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Avid Posts Record First Quarter Revenues and Earnings
The 14% year-over-year increase in Avid's revenues is due to strong sales broadly across the company's video and audio product lines - including the new Avid DNA family of video editing solutions, Avid's broadcast and newsroom products, the Avid Unity suite of shared-storage solutions, and Digidesign's® home and project studio systems.
"For two consecutive quarters, Avid has delivered record revenues and earnings," said David Krall, Avid's president and chief executive officer. "Year-over-year, our revenues were up 16% for the video segment and 8% for the audio segment, and our overall gross margins were up more than four percentage points. This operating leverage resulted in a 165% increase in our operating income from one year ago. These results come at a great time for Avid, as we prepare to showcase our latest products, technologies, and innovations at next week's National Association of Broadcasters convention."
Conference Call
A conference call to discuss Avid's first quarter 2004 financial results and the company's outlook for the balance of 2004 will be held today, April 15th at 5:00 p.m. EDT. The call will be open to the public. The conference call can be accessed by dialing (719) 457-2692 and referencing confirmation code 564316. The call and subsequent replay will also be available on Avid's Web site. To listen via this alternative, go to the Investors page under the Company menu at www.avid.com for complete details 10-15 minutes prior to the start of the conference call.
About Avid Technology, Inc.
Avid Technology, Inc. is the world leader in digital nonlinear media creation, management and distribution solutions, enabling film, video, audio, animation, games, and broadcast news professionals to work more efficiently, productively and creatively. For more information about the company's Oscar®, Grammy®, and Emmy® award-winning products and services, please visit: www.avid.com.
© 2004 Avid Technology, Inc. All rights reserved. Avid, Avid Unity, Avid DNA, Digidesign, Film Composer and Pro Tools are either registered trademarks or trademarks of Avid Technology, Inc. in the United States and/or other countries. Avid received an Oscar statuette representing the 1998 Scientific and Technical Award for the concept, design, and engineering of the Avid Film Composer® system for motion picture editing. Digidesign, Avid's audio division, received an Oscar statuette representing the 2003 Scientific and Technical Award for the design, development, and implementation of its Pro Tools® digital audio workstation. Oscar is a trademark and service mark of the Academy of Motion Picture Arts and Sciences. Emmy is a registered trademark of ATAS/NATAS. Grammy is a trademark of the National Academy of Recording Arts and Sciences, Inc. All other trademarks contained herein are the property of their respective owners.
AVID TECHNOLOGY, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
2004 2003
(unaudited) (unaudited)
Net revenues $127,374 $112,177
Cost of revenues 54,103 52,227
Gross profit 73,271 59,950
Operating expenses:
Research and development 22,292 21,699
Marketing and selling 29,854 25,264
General and administrative 5,886 5,345
Restructuring and other costs, net 1,783
Amortization of acquisition-related
intangible assets 439 293
Total operating expenses 58,471 54,384
Operating income 14,800 5,566
Interest and other income (expense), net (560) 231
Income before income taxes 14,240 5,797
Provision for (benefit from) for income taxes (500) 300
Net income $14,740 $5,497
Net income per common share - basic $0.47 $0.20
Net income per common share - diluted $0.44 $0.18
Weighted average common shares outstanding -
basic 31,202 27,604
Weighted average common shares outstanding -
diluted 33,740 29,860
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2004 2003
(unaudited)
ASSETS:
Current assets:
Cash and marketable securities $170,024 $196,309
Accounts receivable, net of allowances of
$8,714 and $9,161 at March 31, 2004 and
December 31, 2003, respectively 74,892 69,230
Inventories 35,818 38,292
Prepaid and other current assets 13,907 13,181
Total current assets 294,641 317,012
Property and equipment, net 25,159 23,223
Acquisition-related intangible assets, net 50,728 5,150
Other assets 5,602 2,734
Total assets $376,130 $348,119
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $19,843 $15,755
Accrued expenses and other current
liabilities 51,936 59,709
Deferred revenues 57,871 44,943
Total current liabilities 129,650 120,407
Long term liabilities, less current
portion 470 607
Total stockholders' equity 246,010 227,105
Total liabilities and stockholders'
equity $376,130 $348,119
CONTACT: Avid Technology, Inc.
Dean Ridlon, 978-640-5309
Investor_Relations@avid.com
SOURCE: Avid Technology, Inc.