders' equity 271,251 290,311 Total liabilities and stockholders' equity $413,552 $486,715