Avid CEO Switch: Greenfield Out, Hernandez In
Greenfield remains on the board
February 11, 2013
today announced that its board of directors appointed Louis Hernandez as
president and CEO, effective today. Hernandez succeeds Gary Greenfield, who
will remain on Avid’s board of directors. Hernandez has been a member of the
Avid board since 2008. Most recently, he was also chairman of the board and CEO
of Open Solutions, Inc., a technology provider to financial institutions
worldwide, which was acquired in January 2013 by Fiserv, Inc.
Greenfield, pictured left, took the reins of Avid in early 2008 under growing pressure from
desktop editing platforms such as Apple’s Final Cut Pro. Revenues that year
slipped to $845 million from $930 million in 2007. They slipped precipitously
in 2009 to $629 million, then showed some recovery in 2010, reaching nearly
$680 million. Revenues for 2011 were reported at $677 million. The company has
reported a net loss each year since 2006, though progressively smaller during
Greenfield’s tenure, from $198 million in 2008 to nearly $21 million in 2011.
Avid’s 2012 earnings call is scheduled for Feb. 26, 2013. It will include the
impact of Avid selling off it’s consumer audio/video business for $17 million
over the summer. The divestiture was part of the company’s strategic plan to
focus its resources on the professional market. The consumer line included Avid
Studio, Pinnacle Studio and the Avid Studio App. Avid paid $462 million for
Pinnacle in 2005. The consumer business contributed around $91 million to Avid’s
2011 revenues. A restructuring charge between $19 million and $23 million was
As of Sept. 30, 2012, Avid had
no long-term debt
( correction, the below commenter is correct. Avid reported long-term liabilities of $36.6 million) and cash and equivalents of
$71 million. Shares of Avid (NASDAQ: AVID) gained about 2 percent this morning
to trade at $7.70.
~ Deborah D. McAdams
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