Delaware
(State or Other Jurisdiction of
Incorporation or Organization)
|
0-21174
(Commission File Number)
|
04-2977748
(I.R.S. Employer
Identification No.)
|
|||||||
75 Network Drive, Burlington, Massachusetts
(Address of Principal Executive Offices)
|
01803
(Zip Code)
|
||||||||
Registrant's telephone number, including area code: (978) 640-6789
|
|||||||||
________________________________________________
|
|||||||||
(Former Name or Former Address, if Changed Since Last Report)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02.
|
Results of Operations and Financial Condition
|
Item 9.01.
|
Financial Statements and Exhibits
|
(d)
|
Exhibits.
|
||
The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:
|
|||
99.1
|
Press release dated July 21, 2011.
|
||
________________________________________
|
AVID TECHNOLOGY, INC.
|
||||
(Registrant)
|
||||
Date: July 21, 2011
|
By:
|
/s/ Ken Sexton
|
||
Ken Sexton
Executive Vice President, Chief Financial Officer
and Chief Administrative Officer
|
Exhibit No.
|
Description
|
|
*99.1
|
Press release dated July 21, 2011.
|
Contact: | Investor Contact: Tom Fitzsimmons, tom.fitzsimmons@avid.com, 978-640-3346 |
Media Contact: Michele Perry, michele.perry@avid.com , 978-640-5113 | |
AVID TECHNOLOGY, INC.
|
|||||||||
Condensed Consolidated Statements of Operations
|
|||||||||
(unaudited - in thousands, except per share data)
|
|||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30,
|
June 30,
|
||||||||
2011
|
2010
|
2011
|
2010
|
||||||
Net revenues:
|
|||||||||
Products
|
$129,190
|
$134,134
|
$266,525
|
$262,813
|
|||||
Services
|
32,154
|
28,026
|
61,142
|
55,303
|
|||||
Total net revenues
|
161,344
|
162,160
|
327,667
|
318,116
|
|||||
Cost of revenues:
|
|||||||||
Products
|
62,964
|
65,837
|
127,615
|
129,106
|
|||||
Services
|
15,312
|
13,139
|
29,699
|
27,179
|
|||||
Amortization of intangible assets
|
685
|
946
|
1,351
|
1,912
|
|||||
Total cost of revenues
|
78,961
|
79,922
|
158,665
|
158,197
|
|||||
Gross profit
|
82,383
|
82,238
|
169,002
|
159,919
|
|||||
Operating expenses:
|
|||||||||
Research and development
|
30,453
|
30,268
|
60,426
|
60,419
|
|||||
Marketing and selling
|
46,052
|
44,474
|
90,862
|
86,220
|
|||||
General and administrative
|
14,920
|
13,879
|
30,218
|
28,481
|
|||||
Amortization of intangible assets
|
2,161
|
2,417
|
4,306
|
5,274
|
|||||
Restructuring and other (recoveries) costs, net
|
(163)
|
4,007
|
|
(2,379)
|
5,347
|
||||
Loss on sales of assets
|
597
|
-
|
597
|
-
|
|||||
Total operating expenses
|
94,020
|
95,045
|
184,030
|
185,741
|
|||||
Operating loss
|
(11,637)
|
(12,807)
|
(15,028)
|
(25,822)
|
|||||
Interest and other income (expense), net
|
(768)
|
(102)
|
(1,068)
|
(102)
|
|||||
Loss before income taxes
|
(12,405)
|
(12,909)
|
(16,096)
|
(25,924)
|
|||||
(Benefit from) provision for income taxes, net
|
(543)
|
(3)
|
883
|
464
|
|||||
Net loss
|
($11,862)
|
($12,906)
|
($16,979)
|
($26,388)
|
|||||
Net loss per common share - basic and diluted
|
($0.31)
|
($0.34)
|
($0.44)
|
($0.70)
|
|||||
Weighted-average common shares outstanding - basic and diluted
|
38,413
|
37,909
|
38,323
|
37,714
|
AVID TECHNOLOGY, INC.
|
|||||||||||
(unaudited - in thousands, except per share data)
|
|||||||||||
Reconciliations of GAAP financial measures to Non-GAAP financial measures:
|
|||||||||||
Three Months Ended June 30, 2011
|
|||||||||||
Gross
|
Operating
|
Operating
|
Tax
|
Net
|
|||||||
Profit
|
Expenses
|
Loss
|
Benefit
|
Loss
|
|||||||
GAAP
|
$82,383
|
$94,020
|
($11,637)
|
($543)
|
($11,862)
|
||||||
Amortization of intangible assets
|
685
|
(2,161)
|
2,846
|
2,846
|
|||||||
Restructuring recoveries, net
|
163
|
(163)
|
(163)
|
||||||||
Acquisition-related costs (a)
|
(200)
|
200
|
200
|
||||||||
Legal settlement (a)
|
(192)
|
192
|
192
|
||||||||
Loss on sales of assets
|
(597)
|
597
|
597
|
||||||||
Tax adjustment
|
245
|
(245)
|
|||||||||
Stock-based compensation included in:
|
|||||||||||
Cost of products revenues
|
110
|
110
|
110
|
||||||||
Cost of services revenues
|
277
|
277
|
277
|
||||||||
Research and development expenses
|
(427)
|
427
|
427
|
||||||||
Marketing and selling expenses
|
(1,356)
|
1,356
|
1,356
|
||||||||
General and administrative expenses
|
(2,355)
|
2,355
|
2,355
|
||||||||
Non-GAAP
|
$83,455
|
$86,895
|
($3,440)
|
($298)
|
($3,910)
|
||||||
Weighted-average shares outstanding - diluted
|
38,413
|
||||||||||
Non-GAAP net income per share - diluted
|
($0.10)
|
||||||||||
Three Months Ended June 30, 2010
|
|||||||||||
Gross
|
Operating
|
Operating
|
Tax
|
Net
|
|||||||
Profit
|
Expenses |
Loss
|
(Benefit) Provision |
Loss
|
|||||||
GAAP
|
$82,238
|
$95,045
|
($12,807)
|
($3)
|
($12,906)
|
||||||
Amortization of intangible assets
|
946
|
(2,417)
|
3,363
|
3,363
|
|||||||
Restructuring and other costs, net
|
(4,007)
|
4,007
|
4,007
|
||||||||
Acquisition-related costs (a)
|
(83)
|
83
|
83
|
||||||||
Tax adjustment
|
171
|
(171)
|
|||||||||
Stock-based compensation included in:
|
|||||||||||
Cost of products revenues
|
197
|
197
|
197
|
||||||||
Cost of services revenues
|
282
|
282
|
282
|
||||||||
Research and development expenses
|
(547)
|
547
|
547
|
||||||||
Marketing and selling expenses
|
(1,107)
|
1,107
|
1,107
|
||||||||
General and administrative expenses
|
(1,531)
|
1,531
|
1,531
|
||||||||
Non-GAAP
|
$83,663
|
$85,353
|
($1,690)
|
$168
|
($1,960)
|
||||||
Weighted-average shares outstanding - diluted
|
37,909
|
||||||||||
Non-GAAP net loss per share - diluted
|
($0.05)
|
||||||||||
(a)
|
Represents costs included in general and administrative expenses
|
AVID TECHNOLOGY, INC.
|
|||||||||||
(unaudited - in thousands, except per share data)
|
|||||||||||
Reconciliations of GAAP financial measures to Non-GAAP financial measures:
|
|||||||||||
Six Months Ended June 30, 2011
|
|||||||||||
Gross
|
Operating
|
Operating
|
Tax
|
Net
|
|||||||
Profit
|
Expenses
|
Loss
|
Provision
|
Loss
|
|||||||
GAAP
|
$169,002
|
$184,030
|
($15,028)
|
$883
|
($16,979)
|
||||||
Amortization of intangible assets
|
1,351
|
(4,306)
|
5,657
|
5,657
|
|||||||
Restructuring recoveries, net
|
2,379
|
(2,379)
|
(2,379)
|
||||||||
Acquisition-related costs (a)
|
(200)
|
200
|
200
|
||||||||
Legal settlement (a)
|
(192)
|
192
|
192
|
||||||||
Loss on sales of assets
|
(597)
|
597
|
597
|
||||||||
Tax adjustment
|
300
|
(300)
|
|||||||||
Stock-based compensation included in:
|
|||||||||||
Cost of products revenues
|
249
|
249
|
249
|
||||||||
Cost of services revenues
|
545
|
545
|
545
|
||||||||
Research and development expenses
|
(899)
|
899
|
899
|
||||||||
Marketing and selling expenses
|
(2,574)
|
2,574
|
2,574
|
||||||||
General and administrative expenses
|
(3,995)
|
3,995
|
3,995
|
||||||||
Non-GAAP
|
$171,147
|
$173,646
|
($2,499)
|
$1,183
|
($4,750)
|
||||||
Weighted-average shares outstanding - diluted
|
38,323
|
||||||||||
Non-GAAP net income per share - diluted
|
($0.12)
|
||||||||||
Six Months Ended June 30, 2010
|
|||||||||||
Gross
|
Operating
|
Operating
|
Tax
|
Net
|
|||||||
Profit
|
Expenses
|
Loss
|
Provision
|
Loss
|
|||||||
GAAP
|
$159,919
|
$185,741
|
($25,822)
|
$464
|
($26,388)
|
||||||
Amortization of intangible assets
|
1,912
|
(5,274)
|
7,186
|
7,186
|
|||||||
Restructuring and other costs, net (b)
|
(5,347)
|
5,347
|
5,347
|
||||||||
Acquisition-related costs (a)
|
(769)
|
769
|
769
|
||||||||
Tax adjustment
|
455
|
(455)
|
|||||||||
Stock-based compensation included in:
|
|||||||||||
Cost of products revenues
|
386
|
386
|
386
|
||||||||
Cost of services revenues
|
535
|
535
|
535
|
||||||||
Research and development expenses
|
(1,198)
|
1,198
|
1,198
|
||||||||
Marketing and selling expenses
|
(2,075)
|
2,075
|
2,075
|
||||||||
General and administrative expenses
|
(2,792)
|
2,792
|
2,792
|
||||||||
Non-GAAP
|
$162,752
|
$168,286
|
($5,534)
|
$919
|
($6,555)
|
||||||
Weighted-average shares outstanding - diluted
|
37,714
|
||||||||||
Non-GAAP net loss per share - diluted
|
($0.17)
|
||||||||||
(a)
|
Represents costs included in general and administrative expenses
|
||||||||||
(b)
|
Includes costs of $3.7 million related to exiting our former Tewksbury, Massachusetts headquarters lease
|
||||||||||
Revenue Summary:
|
|||||||||||
Three Months Ended | Six Months Ended | ||||||||||
June 30,
|
June 30,
|
||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||
Video revenues
|
$96,262
|
$93,521
|
$190,882
|
$177,874
|
|||||||
Audio revenues
|
65,082
|
68,639
|
136,785
|
140,242
|
|||||||
Total net revenues
|
$161,344
|
$162,160
|
$327,667
|
$318,116
|
AVID TECHNOLOGY, INC.
|
||||
Condensed Consolidated Balance Sheets
|
||||
(unaudited - in thousands)
|
||||
June 30,
|
December 31,
|
|||
2011
|
2010
|
|||
ASSETS:
|
||||
Current assets:
|
||||
Cash and cash equivalents
|
$37,557
|
$42,782
|
||
Accounts receivable, net of allowances of $15,400 and $17,149
|
||||
at June 30, 2011 and December 31, 2010, respectively
|
98,386
|
101,171
|
||
Inventories
|
129,795
|
108,357
|
||
Deferred tax assets, net
|
1,144
|
1,068
|
||
Prepaid expenses
|
7,628
|
7,688
|
||
Other current assets
|
15,622
|
16,130
|
||
Total current assets
|
290,132
|
277,196
|
||
Property and equipment, net
|
59,254
|
62,519
|
||
Intangible assets, net
|
24,625
|
29,750
|
||
Goodwill
|
247,520
|
246,997
|
||
Other assets
|
11,065
|
10,109
|
||
Total assets
|
$632,596
|
$626,571
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY:
|
||||
Current liabilities:
|
||||
Borrowings under revolving credit facilities
|
$13,000
|
$ -
|
||
Accounts payable
|
44,777
|
47,340
|
||
Accrued compensation and benefits
|
31,834
|
41,101
|
||
Accrued expenses and other current liabilities
|
35,560
|
40,986
|
||
Income taxes payable
|
2,801
|
4,640
|
||
Deferred revenues
|
49,341
|
40,585
|
||
Total current liabilities
|
177,313
|
174,652
|
||
Long-term liabilities
|
28,036
|
25,309
|
||
Total liabilities
|
205,349
|
199,961
|
||
Stockholders' equity:
|
||||
Common stock
|
423
|
423
|
||
Additional paid-in capital
|
1,012,348
|
1,005,198
|
||
Accumulated deficit
|
(515,963)
|
(495,254)
|
||
Treasury stock at cost, net of reissuances
|
(84,834)
|
(91,025)
|
||
Accumulated other comprehensive income
|
15,273
|
7,268
|
||
Total stockholders' equity
|
427,247
|
426,610
|
||
Total liabilities and stockholders' equity
|
$632,596
|
$626,571
|
AVID TECHNOLOGY, INC.
|
||||||||||||
Condensed Consolidated Statements of Cash Flows
|
||||||||||||
(unaudited - in thousands)
|
||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||
June 30,
|
June 30,
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net loss
|
($11,862)
|
($12,906)
|
($16,979)
|
($26,388)
|
||||||||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||||||
Depreciation and amortization
|
7,903
|
8,194
|
15,875
|
16,497
|
||||||||
Provision for (recoveries of) doubtful accounts
|
315
|
160
|
459
|
(10)
|
||||||||
Non-cash provision for restructuring
|
-
|
249
|
125
|
249
|
||||||||
Loss on sales of assets
|
597
|
-
|
597
|
-
|
||||||||
Gain on disposal of fixed assets
|
(1)
|
(33)
|
(6)
|
(46)
|
||||||||
Compensation expense from stock grants and options
|
4,525
|
3,664
|
8,262
|
6,986
|
||||||||
Unrealized foreign currency transaction losses (gains)
|
2,705
|
(2,684)
|
6,490
|
(5,248)
|
||||||||
Changes in deferred tax assets and liabilities, excluding initial effects of acquisitions
|
(4)
|
(250)
|
(4)
|
(250)
|
||||||||
Changes in operating assets and liabilities, excluding initial effects of acquisitions:
|
|
|||||||||||
Accounts receivable
|
(2,864)
|
(15,028)
|
2,228
|
(17,521)
|
||||||||
Inventories
|
(4,695)
|
(3,959)
|
(21,438)
|
1,744
|
||||||||
Prepaid expenses and other current assets
|
1,738
|
5,358
|
(208)
|
5,269
|
||||||||
Accounts payable
|
(2,732)
|
18,117
|
(2,625)
|
20,920
|
||||||||
Accrued expenses, compensation and benefits, and other liabilities
|
(2,107)
|
(2,880)
|
(16,246)
|
(18,482)
|
||||||||
Income taxes payable
|
(1,427)
|
(1,172)
|
(2,031)
|
(967)
|
||||||||
Deferred revenues
|
672
|
786
|
11,815
|
8,346
|
||||||||
Net cash used in operating activities
|
(7,237)
|
(2,384)
|
(13,686)
|
(8,901)
|
||||||||
Cash flows from investing activities:
|
||||||||||||
Purchases of property and equipment
|
(2,534)
|
(12,500)
|
(6,078)
|
(22,509)
|
||||||||
(Increase) decrease in other long-term assets
|
(350)
|
(214)
|
(574)
|
67
|
||||||||
Payments for business acquisitions, net of cash acquired
|
-
|
(10,921)
|
-
|
(27,008)
|
||||||||
Purchases of marketable securities
|
-
|
(500)
|
-
|
(2,250)
|
||||||||
Proceeds from sales of marketable securities
|
-
|
1,000
|
|
-
|
19,605
|
|||||||
Net cash used in investing activities
|
(2,884)
|
(23,135)
|
(6,652)
|
(32,095)
|
||||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from (payments related to) the issuance of common stock under employee stock plans, net
|
1,222
|
405
|
1,349
|
(322)
|
||||||||
Proceeds from revolving credit facilities
|
13,000
|
-
|
21,000
|
-
|
||||||||
Payments on revolving credit facilities
|
-
|
-
|
(8,000)
|
-
|
||||||||
Net cash provided by (used in) financing activities
|
14,222
|
405
|
14,349
|
(322)
|
||||||||
Effect of exchange rate changes on cash and cash equivalents
|
236
|
(1,828)
|
764
|
(3,406)
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
4,337
|
(26,942)
|
(5,225)
|
(44,724)
|
||||||||
Cash and cash equivalents at beginning of period
|
33,220
|
73,735
|
42,782
|
91,517
|
||||||||
Cash and cash equivalents at end of period
|
$37,557
|
$46,793
|
$37,557
|
$46,793
|