AVID TECHNOLOGY, INC.
Avid Technology Park
One Park West
Tewksbury, MA 01876
October 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 October, 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): October 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) (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 October 16, 2003, the Registrant announced its financial results for
the quarter ended September 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.
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: October 16, 2003 AVID TECHNOLOGY, INC.
(Registrant)
By: /s/Paul Milbury
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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 October 16, 2003.
4
Contact: Dean Ridlon Investor Relations Director
Phone: 978.640.5309
Email: Investor_Relations@avid.com
Avid Reports Strong Revenue and Profit Growth in Third Quarter
TEWKSBURY, Mass. (October 16, 2003) - Avid Technology, Inc. (Nasdaq: AVID) today
reported strong revenue growth and increased profitability for the third quarter
ended September 30, 2003. Revenues for the quarter increased by more than 10
percent to $119.1 million compared to the $107.8 million reported in the
corresponding quarter in 2002. For the nine months ended September 30, 2003,
revenues were $344.6 million, an increase of almost 13 percent compared to
$305.9 million for the first three quarters of 2002.
Net income for the third quarter was $11.8 million or $.35 per diluted share
compared to net income of $2.3 million or $.09 per diluted share for the
corresponding quarter in 2002. Net income for the nine-month period ended
September 30, 2003 was $25.1 million or $.78 per diluted share compared to a net
loss of $1.3 million or $.05 per share for the same period in 2002.
Avid's cash and marketable securities increased during the third quarter by
$36.6 million to $171.6 million on September 30, 2003. Approximately $17 million
of the increase was generated through operations and the balance from employee
stock program activity. Since the beginning of 2003, the company's cash and
marketable securities balance has nearly doubled.
"Our third quarter results are another indicator that our long-term strategy is
paying off," said David Krall, Avid's president and chief executive officer.
"Year-over-year, the combination of our increasing revenue, expanding gross
margins, and cost containment efforts enabled us to generate more than five
times the quarterly net income posted just one year ago. We believe we've put
the essential building blocks in place in all areas of our business to enable
further increases in Avid's revenue and profitability."
Conference Call
A conference call to discuss Avid's third quarter 2003 financial results and the
company's outlook for the fourth quarter of 2003 and full year 2004 will be held
today, October 16 at 5:00 p.m. ET. The call will be open to the public. The
conference call can be accessed by dialing (913) 981-5542 and referencing
confirmation code 770128. 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 June 30, 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 and Film Composer 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(R) 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 Nine Months Ended
September 30, September 30,
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2003 2002 2003 2002
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(unaudited) (unaudited) (unaudited) (unaudited)
Net revenues $119,090 $107,832 $344,584 $305,935
Cost of revenues 52,784 53,222 155,619 153,528
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Gross profit 66,306 54,610 188,965 152,407
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Operating expenses:
Research and development 20,706 20,916 63,833 61,145
Marketing and selling 27,959 25,677 80,971 75,418
General and administrative 5,670 5,454 16,632 14,985
Restructuring and other costs, net 76 1,859 (327)
Amortization of acquisition-related intangible assets 341 257 975 861
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Total operating expenses 54,752 52,304 164,270 152,082
Operating income 11,554 2,306 24,695 325
Interest and other income (expense), net 592 259 1,330 (192)
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Income before income taxes 12,146 2,565 26,025 133
Provision for income taxes 300 300 900 1,400
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Net income (loss) $11,846 $2,265 $25,125 ($1,267)
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Net income (loss) per common share - basic $0.40 $0.09 $0.88 ($0.05)
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Net income (loss) per common share - diluted $0.35 $0.09 $0.78 ($0.05)
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Weighted average common shares outstanding - basic 29,865 26,287 28,663 26,064
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Weighted average common shares outstanding - diluted 33,380 26,550 32,059 26,064
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AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2003 2002
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(unaudited)
ASSETS:
Current assets:
Cash and marketable securities $171,649 $89,034
Accounts receivable, net of allowances of $9,646
and $10,614 at September 30, 2003 and
December 31, 2002, respectively 60,843 65,942
Inventories 38,558 38,047
Prepaid and other current assets 12,166 11,919
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Total current assets 283,216 204,942
Property and equipment, net 22,309 25,731
Acquisition-related intangible assets, net 2,205 2,600
Other assets 2,869 2,530
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Total assets $310,599 $235,803
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $16,477 $24,297
Accrued expenses and other current liabilities 53,789 51,032
Deferred revenues 42,115 35,483
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Total current liabilities 112,381 110,812
Long term liabilities, less current portion 759 1,427
Total stockholders' equity 197,459 123,564
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Total liabilities and stockholders' equity $310,599 $235,803
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