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/ 11.17.2009 12:00PM
Avid Issues Corrected 3Q Results
TEWKSBURY, MASS.: Avid reported third-quarter results today that
reflect corrections on overseas revenues, the company said. The company posted
a net loss of $17.2 million, or 46 cents a share, on revenues of $152.1
million.
The figures represent a decrease in revenues of $1.6 million and of gross
profit by $1.1 million with regard to results reported last month.
“These results reflect corrections of errors identified in its previously
announced investigation concerning the timing of recognition of revenue,” Avid
said in its earnings release. “As a result of these errors, Avid has determined
that it has a material weakness in the design and operating effectiveness of
its controls and procedures in Europe relating to ensuring that revenue is
recognized only after transfer of title and risk of loss to the customer.”
Since the adjustments were related to timing, Avid said the revenue and gross
profit sums would be factored into the fourth quarter.
Avid’s revenues for the three months ending Sept. 30 were down 30 percent
compared to the same period a year ago, though the final net loss figure was
cut by 74 percent.
The year-ago net loss of $66.4 million included an impairment charge of $51.3
million. This year’s net loss included “amortization of intangibles,
stock-based compensation, restructuring charges, loss on asset sales and
related tax adjustments, collectively totaling $17 million,” Avid said.
Excluding those items, non-GAAP net loss was $215,000.
Since these adjustments were related to timing of revenue recognition, and not
amount, the revenue and related gross profit will be recognized in the fourth
quarter of 2009. Additionally, income taxes were reduced by $0.1 million.
Avid reported cash, equivalents and “marketable securities” of $103 million at
the close of the quarter. Long-term liabilities totaled $13.3 million.
More on Avid:
October
29, 2009: “Avid’s Kovalick Awarded
SMPTE Sarnoff Medal”
Al Kovalick, enterprise product strategist at Avid, received the SMPTE 2009
David Sarnoff Medal for his contributions to the advancement of file-based
video storage, playback and interchange for use in television production.
July 27, 2009: “Avid Loss Widens in 2Q”
Avid Technology posted a loss for the second quarter that exceeded analyst
expectations. The company reported a net loss of $15.9 million, or 43 cents a
share, on revenues of $150.5 million for the three months ending June 30.
May 24, 2009: “Street
Smiles on Avid”
Shares of Avid Technology were elevated in today’s trading on an assessment
that the adoption of HDTV would accelerate in 2010. JPMorgan deemed the stock
overweight, or having greater value than other stocks in the same sector.
April 24, 2009: “Avid
Narrows 1Q Loss”
Avid posted revenues of $151.6 million for the three months ending March
31, 2009, compared to $198.3 million for the same period in 2008. Net loss for
the quarter was $17.3 million compared to $21.1 million.
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Sunday 12:00AM
EBU Pushes Hybrid Broadcast/Broadband TV
“Underlying this co-operation is the shared conviction that... only a flexible, cross-border approach will make it happen quickly.” ~ Ingrid Deltenre