-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DGVwXszcQ3AHvBrQt2Q3mx/FZ69kGbTAE4Dm2+Q5Ht4hk5JcAVY7FFPJtTH4O9YL PM2BQhWdj4IQD7cvVp/M8A== 0000896841-03-000008.txt : 20030416 0000896841-03-000008.hdr.sgml : 20030416 20030416162128 ACCESSION NUMBER: 0000896841-03-000008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030331 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030416 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AVID TECHNOLOGY INC CENTRAL INDEX KEY: 0000896841 STANDARD INDUSTRIAL CLASSIFICATION: PHOTOGRAPHIC EQUIPMENT & SUPPLIES [3861] IRS NUMBER: 042977748 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21174 FILM NUMBER: 03652780 BUSINESS ADDRESS: STREET 1: METROPOLITAN TECHNOLOGY PARK STREET 2: ONE PARK WEST CITY: TEWKSBURY STATE: MA ZIP: 01876 BUSINESS PHONE: 9786406789 MAIL ADDRESS: STREET 1: METROPOLITAN TECHNOLOGY PARK STREET 2: ONE PARK WEST CITY: TEWKSBURY STATE: MA ZIP: 01876 8-K 1 form8k_33103-1qtr.txt FORM 8-K FOR Q1 2003 PRESS RELEASE AVID TECHNOLOGY, INC. Avid Technology Park One Park West Tewksbury, MA 01876 April 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 -------- 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 April, 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): April 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) Registrant's telephone number, including area code: (978) 640-6789 This is Page 1 of 4 pages Exhibit Index is on Page 4 Item 9. Regulation FD Disclosure (Information furnished pursuant to Item 12, "Disclosure of Results of Operations and Financial Condition"). On April 16, 2003, the Registrant announced its financial results for the quarter ended March 31, 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. In accordance with the procedural guidance in SEC Release No. 33-8216, the information in this Form 8-K and the Exhibit attached hereto is being furnished under "Item 9. Regulation FD Disclosure" rather than under "Item 12. Disclosure of Results of Operations and Financial Condition." The information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, 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: April 16, 2003 AVID TECHNOLOGY, INC. (Registrant) By: /s/ Paul Milbury -------------------- Paul Milbury Chief Financial Officer (Principal Financial Officer) 3 EXHIBIT INDEX Exhibit Description ------- ----------- 99.1 Press release of the Registrant dated April 16, 2003. 4 EX-99.1 3 exhibit99-1_33103.txt TEXT OF PRESS RELEASE DATED APRIL 16, 2003 Contact: Dean Ridlon Investor Relations Director Phone: 978.640.5309 Email: Investor_Relations@avid.com Avid Continues Momentum with Strong First Quarter Results TEWKSBURY, Mass. (April 16, 2003) - Avid Technology, Inc. (Nasdaq: AVID) today reported strong results for the first quarter ended March 31, 2003. Revenues for the quarter were $112.2 million versus $92 million in the corresponding quarter in 2002. Gross margin for the quarter was 53.4% compared to 48.1% in the first quarter of 2002 reflecting an improved product mix, reduced materials costs and favorable currency exchange rates. The first quarter 2003 gross margin was Avid's highest since the second quarter of 1999. Net income for the quarter was $5.5 million or $.18 per diluted share compared to a net loss of $3.7 million or $.14 per share for the first quarter of 2002. Included in net income for the first quarter of 2003 were charges of $1.2 million for restructuring activities and $600,000 related to vacating certain real estate. Avid's cash and marketable securities increased during the quarter by over $17 million to $106.2 million at March 31, 2003, nearly double the cash balance from the corresponding quarter in 2002. "We're extremely pleased with our results this quarter and the continuation of the momentum we generated throughout 2002," said David Krall, Avid's president and chief executive officer. "In what is typically Avid's slowest quarter, we increased our gross margins, net income and cash balance. This puts Avid in a solid position to further grow our business and improve our profitability as we begin preparations to ship the brand new, revolutionary product line we announced last week at NAB - the National Association of Broadcasters convention in Las Vegas." While exhibiting at NAB from April 7-10, 2003, Avid unveiled the largest array of new products in the history of its core video business. The company introduced an entirely new nonlinear architecture that combines host-based software editing applications with hardware-based digital nonlinear accelerators (called Avid DNA(TM)) specifically engineered for accelerating media processing. These next-generation solutions offer dramatically increased performance for Avid customers at the high-, mid-, and low-end of its product range, and include: o The Avid(R) DS Nitris(TM) family - Avid's most powerful nonlinear systems to date, capable of delivering real-time effects for up to two streams of 10-bit high-definition media and eight streams of 10-bit uncompressed standard-definition media. o Media Composer(R) Adrenaline(TM) - the fastest, most powerful, compatible and highest-quality Media Composer system ever, designed for time-sensitive production environments and offering unparalleled features, performance and connectivity and the ability to expand to support HD media. o Avid Xpress(R) Pro with Avid Mojo(TM) - a powerful combination of new nonlinear editing software and portable Avid DNA hardware for film and video professionals seeking an affordable, mobile solution that offers true real-time editing for DV media and expandability to support uncompressed standard-definition video. Product introductions at NAB were not solely focused on Avid's core postproduction market. Avid also announced Avid NewsCutter(R) Adrenaline FX and Avid NewsCutter XP with Avid Mojo, two new cutting-edge nonlinear systems for news editing; the Avid Nearchive(TM) system, a first-of-its-kind common media repository that simplifies the process of finding and accessing infrequently used media that would otherwise be stored on analog tapes in library archives; and the MEDIArray(TM) ZX solution, a high-performance, cost-effective 2.88 TB disk storage subsystem representing the newest building block in the Avid Unity(TM) MediaNetwork family of shared-storage and media management solutions. Conference Call A conference call to discuss Avid's first quarter 2003 financial results and the company's outlook for the balance of 2003 will be held tomorrow, April 17 at 8:30 a.m. ET. The call will be open to the public. The conference call can be accessed by dialing (913) 981-5518 and referencing confirmation code 461514. The call and subsequent replay will also be available for a limited time 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-K for the year ended December 31, 2002 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. delivers the solutions that Make, Manage and Move Media(TM). As a recognized digital standard for professionals who Make the world's media -- from video, audio and film to animation, special effects and streaming media -- Avid's products are used to make more television and news shows, commercials, music videos and CDs, corporate/industrial productions and major motion pictures combined than any other nonlinear editing manufacturer in the world. Building on its award-winning heritage, which includes several Emmy(R) awards as well as an Oscar(R) statuette representing the 1998 Scientific and Technical Award for the concept, design and engineering of the Avid Film Composer(R) systems for motion picture editing, Avid is extending its reach by redefining how digital media is shared, stored and distributed. To Manage today's increasingly rich collection of dynamic media, Avid provides powerful servers, networks and media tools to help customers search files, share media and collaborate on new productions, both locally and globally. Avid's solutions also empower users to easily Move media, whether on air, over cable or satellite or through the Internet. Like no other media company today, Avid's end-to-end solutions span the continuum of media creation, management and distribution. The company's corporate headquarters are located in Tewksbury, MA. More information about the company is available at www.avid.com. (C) 2003 Avid Technology, Inc. All rights reserved. Adrenaline, Avid, Avid DNA, Avid Mojo, Avid Unity, Avid Xpress, Make, Manage and Move Media, Media Composer, MEDIArray, Nearchive, NewsCutter, Nitris and Film Composer are either registered trademarks or trademarks of Avid Technology, Inc. in the United States and/or other countries. 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. 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 March 31, ---------------------------- 2003 2002 ----------- ----------- (unaudited) (unaudited) Net revenues $112,177 $92,009 Cost of revenues 52,227 47,715 ----------- ----------- Gross profit 59,950 44,294 ----------- ----------- Operating expenses: Research and development 21,699 19,818 Marketing and selling 25,264 22,966 General and administrative 5,345 4,513 Restructuring and other costs, net 1,783 - Amortization of acquisition-related intangible assets 293 346 ----------- ----------- Total operating expenses 54,384 47,643 ----------- ----------- Operating income (loss) 5,566 (3,349) Interest and other income (expense), net 231 265 ----------- ----------- Income (loss) before income taxes 5,797 (3,084) Provision for income taxes 300 600 ----------- ----------- Net income (loss) $5,497 ($3,684) =========== =========== Net income (loss) per common share - basic $0.20 ($0.14) =========== =========== Net income (loss) per common share - diluted $0.18 ($0.14) =========== =========== Weighted average common shares outstanding - basic 27,604 26,029 =========== =========== Weighted average common shares outstanding - diluted 29,860 26,029 =========== ===========
AVID TECHNOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 31, December 31, 2003 2002 ----------- ----------- (unaudited) ASSETS Current assets: Cash and marketable securities $106,204 $89,034 Accounts receivable, net of allowances of $10,246 and $10,614 at March 31, 2003 and December 31, 2002, respectively 68,386 65,942 Inventories 34,870 38,047 Prepaid and other current assets 14,837 11,919 ----------- ----------- Total current assets 224,297 204,942 Property and equipment, net 24,916 25,731 Acquisition-related intangible assets 2,314 2,600 Other assets 2,598 2,530 ----------- ----------- Total assets $254,125 $235,803 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $17,515 $24,297 Accrued expenses and other current liabilities 51,488 51,032 Deferred revenues 46,809 35,483 ----------- ----------- Total current liabilities 115,812 110,812 Long-term liabilities, less current portion 1,088 1,427 Total stockholders' equity 137,225 123,564 ----------- ----------- Total liabilities and stockholders' equity $254,125 $235,803 =========== =========== -----END PRIVACY-ENHANCED MESSAGE-----