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AVID TECHNOLOGY, INC.
Avid Technology Park
One Park West
Tewksbury, MA 01876
April 16, 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 16th day of April, 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): April 16, 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 April 16, 2003, the Registrant announced its financial results for
the quarter ended March 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.
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: April 16, 2003 AVID TECHNOLOGY, INC.
(Registrant)
By: /s/ Paul Milbury
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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 April 16, 2003.
4
Contact: Dean Ridlon Investor Relations Director
Phone: 978.640.5309
Email: Investor_Relations@avid.com
Avid Continues Momentum with Strong First Quarter Results
TEWKSBURY, Mass. (April 16, 2003) - Avid Technology, Inc. (Nasdaq: AVID) today
reported strong results for the first quarter ended March 31, 2003. Revenues for
the quarter were $112.2 million versus $92 million in the corresponding quarter
in 2002. Gross margin for the quarter was 53.4% compared to 48.1% in the first
quarter of 2002 reflecting an improved product mix, reduced materials costs and
favorable currency exchange rates. The first quarter 2003 gross margin was
Avid's highest since the second quarter of 1999. Net income for the quarter was
$5.5 million or $.18 per diluted share compared to a net loss of $3.7 million or
$.14 per share for the first quarter of 2002. Included in net income for the
first quarter of 2003 were charges of $1.2 million for restructuring activities
and $600,000 related to vacating certain real estate. Avid's cash and marketable
securities increased during the quarter by over $17 million to $106.2 million at
March 31, 2003, nearly double the cash balance from the corresponding quarter in
2002.
"We're extremely pleased with our results this quarter and the continuation of
the momentum we generated throughout 2002," said David Krall, Avid's president
and chief executive officer. "In what is typically Avid's slowest quarter, we
increased our gross margins, net income and cash balance. This puts Avid in a
solid position to further grow our business and improve our profitability as we
begin preparations to ship the brand new, revolutionary product line we
announced last week at NAB - the National Association of Broadcasters convention
in Las Vegas."
While exhibiting at NAB from April 7-10, 2003, Avid unveiled the largest array
of new products in the history of its core video business. The company
introduced an entirely new nonlinear architecture that combines host-based
software editing applications with hardware-based digital nonlinear accelerators
(called Avid DNA(TM)) specifically engineered for accelerating media processing.
These next-generation solutions offer dramatically increased performance for
Avid customers at the high-, mid-, and low-end of its product range, and
include:
o The Avid(R) DS Nitris(TM) family - Avid's most powerful nonlinear systems to
date, capable of delivering real-time effects for up to two streams of 10-bit
high-definition media and eight streams of 10-bit uncompressed
standard-definition media.
o Media Composer(R) Adrenaline(TM) - the fastest, most powerful, compatible and
highest-quality Media Composer system ever, designed for time-sensitive
production environments and offering unparalleled features, performance and
connectivity and the ability to expand to support HD media.
o Avid Xpress(R) Pro with Avid Mojo(TM) - a powerful combination of new
nonlinear editing software and portable Avid DNA hardware for film and video
professionals seeking an affordable, mobile solution that offers true
real-time editing for DV media and expandability to support uncompressed
standard-definition video.
Product introductions at NAB were not solely focused on Avid's core
postproduction market. Avid also announced Avid NewsCutter(R) Adrenaline FX and
Avid NewsCutter XP with Avid Mojo, two new cutting-edge nonlinear systems for
news editing; the Avid Nearchive(TM) system, a first-of-its-kind common media
repository that simplifies the process of finding and accessing infrequently
used media that would otherwise be stored on analog tapes in library archives;
and the MEDIArray(TM) ZX solution, a high-performance, cost-effective 2.88 TB
disk storage subsystem representing the newest building block in the Avid
Unity(TM) MediaNetwork family of shared-storage and media management solutions.
Conference Call
A conference call to discuss Avid's first quarter 2003 financial results and the
company's outlook for the balance of 2003 will be held tomorrow, April 17 at
8:30 a.m. ET. The call will be open to the public. The conference call can be
accessed by dialing (913) 981-5518 and referencing confirmation code 461514. The
call and subsequent replay will also be available for a limited time 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-K for the
year ended December 31, 2002 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. delivers the solutions that Make, Manage and Move
Media(TM). As a recognized digital standard for professionals who Make the
world's media -- from video, audio and film to animation, special effects and
streaming media -- Avid's products are used to make more television and news
shows, commercials, music videos and CDs, corporate/industrial productions and
major motion pictures combined than any other nonlinear editing manufacturer in
the world. Building on its award-winning heritage, which includes several
Emmy(R) awards as well as an Oscar(R) statuette representing the 1998 Scientific
and Technical Award for the concept, design and engineering of the Avid Film
Composer(R) systems for motion picture editing, Avid is extending its reach by
redefining how digital media is shared, stored and distributed. To Manage
today's increasingly rich collection of dynamic media, Avid provides powerful
servers, networks and media tools to help customers search files, share media
and collaborate on new productions, both locally and globally. Avid's solutions
also empower users to easily Move media, whether on air, over cable or satellite
or through the Internet. Like no other media company today, Avid's end-to-end
solutions span the continuum of media creation, management and distribution. The
company's corporate headquarters are located in Tewksbury, MA. More information
about the company is available at www.avid.com.
(C) 2003 Avid Technology, Inc. All rights reserved. Adrenaline, Avid, Avid DNA,
Avid Mojo, Avid Unity, Avid Xpress, Make, Manage and Move Media, Media Composer,
MEDIArray, Nearchive, NewsCutter, Nitris and Film Composer are either registered
trademarks or trademarks of Avid Technology, Inc. in the United States and/or
other countries. 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. 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,
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2003 2002
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(unaudited) (unaudited)
Net revenues $112,177 $92,009
Cost of revenues 52,227 47,715
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Gross profit 59,950 44,294
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Operating expenses:
Research and development 21,699 19,818
Marketing and selling 25,264 22,966
General and administrative 5,345 4,513
Restructuring and other costs, net 1,783 -
Amortization of acquisition-related intangible assets 293 346
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Total operating expenses 54,384 47,643
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Operating income (loss) 5,566 (3,349)
Interest and other income (expense), net 231 265
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Income (loss) before income taxes 5,797 (3,084)
Provision for income taxes 300 600
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Net income (loss) $5,497 ($3,684)
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Net income (loss) per common share - basic $0.20 ($0.14)
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Net income (loss) per common share - diluted $0.18 ($0.14)
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Weighted average common shares outstanding - basic 27,604 26,029
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Weighted average common shares outstanding - diluted 29,860 26,029
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AVID TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2003 2002
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(unaudited)
ASSETS
Current assets:
Cash and marketable securities $106,204 $89,034
Accounts receivable, net of allowances of
$10,246 and $10,614 at March 31, 2003
and December 31, 2002, respectively 68,386 65,942
Inventories 34,870 38,047
Prepaid and other current assets 14,837 11,919
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Total current assets 224,297 204,942
Property and equipment, net 24,916 25,731
Acquisition-related intangible assets 2,314 2,600
Other assets 2,598 2,530
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Total assets $254,125 $235,803
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $17,515 $24,297
Accrued expenses and other current liabilities 51,488 51,032
Deferred revenues 46,809 35,483
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Total current liabilities 115,812 110,812
Long-term liabilities, less current portion 1,088 1,427
Total stockholders' equity 137,225 123,564
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Total liabilities and stockholders' equity $254,125 $235,803
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