AVID TECHNOLOGY, INC.
Avid Technology Park
One Park West
Tewksbury, MA 01876
January 29, 2004
Securities and Exchange Commission
450 Fifth Street, N.W.
Judiciary Plaza
Washington, DC 20549
Re: Avid Technology, Inc.
File No. 0-21174
Form 8-K
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Ladies and Gentlemen:
Pursuant to regulations of the Securities and Exchange Commission,
submitted herewith for filing on behalf of Avid Technology, Inc. is the
Company's Form 8-K dated the 29th day of January, 2004.
This filing is being effected by direct transmission to the Commission's
EDGAR System.
Very truly yours,
/s/ Carol E. Kazmer
Carol E. Kazmer
General Counsel
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 29, 2004
AVID TECHNOLOGY, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 0-21174 04-2977748
(State or Other Jurisdiction of (Commission File Number) (I.R.S. Employer
Incorporation or Organization) Identification No.)
Avid Technology Park, One Park West, Tewksbury, MA 01876
(Address of Principal Executive Offices) (zip code)
Registrant's telephone number, including area code: (978) 640-6789
This is Page 1 of 4 pages
Exhibit Index is on Page 4
Item 12. Disclosure of Results of Operations and Financial Condition
On January 29, 2004, the Registrant announced its financial results for
the quarter ended December 31, 2003. The full text of the press release issued
in connection with the announcement is attached as Exhibit 99.1 to this Current
Report on Form 8-K.
The information in this Form 8-K and the Exhibit attached hereto shall not
be deemed "filed" for purposes of the Securities Exchange Act of 1934 (the
"Exchange Act"), nor shall it be deemed incorporated by reference in any filing
under the Securities Act of 1933 or the Exchange Act, except as expressly set
forth by specific reference in such a filing.
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: January 29, 2004 AVID TECHNOLOGY, INC.
(Registrant)
By: /s/Paul Milbury
----------------------------
Paul Milbury
Chief Financial Officer
(Principal Financial Officer)
3
EXHIBIT INDEX
Exhibit Description
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99.1 Press release of the Registrant dated January 29, 2004.
4
Contact: Dean Ridlon, Investor Relations Director
Phone: 978.640.5309
Email: Investor_Relations@avid.com
Avid Closes 2003 with Highest Ever Quarterly and Annual Net Income
TEWKSBURY, Mass. - January 29, 2004 - Avid Technology, Inc. (NASDAQ: AVID) today
reported record earnings for the fourth quarter and year ended December 31,
2003. Net income for the fourth quarter was $15.8 million, or $.47 per diluted
share, on revenues of $127.3 million. This compares to net income of $4.3
million, or $.15 per diluted share, on revenues of $112.8 million for the
corresponding quarter in 2002.
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(TM) 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(R), Grammy(R),
and Emmy(R) award-winning products and services, please visit: www.avid.com.
(C) 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(R) Film Composer(R) 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 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
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Net income per common share - basic $0.51 $0.16 $1.40 $0.11
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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
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AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2003 2002
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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 December 31, 2002, respectively 69,230 65,942
Inventories 38,292 38,047
Prepaid and other current assets 13,181 11,919
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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
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Total assets $348,119 $235,803
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $15,755 $24,297
Accrued expenses and other current liabilities 59,709 51,032
Deferred revenue 44,943 35,483
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Total current liabilities 120,407 110,812
Long term liabilities, less current portion 607 1,427
Total stockholders' equity 227,105 123,564
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Total liabilities and stockholders' equity $348,119 $235,803
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