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Avid Reports Strong Revenue and Profit Growth in Third Quarter
Net income for the third quarter was $11.8 million or $.35 per diluted share compared to net income of $2.3 million or $.09 per diluted share for the corresponding quarter in 2002. Net income for the nine-month period ended September 30, 2003 was $25.1 million or $.78 per diluted share compared to a net loss of $1.3 million or $.05 per share for the same period in 2002.
Avid's cash and marketable securities increased during the third quarter by $36.6 million to $171.6 million on September 30, 2003. Approximately $17 million of the increase was generated through operations and the balance from employee stock program activity. Since the beginning of 2003, the company's cash and marketable securities balance has nearly doubled.
"Our third quarter results are another indicator that our long-term strategy is paying off," said David Krall, Avid's president and chief executive officer. "Year-over-year, the combination of our increasing revenue, expanding gross margins, and cost containment efforts enabled us to generate more than five times the quarterly net income posted just one year ago. We believe we've put the essential building blocks in place in all areas of our business to enable further increases in Avid's revenue and profitability."
A conference call to discuss Avid's third quarter 2003 financial results and the company's outlook for the fourth quarter of 2003 and full year 2004 will be held today, October 16 at 5:00 p.m. ET. The call will be open to the public. The conference call can be accessed by dialing (913) 981-5542 and referencing confirmation code 770128. The call and subsequent replay will also be available on Avid's Web site. To listen via this alternative, go to the investor relations page at www.avid.com for complete details 10-15 minutes prior to the start of the conference call.
The above release includes forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1996, including statements about Avid's financial outlook, products and functionality, and size and growth of existing markets. There are a number of factors that could cause actual events or results of operations to differ materially from those indicated by such forward-looking statements, such as market acceptance of Avid's products, further weakening of worldwide economic conditions and the other factors set forth under the caption "Certain Factors That May Affect Future Results" in Avid's Form 10-Q for the quarter ended June 30, 2003 and other filings with the Securities and Exchange Commission. In addition, any forward-looking statements contained herein represent Avid's estimates only as of today and should not be relied upon as representing the company's estimates as of any subsequent date. While Avid may elect to update forward-looking statements at some point in the future, Avid specifically disclaims any obligation to do so, even if the estimates change.
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.
© 2003 Avid Technology, Inc. All rights reserved. Avid and Film Composer 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. Oscar is a registered 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 & 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 Nine Months Ended September 30, September 30, 2003 2002 2003 2002 (unaudited) (unaudited)(unaudited)(unaudited) Net revenues $119,090 $107,832 $344,584 $305,935 Cost of revenues 52,784 53,222 155,619 153,528 Gross profit 66,306 54,610 188,965 152,407 Operating expenses: Research and development 20,706 20,916 63,833 61,145 Marketing and selling 27,959 25,677 80,971 75,418 General and administrative 5,670 5,454 16,632 14,985 Restructuring and other costs, net 76 1,859 (327) Amortization of acquisition-related intangible assets 341 257 975 861 Total operating expenses 54,752 52,304 164,270 152,082 Operating income 11,554 2,306 24,695 325 Interest and other income (expense), net 592 259 1,330 (192) Income before income taxes 12,146 2,565 26,025 133 Provision for income taxes 300 300 900 1,400 Net income (loss) $11,846 $2,265 $25,125 ($1,267) Net income (loss) per common share - basic $0.40 $0.09 $0.88 ($0.05) Net income (loss) per common share - diluted $0.35 $0.09 $0.78 ($0.05) Weighted average common shares outstanding - basic 29,865 26,287 28,663 26,064 Weighted average common shares outstanding - diluted 33,380 26,550 32,059 26,064 AVID TECHNOLOGY, INC. Condensed Consolidated Balance Sheets (in thousands) September 30, December 31, 2003 2002 (unaudited) ASSETS: Current assets: Cash and marketable securities $171,649 $89,034 Accounts receivable, net of allowances of $9,646 and $10,614 at September 30, 2003 and December 31, 2002, respectively 60,843 65,942 Inventories 38,558 38,047 Prepaid and other current assets 12,166 11,919 Total current assets 283,216 204,942 Property and equipment, net 22,309 25,731 Acquisition-related intangible assets, net 2,205 2,600 Other assets 2,869 2,530 Total assets $310,599 $235,803 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $16,477 $24,297 Accrued expenses and other current liabilities 53,789 51,032 Deferred revenues 42,115 35,483 Total current liabilities 112,381 110,812 Long term liabilities, less current portion 759 1,427 Total stockholders' equity 197,459 123,564 Total liabilities and stockholders' equity $310,599 $235,803
CONTACT: Avid Technology, Inc.
Dean Ridlon, 978-640-5309
SOURCE: Avid Technology, Inc.