Avid Technology lost money in the third quarter, but the company’s stable income and rising margins are good news considering the company’s current time of transition, Avid executives said.
“Given the changes in our executive ranks and the hard work we’re putting in to overhaul some of our operations and processes, we’re pleased with the stability of revenue across our business units, industry sectors and geography,” Interim CEO Nancy Hawthorne said at a conference call with analysts.
Avid reported third quarter revenue of $226.8 million for a loss of $5.9 million, or 14 cents a share.
The company hopes to find a new CEO in the next few months, Hawthorne said, and is also seeking a chief technology officer and a vice president of human resources.
Avid has also undertaken a comprehensive internal review (dubbed “Avid 20/20,” looking back at the company’s 20 years of history and ahead to its next 20 years). That process began in July and has completed its diagnostic phase.
Hawthorne also offered a glimpse at the company’s strategy for its pro video business.
“We believe the key to improving performance in this market segment is to offer complete solutions to larger media enterprises, to make our core editing products easier to integrate into existing installations, and better address the independent creative marketplace,” she said.
Revenue for year so far was $671.1 million, almost identical to the same period in 2006, but the company’s net loss for the first nine months of 2007 was $11.8 million, or 29 cents per share, compared to income of $9.6 million, or 22 cents per share, for the same period in 2006. The 2007 loss includes $45.8 million of amortization, stock-based compensation, restructuring costs, other costs and related tax adjustments, the company said.
