-----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, K5c8ISCFfA2P/Mw9jhcj8ti3mdsyhkyUhrnMbCNdaVPE5SzFIsqV085N/VWLw14/ f7EgoOTnGUmmCGNTsZ1znA== 0000896841-03-000012.txt : 20030717 0000896841-03-000012.hdr.sgml : 20030717 20030717161802 ACCESSION NUMBER: 0000896841-03-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030630 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030717 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: 03791436 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_63003-2qtr.txt PRESS RELEASE OF THE REGISTRANT DATED JULY 17TH AVID TECHNOLOGY, INC. Avid Technology Park One Park West Tewksbury, MA 01876 July 17, 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 17th day of July, 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): July 17, 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 July 17, 2003, the Registrant announced its financial results for the quarter ended June 30, 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: July 17, 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 July 17, 2003. 4 EX-99.1 3 exhibit99-1_63003.txt PRESS RELEASE OF THE REGISTRANT DATED JULY 17TH Contact: Dean Ridlon Investor Relations Director Phone: 978.640.5309 Email: Investor_Relations@avid.com Avid Reports Strong Second Quarter Results TEWKSBURY, Mass. (July 17, 2003) - Avid Technology, Inc. (Nasdaq: AVID) today reported strong results for the second quarter ended June 30, 2003. Revenues for the quarter were $113.3 million versus $106.1 million in the corresponding quarter in 2002. For the six months ended June 30, 2003, revenues were $225.5 million compared to $198.1 million for the first half of 2002. Gross margin for the quarter increased to 55.3% compared to 50.4% in the second quarter of 2002, reflecting the positive impact of a more favorable product mix as well as currency translation effects. As expected, operating expenses rose sequentially to $55.1 million for the second quarter, including costs associated with the company's participation in the National Association of Broadcasters convention in early April. Net income for the second quarter was $7.8 million or $.25 per diluted share compared to net income of $152,000 or $.01 per diluted share for the corresponding quarter in 2002. Net income for the six-month period ended June 30, 2003 was $13.3 million or $.43 per diluted share compared to a net loss of $3.5 million or $.14 per share for the same period in 2002. Avid's cash and marketable securities increased during the second quarter by $29.0 million, reaching $135.1 million on June 30, 2003. "We are pleased with our results this quarter on several key fronts," said David Krall, Avid's president and chief executive officer. "Our increased revenue this quarter, combined with substantial improvements in gross margins year-over-year, resulted in our highest level of quarterly net income in almost five years. We continued to strengthen our balance sheet, with a cash balance that is up $46 million so far this year. "We also began shipping the first of our new Avid DNA(TM) solutions during the second quarter: Media Composer(R) Adrenaline(TM) and NewsCutter(R) Adrenaline FX systems. We shipped over 800 Adrenaline units, delivering unparalleled performance to our customers. "In addition to the success of our new product introductions, our broadcast news business continued to gain momentum in the marketplace. During the quarter, we received orders for 23 more end-to-end news solutions, bringing our cumulative total to 110 systems sold or installed over the past two and a half years. With each successive quarter, we have been widening our lead as the provider of choice for digital newsroom solutions." Conference Call A conference call to discuss Avid's second quarter 2003 financial results and the company's outlook for the balance of 2003 will be held today, July 17 at 5:00 p.m. ET. The call will be open to the public. The conference call can be accessed by dialing (719) 457-2629 and referencing confirmation code 576493. The call and subsequent replay will also be available 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-Q for the quarter ended March 31, 2003 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. is the world leader in digital nonlinear media creation, management and distribution solutions, enabling film, video, audio, animation, games, and broadcast news professionals to work more efficiently, productively and creatively. For more information about the company's Oscar(R), Grammy(R), and Emmy(R) award-winning products and services, please visit: www.avid.com. (C) 2003 Avid Technology, Inc. All rights reserved. Avid, Adrenaline, Avid DNA, Film Composer, Media Composer and NewsCutter are either registered trademarks or trademarks of Avid Technology, Inc. in the United States and/or other countries. Avid received an Oscar statuette representing the 1998 Scientific and Technical Award for the concept, design and engineering of the Avid Film Composer(R) system for motion picture editing. 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. Grammy is a trademark of The National Academy of Recording Arts & Sciences, Inc. 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 Six Months Ended June 30, June 30, -------------------------- -------------------------- 2003 2002 2003 2002 ------------ ------------ ------------ ------------ (unaudited) (unaudited) (unaudited) (unaudited) Net revenues $113,317 $106,094 $225,494 $198,103 Cost of revenues 50,608 52,591 102,835 100,306 ------------ ------------ ------------ ------------ Gross profit 62,709 53,503 122,659 97,797 ------------ ------------ ------------ ------------ Operating expenses: Research and development 21,428 20,411 43,127 40,229 Marketing and selling 27,748 26,775 53,012 49,741 General and administrative 5,617 5,018 10,962 9,531 Restructuring and other costs, net (327) 1,783 (327) Amortization of acquisition-related intangible assets 341 257 634 603 ------------ ------------ ------------ ------------ Total operating expenses 55,134 52,134 109,518 99,777 Operating income (loss) 7,575 1,369 13,141 (1,980) Interest and other income (expense), net 507 (717) 738 (452) ------------ ------------ ------------ ------------ Income (loss) before income taxes 8,082 652 13,879 (2,432) Provision for income taxes 300 500 600 1,100 ------------ ------------ ------------ ------------ Net income (loss) $7,782 $152 $13,279 ($3,532) ============ ============ ============ ============ Net income (loss) per common share - basic $0.27 $0.01 $0.47 ($0.14) ============ ============ ============ ============ Net income (loss) per common share - diluted $0.25 $0.01 $0.43 ($0.14) ============ ============ ============ ============ Weighted average common shares outstanding - basic 28,494 26,161 28,052 26,095 ============ ============ ============ ============ Weighted average common shares outstanding - diluted 31,673 26,511 30,904 26,095 ============ ============ ============ ============
AVID TECHNOLOGY, INC. Condensed Consolidated Balance Sheets (in thousands) June 30, December 31, 2003 2002 ------------- ------------- (unaudited) Current assets: Cash and marketable securities $135,066 $89,034 Accounts receivable, net of allowances of $9,913 and $10,614 at June 30, 2003 and December 31, 2002, respectively 66,963 65,942 Inventories 36,247 38,047 Prepaid and other current assets 13,507 11,919 ------------- ------------- Total current assets 251,783 204,942 Property and equipment, net 23,180 25,731 Acquisition-related intangible assets 2,545 2,600 Other assets 2,786 2,530 ------------- ------------- Total assets $280,294 $235,803 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $17,434 $24,297 Accrued expenses and other current liabilities 52,733 51,032 Deferred revenue 43,685 35,483 ------------- ------------- Total current liabilities 113,852 110,812 Long term liabilities, less current portion 924 1,427 Total stockholders' equity 165,518 123,564 ------------- ------------- Total liabilities and stockholders' equity $280,294 $235,803 ============= ============= -----END PRIVACY-ENHANCED MESSAGE-----