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): April 15, 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 April 15, 2004, the Registrant announced its financial results for
the quarter ended March 31, 2004. 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: April 15, 2004 AVID TECHNOLOGY, INC.
(Registrant)
By: /s/ Paul Milbury
-----------------
Paul Milbury
Chief Financial Officer
(Principal Financial Officer)
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EXHIBIT INDEX
Exhibit Description
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99.1 Press release of the Registrant dated April 15, 2004.
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Contact: Dean Ridlon, Investor Relations Director
Phone: 978.640.5309
Email: Investor_Relations@avid.com
Avid Posts Record First Quarter Revenues and Earnings
TEWKSBURY, MA - April 15, 2004 - Avid Technology, Inc. (NASDAQ: AVID) today
reported record first quarter revenues and earnings. Net income for the three
months ended March 31, 2004 was $14.7 million, or $.44 per diluted share, on
revenues of $127.4 million. This compares to net income of $5.5 million, or $.18
per diluted share, on revenues of $112.2 million for the corresponding quarter
in 2003.
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(TM) family of video editing solutions, Avid's broadcast and newsroom
products, the Avid Unity(TM) suite of shared-storage solutions, and
Digidesign's(R) 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(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 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(R)
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(R) 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
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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
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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
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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
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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
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Total liabilities and stockholders' equity $376,130 $348,119
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