Press Release
<< Back
Avid Closes 2003 with Highest Ever Quarterly and Annual Net Income
Net income for the year ended December 31, 2003 was $40.9 million, or $1.25 per diluted share, on revenues of $471.9 million. This compares to net income of $3.0 million, or $.11 per diluted share, on revenues of $418.7 million reported for 2002.
Avid's revenues increased by 13% year-over-year for both the fourth quarter and the full year. Gross margins for the fourth quarter of 2003 were 57.8%, more than two percentage points higher than the third quarter of 2003 and more than five points higher than the fourth quarter of 2002. Included in the fourth quarter of 2003's operating expenses is a $1.3 million non-cash charge related to vacating real estate subject to long-term leases in the San Francisco area.
"Our strong fourth quarter results cap off an extremely successful year for Avid," said David Krall, Avid's president and chief executive officer. "Our net income for both the fourth quarter and the full year was our highest ever. We achieved double-digit percentage growth, year-over-year, in our quarterly revenue for both our video and audio segments, resulting in our highest annual revenue growth since 1995. At the same time, we more than doubled our cash balance during the year to nearly $200 million at year-end. Since then, we have used some of these cash reserves to acquire NXN Software AG, which we closed on January 26, 2004. We also increased our stockholders' equity from $123.6 million as of December 31, 2002, to $227.1 million as of December 31, 2003."
Krall continued, "These results come at the end of a year in which we delivered some of the most ground-breaking products in our 16-year history, including the new Avid DNA family. We're very pleased with our accomplishments on both the product and financial levels, and we believe that our commitment to technological innovation will continue to drive our success in the future."
Conference Call
A conference call to discuss Avid's fourth quarter 2003 financial results and the company's outlook for 2004 will be held today, January 29 at 5:00 p.m. EST. The call will be open to the public. The conference call can be accessed by dialing (719) 457-2617 and referencing confirmation code 728235. 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.
The above release includes a forward-looking statement, as defined by the Private Securities Litigation Reform Act of 1995, about Avid's future performance. There are a number of factors that could cause actual events or results of operations to differ materially from that indicated by such forward-looking statement, such as continued 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 September 30, 2003, and other filings with the Securities and Exchange Commission. In addition, the forward-looking statement contained herein represents Avid's estimate only as of today and should not be relied upon as representing the company's estimate as of any subsequent date. While Avid may elect to update this forward-looking statement at some point in the future, Avid specifically disclaims any obligation to do so, even if the estimate changes.
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 DNA 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 Balance Sheets
(in thousands)
Dec. 31, Dec. 31,
2003 2002
--------- ---------
ASSETS:
Current assets:
Cash and marketable securities $196,309 $89,034
Accounts receivable, net of allowances
of $9,161 and $10,614 at December 31,
2003 and 2002, respectively 69,230 65,942
Inventories 38,292 38,047
Prepaid and other current assets 13,181 11,919
--------- ---------
Total current assets 317,012 204,942
Property and equipment, net 23,223 25,731
Acquisition-related intangible assets, net 5,151 2,600
Other assets 2,733 2,530
--------- ---------
Total assets $348,119 $235,803
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $15,755 $24,297
Accrued expenses and other current liabilities 59,709 51,032
Deferred revenues 44,943 35,483
--------- ---------
Total current liabilities 120,407 110,812
Long term liabilities, less current portion 607 1,427
Total stockholders' equity 227,105 123,564
--------- ---------
Total liabilities and stockholders' equity $348,119 $235,803
========= =========
AVID TECHNOLOGY, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
---------------------- -------------------
2003 2002 2003 2002
----------- ---------- --------- ---------
(unaudited) (unaudited)
Net revenues $127,328 $112,784 $471,912 $418,719
Cost of revenues 53,754 53,708 209,373 207,236
----------- ---------- --------- ---------
Gross profit 73,574 59,076 262,539 211,483
----------- ---------- --------- ---------
Operating expenses:
Research and development 21,719 21,201 85,552 82,346
Marketing and selling 28,733 25,343 109,704 100,761
General and
administrative 6,576 4,834 23,208 19,819
Restructuring and other
costs, net 1,335 3,250 3,194 2,923
Amortization of
acquisition-related
intangible assets 341 293 1,316 1,153
----------- ---------- --------- ---------
Total operating
expenses 58,704 54,921 222,974 207,002
Operating income 14,870 4,155 39,565 4,481
Interest and other income
(expense), net 544 411 1,874 218
----------- ---------- --------- ---------
Income before income taxes 15,414 4,566 41,439 4,699
Provision for (benefit from)
income taxes (350) 300 550 1,700
----------- ---------- --------- ---------
Net income $15,764 $4,266 $40,889 $2,999
=========== ========== ========= =========
Net income per common
share - basic $0.51 $0.16 $1.40 $0.11
=========== ========== ========= =========
Net income per common
share - diluted $0.47 $0.15 $1.25 $0.11
=========== ========== ========= =========
Weighted average common
shares outstanding
- basic 30,764 26,738 29,192 26,306
=========== ========== ========= =========
Weighted average common
shares outstanding
- diluted 33,864 28,268 32,653 26,860
=========== ========== ========= =========
CONTACT: Avid Technology, Inc.
Dean Ridlon, 978-640-5309
Investor_Relations@avid.com
SOURCE: Avid Technology, Inc.