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.