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AVID TECHNOLOGY, INC.
Avid Technology Park
One Park West
Tewksbury, MA 01876
July 17, 2003
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 17th day of July, 2003.
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): July 17, 2003
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)
Registrant's telephone number, including area code: (978) 640-6789
This is Page 1 of 4 pages
Exhibit Index is on Page 4
Item 9. Regulation FD Disclosure (Information furnished pursuant to Item 12,
"Disclosure of Results of Operations and Financial Condition").
On July 17, 2003, the Registrant announced its financial results for the
quarter ended June 30, 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.
In accordance with the procedural guidance in SEC Release No. 33-8216,
the information in this Form 8-K and the Exhibit attached hereto is being
furnished under "Item 9. Regulation FD Disclosure" rather than under "Item 12.
Disclosure of Results of Operations and Financial Condition." The information
shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the
liabilities of that section, 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: July 17, 2003 AVID TECHNOLOGY, INC.
(Registrant)
By: /s/ Paul Milbury
-----------------
Paul Milbury
Chief Financial Officer
(Principal Financial Officer)
3
EXHIBIT INDEX
Exhibit Description
- ------- -----------
99.1 Press release of the Registrant dated July 17, 2003.
4
Contact: Dean Ridlon Investor Relations Director
Phone: 978.640.5309
Email: Investor_Relations@avid.com
Avid Reports Strong Second Quarter Results
TEWKSBURY, Mass. (July 17, 2003) - Avid Technology, Inc. (Nasdaq: AVID) today
reported strong results for the second quarter ended June 30, 2003. Revenues for
the quarter were $113.3 million versus $106.1 million in the corresponding
quarter in 2002. For the six months ended June 30, 2003, revenues were $225.5
million compared to $198.1 million for the first half of 2002.
Gross margin for the quarter increased to 55.3% compared to 50.4% in the second
quarter of 2002, reflecting the positive impact of a more favorable product mix
as well as currency translation effects. As expected, operating expenses rose
sequentially to $55.1 million for the second quarter, including costs associated
with the company's participation in the National Association of Broadcasters
convention in early April.
Net income for the second quarter was $7.8 million or $.25 per diluted share
compared to net income of $152,000 or $.01 per diluted share for the
corresponding quarter in 2002. Net income for the six-month period ended June
30, 2003 was $13.3 million or $.43 per diluted share compared to a net loss of
$3.5 million or $.14 per share for the same period in 2002.
Avid's cash and marketable securities increased during the second quarter by
$29.0 million, reaching $135.1 million on June 30, 2003.
"We are pleased with our results this quarter on several key fronts," said David
Krall, Avid's president and chief executive officer. "Our increased revenue this
quarter, combined with substantial improvements in gross margins year-over-year,
resulted in our highest level of quarterly net income in almost five years. We
continued to strengthen our balance sheet, with a cash balance that is up $46
million so far this year.
"We also began shipping the first of our new Avid DNA(TM) solutions during the
second quarter: Media Composer(R) Adrenaline(TM) and NewsCutter(R) Adrenaline FX
systems. We shipped over 800 Adrenaline units, delivering unparalleled
performance to our customers.
"In addition to the success of our new product introductions, our broadcast news
business continued to gain momentum in the marketplace. During the quarter, we
received orders for 23 more end-to-end news solutions, bringing our cumulative
total to 110 systems sold or installed over the past two and a half years. With
each successive quarter, we have been widening our lead as the provider of
choice for digital newsroom solutions."
Conference Call
A conference call to discuss Avid's second quarter 2003 financial results and
the company's outlook for the balance of 2003 will be held today, July 17 at
5:00 p.m. ET. The call will be open to the public. The conference call can be
accessed by dialing (719) 457-2629 and referencing confirmation code 576493. 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 March 31, 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(R), Grammy(R),
and Emmy(R) award-winning products and services, please visit: www.avid.com.
(C) 2003 Avid Technology, Inc. All rights reserved. Avid, Adrenaline, Avid DNA,
Film Composer, Media Composer and NewsCutter 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. 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 Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
(unaudited) (unaudited) (unaudited) (unaudited)
Net revenues $113,317 $106,094 $225,494 $198,103
Cost of revenues 50,608 52,591 102,835 100,306
------------ ------------ ------------ ------------
Gross profit 62,709 53,503 122,659 97,797
------------ ------------ ------------ ------------
Operating expenses:
Research and development 21,428 20,411 43,127 40,229
Marketing and selling 27,748 26,775 53,012 49,741
General and administrative 5,617 5,018 10,962 9,531
Restructuring and other costs, net (327) 1,783 (327)
Amortization of acquisition-related intangible assets 341 257 634 603
------------ ------------ ------------ ------------
Total operating expenses 55,134 52,134 109,518 99,777
Operating income (loss) 7,575 1,369 13,141 (1,980)
Interest and other income (expense), net 507 (717) 738 (452)
------------ ------------ ------------ ------------
Income (loss) before income taxes 8,082 652 13,879 (2,432)
Provision for income taxes 300 500 600 1,100
------------ ------------ ------------ ------------
Net income (loss) $7,782 $152 $13,279 ($3,532)
============ ============ ============ ============
Net income (loss) per common share - basic $0.27 $0.01 $0.47 ($0.14)
============ ============ ============ ============
Net income (loss) per common share - diluted $0.25 $0.01 $0.43 ($0.14)
============ ============ ============ ============
Weighted average common shares outstanding - basic 28,494 26,161 28,052 26,095
============ ============ ============ ============
Weighted average common shares outstanding - diluted 31,673 26,511 30,904 26,095
============ ============ ============ ============
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2003 2002
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(unaudited)
Current assets:
Cash and marketable securities $135,066 $89,034
Accounts receivable, net of allowances
of $9,913 and $10,614 at June 30, 2003
and December 31, 2002, respectively 66,963 65,942
Inventories 36,247 38,047
Prepaid and other current assets 13,507 11,919
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Total current assets 251,783 204,942
Property and equipment, net 23,180 25,731
Acquisition-related intangible assets 2,545 2,600
Other assets 2,786 2,530
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Total assets $280,294 $235,803
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $17,434 $24,297
Accrued expenses and other current liabilities 52,733 51,032
Deferred revenue 43,685 35,483
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Total current liabilities 113,852 110,812
Long term liabilities, less current portion 924 1,427
Total stockholders' equity 165,518 123,564
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Total liabilities and stockholders' equity $280,294 $235,803
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