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 13, 2005
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
---------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
/ / Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
/ / Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
/ / Pre-commencement communications pursuant to Rule 14d-2 (b) under the
Exchange Act (17 CFR 240.14d-2(b))
/ / Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On July 13, 2005, Avid Technology, Inc. issued a press release regarding
its preliminary financial results for the quarter ended June 30, 2005. 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.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits
The following exhibit relating to Item 2.02 shall be deemed to be
furnished, and not filed:
99.1 Press Release issued by the Registrant on July 13, 2005.
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 13, 2005 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 issued by the Registrant dated July 13, 2005.
4
Contact: Dean Ridlon, Investor Relations Director
Phone: 978.640.5309
Email: Investor_Relations@avid.com
Avid Provides Preliminary Second Quarter 2005 Results
Tewksbury, MA - July 13, 2005 - Avid Technology, Inc. (Nasdaq: AVID) today
provided its preliminary second quarter financial results. Total revenues for
the quarter ended June 30, 2005, are projected to be in the area of $160
million. Compared to the first quarter of 2005, the sequential decline in
revenue is a result of lower video revenues, primarily due to less broadcast
revenue being recognized and unfavorable foreign currency translation impacts.
"Uncertainty surrounding the timing of customer installation and acceptance of
large deals is an inherent risk factor in our broadcast business," said David
Krall, Avid's president and chief executive officer. "Even though our broadcast
revenues were down sequentially, our broadcast bookings were actually up over
10%. We expect revenues to increase sequentially in the third quarter from the
second quarter, but we anticipate that the combination of continuing unfavorable
foreign currency translation impacts and a delay in shipping Avid(R)
Symphony(TM) Nitris(R) will result in lower than previously expected revenues
for the third quarter."
The lower revenues in the second quarter are expected to result in a gross
margin slightly lower than expected. Operating expenses are projected to be
approximately in line with previous expectations. Taking into account the
lower-than-expected revenue and gross profit, Avid's second quarter GAAP net
income is expected to be in the range of $12.0 to $13.0 million, or $.34 to $.36
per diluted share. Excluding approximately $2.3 million, or $.06 per diluted
share, of acquisition-related amortization and related tax benefits,
acquisition-related stock-based compensation and non-recurring tax benefits,
second quarter non-GAAP net income is expected to be in the range of $14.5 to
$15.5 million, or $.40 to $.42 per diluted share. These projected results are
subject to the normal quarter-end accounting review.
Avid expects to announce its second quarter results on Thursday, July 21, 2005,
after the close of the market. Avid intends to hold a conference call that day
at 5:00 p.m. EDT to discuss the results and provide information about the
company's outlook for the balance of 2005.
The dial-in number is: 312.461.9457
The replay number is: 719.457.0820
The confirmation code
and replay passcode are: 4241723
The call will also be available via live audio Webcast and subsequent replay on
the company's Web site. To listen via this alternative, go to the Investors page
under the Company menu at www.avid.com.
Use of Non-GAAP Financial Measures
The expected pro forma earnings per share listed above are "non-GAAP financial
measures" under the rules of the Securities and Exchange Commission ("SEC"). We
have included this information because we believe it is a meaningful measure of
our normalized operating performance and will assist investors in understanding
our results of operations on a comparative basis. This pro forma information
supplements, and is not intended to represent a measure of performance in
accordance with, disclosures required by generally accepted accounting
principles or GAAP. We use this information internally to help our management
more accurately assess the ongoing nature of our operations and measure our
performance on a comparative basis.
The above release includes a forward-looking statement, as defined by the
Private Securities Litigation Reform Act of 1995, about Avid's expected
financial results. There are a number of factors that could cause actual events
or results to differ materially from that indicated by such forward-looking
statement, such as the competitive market in which Avid operates, market
acceptance of Avid's existing and new products, Avid's ability to anticipate
customers' needs 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, 2004, and other filings with the SEC. 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 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) 2005 Avid Technology, Inc. All rights reserved. Avid, Digidesign, Film
Composer, Nitris, Pro Tools and Symphony are either registered trademarks or
trademarks of Avid Technology, Inc. in the United States and/or other countries.
iNEWS is a registered trademark of iNews, LLC. 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.