Avid Technology Park
                                  One Park West
                               Tewksbury, MA 01876

                                             February 4, 1999

OFIS Filer Support
SEC Operations Center
6432 General Green Way
Alexandria, VA  22312-2413

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 4th day of February, 1999.

      This filing is being effected by direct  transmission to the  Commission's
EDGAR System.

                                             Very truly yours,

                                             /s/ Frederic G. Hammond

                                             Frederic G. Hammond
                                             General Counsel


                             Washington, D.C. 20549

                                    FORM 8-K

                                 Current Report

                       Pursuant to Section 13 or 15 (d) of
                       the Securities Exchange Act of 1934

                                February 4, 1999

                 (Date of Report; Date of Earliest Event Reported)

                              AVID TECHNOLOGY, INC.

              (Exact name of registrant as specified in its charter)


                  (State or other jurisdiction of incorporation)

      0-21174                                           04-2977748

(Commission File Number)                      (IRS Employer Identification No.)

             Avid Technology Park, One Park West, Tewksbury, MA 01876

(Address of principal executive offices)                        (Zip Code)

                                  (978) 640-6789

               (Registrant's telephone number, including area code)


Item 5.        Other Events:

            On February 4, 1999, Avid Technology, Inc. issued a press release
relating to its results for the fourth quarter of 1998.  A copy of the press
release is attached hereto as Exhibit 99.1.

Item 7.        Exhibits:

          EXHIBIT NO.         DESCRIPTION

             99.1             Press release issued February 4, 1999


          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 thereunto duly authorized.


                                               AVID TECHNOLOGY, INC.

                                               By:   /s/ William L. Flaherty
                                                     William L. Flaherty
                                                     Senior Vice President of
                                                     Finance, Chief Financial
                                                     Officer and Treasurer

Date:     February 4, 1999

                                  EXHIBIT INDEX

Exhibit                                               Sequentially
NUMBER                      DESCRIPTION               NUMBERED PAGE

99.1                        Press Release                  5

Contacts:  Cheryl Reault, Director, Investor Relations 978/640-3563
           Christine Mann, Vice President, Corporate Communications 978/640-5495


                      RESULTS FOR THE FOURTH QUARTER 1998

              CHARGES RISES 63% TO $15.2 MILLION OR $0.57 PER SHARE

TEWKSBURY,  Mass.  (February 4, 1999) -- Avid Technology,  Inc.  (NASDAQ:  AVID)
today  reported  record  revenues and operating  results for the fourth  quarter
ended December 31, 1998.  Fourth  quarter  revenues were a record $144.6 million
compared to $123.7  million in the fourth  quarter  1997.  The Company  recorded
tax-effected  fourth  quarter income of $15.2 million or $.57 per diluted share,
before acquisition related charges associated with the third quarter acquisition
of Softimage  Inc., as compared to $9.3 million or $.37 per diluted share in the
fourth quarter of 1997.

For the year ended  December  31, 1998,  revenues  were $482.4  million,  also a
record, versus $471.3 million for 1997. The Company reported record tax-effected
1998 income of $40.1  million or $1.56 per  diluted  share,  before  acquisition
related charges associated with the Softimage acquisition,  as compared to $26.4
million or $1.08 per diluted share for the year ended December 31, 1997.

William J. Miller,  Avid's Chairman and CEO, commented,  "I am pleased to report
record operating results for the fourth quarter.  Our strong revenues  reflected
favorable  domestic  and  European  demand for our film and video  products  and
included  revenues from several key product  releases.  Our audio  products also
experienced  record  revenue  during the fourth  quarter  reflecting  continuing
strong demand for our Pro Tools product line. Additionally, gross margin rose to
a record 62.5% in the quarter."

"We  continued  to  strengthen  our  balance  sheet,"  Miller  added.  "Cash and
investments  increased by $13.5 million  during the fourth  quarter,  to end the
year at $111.8 million.  This largely  reflected strong operating results partly
offset by $10.7 million used to buy back stock as part of our ongoing repurchase
program.  We also reduced accounts  receivable days sales outstanding to 56 days
and  inventory  levels to $11.1 million at year-end."

"This year  reflects  significant  accomplishments  which are critical to Avid's
future success.  The acquisition of Softimage Inc. brought us both 3-D animation
technology  and   SOFTIMAGE|DS,   a  product  and  architecture  for  television
finishing,  which is central to our future. We also formed a strategic  alliance
with  Tektronix,   Inc.  to  provide  broadcasters  with  integrated  end-to-end
solutions as the industry migrates to digital production.  Most importantly,  we
successfully  completed the most  comprehensive  introduction of new products in
Avid's  history.  During the later part of 1998, we launched major new products,
including  Avid  Symphony,  SOFTIMAGE|DS  2.1,  NewsCutter  DV,  Avid Xpress for
Windows NT and ProTools|24 MIX, in all of our key strategic markets. Avid is now
a truly  multi-platform  company  with  products  to  address  the full range of
customer  needs from the consumer to the  high-end  production  studio,"  Miller

The Company  stated that it is not  reporting net income at this time because it
is continuing to evaluate the need for possible  adjustments  to the  in-process
research and development ("IPR&D") charge taken in the third quarter of 1998. At
that time, the Company  recorded a one-time pre-tax charge of $193.7 million for
purchased IPR&D in its operating  results.  This one-time charge was recorded in
accordance with U.S.  generally accepted  accounting  principles and established
industry  practice,  and was supported by an independent  third party valuation.
Since that time,  however,  the Securities and Exchange  Commission  ("SEC") has
expressed views on valuation methods for purchased IPR&D which differ from prior
industry practice.  The Company is working closely with its independent auditors
to make a  determination  as to the application of the SEC's recent views to the
Company's  IPR&D  valuation and the resulting  effect on the charge taken in the
third  quarter  as  well  as on  the  amortization  of  intangible  assets.  Any
application of the methodology now supported by the SEC would likely result in a
significantly  lower IPR&D charge for the third quarter of 1998 and the creation
of goodwill which would be amortized  against earnings  beginning with the third
quarter. An adjustment to the IPR&D valuation, if any, would have no effect upon
the  financial  condition or liquidity of the Company.  The Company will issue a
press release  announcing its final  determination and any resulting  accounting
adjustments.  The  Company  said its fourth  quarter  and fiscal  year-end  1998
operating  results  before  acquisition  related  charges are final and will not

                                    * * * *

Avid Technology, Inc. is an international,  industry-leading provider of digital
audio and video tools for creating  content for  information  and  entertainment
applications.  The  company's  products  are  used  by  customers  ranging  from
corporate  communications  professionals  to film,  television  and  interactive
content producers to broadcast news organizations.  For more information,  visit
Avid's World Wide Web site at www.avid.com.

Avid  and  Softimage  are  registered   trademarks  and  Symphony,   NewsCutter,
SOFTIMAGE|DS, Pro Tools and Avid Xpress are trademarks of Avid Technology, Inc.,
or its subsidiaries or divisions.

 (in thousands, except per share data)

THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, --------------------- ------------------------ 1998 1997 1998 1997 --------------------- ------------------------ (unaudited)(unaudited) (unaudited) Net revenues $144,598 $123,735 $482,377 $471,338 Cost of revenues 54,256 54,062 190,249 221,553 --------------------- ------------------------ Gross profit 90,342 69,673 292,128 249,785 --------------------- ------------------------ Operating expenses: Research and development 25,102 20,160 88,787 73,470 Marketing and selling 36,035 31,301 125,280 120,394 General and administrative 8,618 6,977 28,549 25,808 --------------------- ------------------------ Total operating expenses 69,755 58,438 242,616 219,672 Operating income before acquisition related charges 20,587 11,235 49,512 30,113 Interest and other income, net 1,371 2,244 8,636 8,125 --------------------- ------------------------ Income before acquisition related charges and income taxes 21,958 13,479 58,148 38,238 Provision for income taxes, excluding the effect of acquisition related charges 6,807 4,178 18,026 11,854 --------------------- ------------------------ Tax-effected income before acquisition related charges $15,151 $9,301 $40,122 $26,384 ===================== ======================== Tax-effected income before acquisition related charges per common share - diluted $0.57 $0.37 $1.56 $1.08 ===================== ======================== Weighted average common shares outstanding - diluted 26,703 25,231 25,704 24,325 ===================== ======================== The results above do not include the effects of the third-quarter 1998 pre-tax charge for IPR&D of $193.7 million or the amortization of acquired intangible assets related to the Company's purchase of Softimage Inc. See attached press release for further details.