Avid and Tektronix Form Strategic Alliance to Help
Broadcasters Make Move From Analog to Digital Production
Leading Suppliers Announce Distribution Agreement; Intent to
Form Joint <>
TEWKSBURY, Mass. and BEAVERTON, Ore., Sept. 3
/PRNewswire/ -- Avid(R) Technology,
Inc., (Nasdaq: AVID) and Tektronix, Inc. (NYSE: TEK) today
announced a strategic alliance intended to provide broadcasters
with integrated end-to-end technology and equipment solutions as
the industry migrates to digital production. By providing customers
with integrated solutions through a single distribution channel, Avid
and Tektronix will be able to speed the digital migration process
and improve productivity. The strategic alliance between these
industry leaders includes three key initiatives: a distribution
agreement, the intent to form a joint venture designed to serve the
needs of broadcast newsrooms, and a technology development
alliance.
"Now, two of the world's leading broadcast suppliers are coming
together to offer world-class solutions to our mutual broadcast
customers," said Avid CEO and Chairman William J. Miller.
"Tektronix is a great choice as a partner because of their strong
presence in broadcast, and equally, their leadership role in
supporting open standards."
"The alliance between Avid and Tektronix enables us to build on our
respective area of expertise in the broadcast industry and deliver
customer solutions faster and more efficiently than either company
could on its own, " said Tim Thorsteinson, president, Tektronix
Video and Networking Division.
"This alliance marks a significant step forward in a pivotal and
rapidly changing industry. At CNN, we have been leaders in
adopting evolving digital capabilities to news gathering and
production processes. The kind of partnership represented by this
alliance between Tektronix and Avid is aimed at solving the design,
implementation, integration and support problems we know to be
central to the digitization and automation of our main business
process and the overall technical improvement of our news
product," said Scott Teissler, senior vice president, CNN
Broadcasting in Atlanta.
Integrated, End-to-End Customer Solutions
The Avid/Tektronix alliance will mean that customers will, for the
first time, have access to a truly integrated, end-to-end digital
broadcast solution. Avid, the industry-leading provider of
computer-based solutions for video, film and audio applications,
offers a premier line of digital content creation tools. Tektronix has
a similar leading reputation in video servers and digital broadcast
systems. By linking the world-class products of these two
companies, broadcasters will experience a more seamless move to
digital television.
The first product of the alliance -- an Avid NewsCutter(TM) DV
nonlinear editing system integrated with a Tektronix Profile(R)
digital video server -- is expected to be demonstrated at the
International Broadcast Conference (IBC) this month in Amsterdam,
The Netherlands. This system will be the first open-standard
end-to-end solution available to the industry.
Distribution Agreement
As of October 1, 1998, Tektronix becomes the exclusive distributor
of Avid's broadcast products in the United States and Canada, and
will have non-exclusive distribution rights to Avid's line of
professional products into broadcast accounts in both countries.
Joint Venture
To provide customers with world-class newsroom systems,
Tektronix and Avid have signed a memorandum of understanding
indicating the intent to combine their newsroom computing
technologies and personnel in a 50/50 owned joint venture. This
agreement anticipates the consolidation of the AvidNews(TM)
Newsroom Computer System and Tektronix' NewStar(R) assets
and their respective combined workforces into one operation. The
joint venture's mission will be to offer customers the best newsroom
computer technology as well as to facilitate tight integration
between the leading technologies offered by both companies.
Technology Alliance
As the broadcast industry shifts from analog to digital production,
broadcast facilities, which have been traditionally supported by
physical hardware and movement of analog video output, are
increasingly reliant on digital software geared toward creating,
managing, moving and re-purposing video and audio content. In the
intended technology alliance, Avid and Tektronix will link existing
products and collaborate on future products, so that customers do
not have to compromise when choosing broadcast equipment and
are free to choose the best-in-class products from each company.
Strategic Fit and Benefits
The Avid/Tektronix alliance will offer each company the opportunity
to reach new markets as Avid capitalizes on Tektronix'
relationships and distribution channel in the broadcast industry and
its leadership in digital video servers, and as Tektronix builds on
Avid's leadership position in digital video content creation tools. The
alliance will also bring together the expertise needed to develop
next generation products and services for the broadcast industry.
Based on Avid's and Tektronix' current financial projections, this
alliance is not expected to have a material effect on either
company's near term financial results.
Statements and information in this press release that relate to
future results and events are based on either or both companies'
current expectations, as applicable. They constitute forward looking
statements subject to a number of risk factors that could cause
actual results to differ materially from those currently expected or
desired, including risk factors listed from time-to-time in either
company's Securities and Exchange Commission reports,
including but not limited to the quarterly report on Form 10-Q and
the annual report on Form 10-K and press releases.
About the Companies
Avid Technology, Inc. is an international, industry-leading provider
of digital audio and video tools for information and entertainment
applications. The company's products are used by a variety of
customers worldwide, including film, television and interactive
content producers, corporate communicators, TV news
broadcasters and consumers. For more information, visit Avid's
World Wide Web site at www.avid.com.
Tektronix is a portfolio of measurement, color printing, and video
and networking businesses dedicated to applying technology
excellence to customer challenges. Tektronix is headquartered in
Wilsonville, Ore., and has operations in 25 countries outside the
United States. Founded in 1946, the company had revenues of $2.1
billion in fiscal 1998. For more information, visit the Tektronix World
Wide Web site at www.tek.com.
Avid is a registered trademark of Avid Technology, Inc. and
Tektronix, NewStar and Profile are registered trademarks of
Tektronix, Inc. The Avid NewsCutter and AvidNews are trademarks
of Avid Technology, Inc. All other trademarks are the properties of
their respective owners. SOURCE Tektronix, Inc.
/CONTACT: Heather Wyse, 503-685-2878, or Laura Barber, 503-627-6240, both
of Tektronix, Inc.; or David Conti of Avid Technology, Inc.,
978-640-3669; or Ryan Donovan of Thomas Associates, Inc., 650-596-2700,
ext. 212/
/Web site: avid.com
/Web site: tek.com
(TEK)
[Copyright 1998, PR Newswire]
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