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 01803
(Address of Principal Executive Offices) (Zip Code)
|
||
(978) 640-6789
(Registrant's Telephone Number, Including Area Code)
|
||
¨
|
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:
|
|||
Exhibit Number
|
Description
|
||
99.1
|
Press release dated February 7, 2012.
|
||
AVID TECHNOLOGY, INC.
|
||||
(Registrant)
|
||||
Date: February 7, 2012
|
By:
|
/s/ Ken Sexton
|
||
Name:
Title:
|
Ken Sexton
Executive Vice President, Chief Financial
Officer and Chief Administrative Officer
|
Exhibit Number
|
Description
|
|
*99.1
|
Press release dated February 7, 2012.
|
AVID TECHNOLOGY, INC.
|
||||||||||||||||
Condensed Consolidated Statements of Operations
|
||||||||||||||||
(unaudited - in thousands, except per share data)
|
||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net revenues:
|
||||||||||||||||
Products
|
$147,971 | $162,863 | $546,371 | $559,907 | ||||||||||||
Services
|
37,333 | 32,484 | 131,565 | 118,615 | ||||||||||||
Total net revenues
|
185,304 | 195,347 | 677,936 | 678,522 | ||||||||||||
Cost of revenues:
|
||||||||||||||||
Products
|
66,221 | 74,458 | 255,735 | 267,985 | ||||||||||||
Services
|
18,137 | 15,117 | 62,482 | 56,490 | ||||||||||||
Amortization of intangible assets
|
657 | 642 | 2,693 | 3,299 | ||||||||||||
Total cost of revenues
|
85,015 | 90,217 | 320,910 | 327,774 | ||||||||||||
Gross profit
|
100,289 | 105,130 | 357,026 | 350,748 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
28,722 | 30,881 | 118,108 | 120,229 | ||||||||||||
Marketing and selling
|
47,592 | 47,759 | 183,865 | 177,178 | ||||||||||||
General and administrative
|
14,393 | 16,166 | 57,851 | 64,345 | ||||||||||||
Amortization of intangible assets
|
2,063 | 2,186 | 8,528 | 9,743 | ||||||||||||
Restructuring and other costs, net
|
8,530 | 14,918 | 8,858 | 20,450 | ||||||||||||
(Gain) loss on sales of assets
|
- | (3,502) | 597 | (5,029) | ||||||||||||
Total operating expenses
|
101,300 | 108,408 | 377,807 | 386,916 | ||||||||||||
Operating loss
|
(1,011) | (3,278) | (20,781) | (36,168) | ||||||||||||
Interest and other income (expense), net
|
(497) | (258) | (2,068) | (390) | ||||||||||||
Loss before income taxes
|
(1,508) | (3,536) | (22,849) | (36,558) | ||||||||||||
(Benefit from) provision for income taxes, net
|
(2,715) | (2,965) | 942 | 396 | ||||||||||||
Net income (loss)
|
$1,207 | ($571) | ($23,791) | ($36,954) | ||||||||||||
Net income (loss) per common share - basic
|
$0.03 | ($0.01) | ($0.62) | ($0.98) | ||||||||||||
Net income (loss) per common share - diluted
|
$0.03 | ($0.01) | ($0.62) | ($0.98) | ||||||||||||
Weighted-average common shares outstanding - basic
|
38,580 | 38,101 | 38,435 | 37,895 | ||||||||||||
Weighted-average common shares outstanding - diluted
|
38,584 | 38,101 | 38,435 | 37,895 |
AVID TECHNOLOGY, INC.
|
||||||||||||||||||||
(unaudited - in thousands, except per share data)
|
||||||||||||||||||||
Reconciliations of GAAP financial measures to Non-GAAP financial measures:
|
||||||||||||||||||||
Three Months Ended December 31, 2011
|
||||||||||||||||||||
Gross
|
Operating
|
Operating
|
Tax
|
Net
|
||||||||||||||||
Profit
|
Expenses
|
(Loss) Income
|
Benefit
|
Income
|
||||||||||||||||
GAAP
|
$100,289 | $101,300 | ($1,011) | ($2,715) | $1,207 | |||||||||||||||
Amortization of intangible assets
|
657 | (2,063) | 2,720 | 2,720 | ||||||||||||||||
Restructuring costs, net
|
(8,530) | 8,530 | 8,530 | |||||||||||||||||
Tax adjustment
|
750 | (750) | ||||||||||||||||||
Stock-based compensation included in:
|
||||||||||||||||||||
Cost of products revenues
|
2 | 2 | 2 | |||||||||||||||||
Cost of services revenues
|
156 | 156 | 156 | |||||||||||||||||
Research and development expenses
|
(300) | 300 | 300 | |||||||||||||||||
Marketing and selling expenses
|
(1,105) | 1,105 | 1,105 | |||||||||||||||||
General and administrative expenses
|
(1,289) | 1,289 | 1,289 | |||||||||||||||||
Non-GAAP
|
$101,104 | $88,013 | $13,091 | ($1,965) | $14,559 | |||||||||||||||
Weighted-average shares outstanding - diluted
|
38,584 | |||||||||||||||||||
Non-GAAP net income per share - diluted
|
$0.38 | |||||||||||||||||||
Three Months Ended December 31, 2010
|
||||||||||||||||||||
Gross
|
Operating
|
Operating
|
Tax
|
Net
|
||||||||||||||||
Profit
|
Expenses
|
(Loss) Income
|
Benefit
|
(Loss) Income
|
||||||||||||||||
GAAP
|
$105,130 | $108,408 | ($3,278) | ($2,965) | ($571) | |||||||||||||||
Amortization of intangible assets
|
642 | (2,186) | 2,828 | 2,828 | ||||||||||||||||
Restructuring and other costs, net
|
(14,918) | 14,918 | 14,918 | |||||||||||||||||
Gain on sales of assets
|
3,502 | (3,502) | (3,502) | |||||||||||||||||
Tax adjustment
|
2,752 | (2,752) | ||||||||||||||||||
Stock-based compensation included in:
|
||||||||||||||||||||
Cost of products revenues
|
162 | 162 | 162 | |||||||||||||||||
Cost of services revenues
|
232 | 232 | 232 | |||||||||||||||||
Research and development expenses
|
(523) | 523 | 523 | |||||||||||||||||
Marketing and selling expenses
|
(956) | 956 | 956 | |||||||||||||||||
General and administrative expenses
|
(1,434) | 1,434 | 1,434 | |||||||||||||||||
Non-GAAP
|
$106,166 | $91,893 | $14,273 | ($213) | $14,228 | |||||||||||||||
Weighted-average shares outstanding - diluted
|
38,182 | |||||||||||||||||||
Non-GAAP net income per share - diluted
|
$0.37 | |||||||||||||||||||
AVID TECHNOLOGY, INC.
|
|||||||||||||||||||||
(unaudited - in thousands, except per share data)
|
|||||||||||||||||||||
Reconciliations of GAAP financial measures to Non-GAAP financial measures:
|
|||||||||||||||||||||
Twelve Months Ended December 31, 2011
|
|||||||||||||||||||||
Gross
|
Operating
|
Operating
|
Tax
|
Net
|
|||||||||||||||||
Profit
|
Expenses
|
(Loss) Income
|
Provision
|
(Loss) Income
|
|||||||||||||||||
GAAP
|
$357,026 | $377,807 | ($20,781) | $942 | ($23,791) | ||||||||||||||||
Amortization of intangible assets
|
2,693 | (8,528) | 11,221 | 11,221 | |||||||||||||||||
Restructuring costs, net
|
(8,858) | 8,858 | 8,858 | ||||||||||||||||||
Legal settlements and acquisition-related costs (a)
|
(555) | 555 | 555 | ||||||||||||||||||
Loss on sales of assets
|
(597) | 597 | 597 | ||||||||||||||||||
Tax adjustment
|
1,865 | (1,865) | |||||||||||||||||||
Stock-based compensation included in:
|
|||||||||||||||||||||
Cost of products revenues
|
419 | 419 | 419 | ||||||||||||||||||
Cost of services revenues
|
764 | 764 | 764 | ||||||||||||||||||
Research and development expenses
|
(1,634) | 1,634 | 1,634 | ||||||||||||||||||
Marketing and selling expenses
|
(4,730) | 4,730 | 4,730 | ||||||||||||||||||
General and administrative expenses
|
(7,072) | 7,072 | 7,072 | ||||||||||||||||||
Non-GAAP
|
$360,902 | $345,833 | $15,069 | $2,807 | $10,194 | ||||||||||||||||
Weighted-average shares outstanding - diluted
|
38,534 | ||||||||||||||||||||
Non-GAAP net income per share - diluted
|
$0.26 | ||||||||||||||||||||
Twelve Months Ended December 31, 2010
|
|||||||||||||||||||||
Gross
|
Operating
|
Operating
|
Tax
|
Net
|
|||||||||||||||||
Profit
|
Expenses
|
(Loss) Income
|
Provision
|
(Loss) Income
|
|||||||||||||||||
GAAP
|
$350,748 | $386,916 | ($36,168) | $396 | ($36,954) | ||||||||||||||||
Amortization of intangible assets
|
3,299 | (9,743) | 13,042 | 13,042 | |||||||||||||||||
Restructuring and other costs, net (b)
|
(20,450) | 20,450 | 20,450 | ||||||||||||||||||
Legal settlement and acquisition-related costs (a)
|
(6,425) | 6,425 | 6,425 | ||||||||||||||||||
Gain on sales of assets
|
4,029 | (4,029) | (4,029) | ||||||||||||||||||
Tax adjustment
|
3,606 | (3,606) | |||||||||||||||||||
Stock-based compensation included in:
|
|||||||||||||||||||||
Cost of products revenues
|
724 | 724 | 724 | ||||||||||||||||||
Cost of services revenues
|
1,054 | 1,054 | 1,054 | ||||||||||||||||||
Research and development expenses
|
(2,227) | 2,227 | 2,227 | ||||||||||||||||||
Marketing and selling expenses
|
(4,109) | 4,109 | 4,109 | ||||||||||||||||||
General and administrative expenses
|
(5,807) | 5,807 | 5,807 | ||||||||||||||||||
Non-GAAP
|
$355,825 | $342,184 | $13,641 | $4,002 | $9,249 | ||||||||||||||||
Weighted-average shares outstanding - diluted
|
37,963 | ||||||||||||||||||||
Non-GAAP net income per share - diluted
|
$0.24 | ||||||||||||||||||||
(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
|
Twelve Months Ended
|
||||||||||||||||||||
December 31,
|
December 31,
|
||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Video revenues
|
$116,229 | $117,793 | $405,471 | $395,853 | |||||||||||||||||
Audio revenues
|
69,075 | 77,554 | 272,465 | 282,669 | |||||||||||||||||
Total net revenues
|
$185,304 | $195,347 | $677,936 | $678,522 | |||||||||||||||||
AVID TECHNOLOGY, INC.
|
||||||||
Condensed Consolidated Balance Sheets
|
||||||||
(unaudited - in thousands)
|
||||||||
December 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
ASSETS:
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$32,855 | $42,782 | ||||||
Accounts receivable, net of allowances of $15,985 and $17,149
|
||||||||
at December 31, 2011 and 2010, respectively
|
104,305 | 101,171 | ||||||
Inventories
|
111,833 | 108,357 | ||||||
Deferred tax assets, net
|
1,480 | 1,068 | ||||||
Prepaid expenses
|
7,652 | 7,688 | ||||||
Other current assets
|
14,509 | 15,701 | ||||||
Total current assets
|
272,634 | 276,767 | ||||||
Property and equipment, net
|
53,487 | 62,519 | ||||||
Intangible assets, net
|
18,524 | 29,750 | ||||||
Goodwill
|
246,398 | 246,997 | ||||||
Other assets
|
11,568 | 10,538 | ||||||
Total assets
|
$602,611 | $626,571 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY:
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$42,533 | $47,340 | ||||||
Accrued compensation and benefits
|
31,350 | 38,686 | ||||||
Accrued expenses and other current liabilities
|
34,174 | 40,986 | ||||||
Income taxes payable
|
3,898 | 4,640 | ||||||
Deferred revenues
|
45,768 | 43,634 | ||||||
Total current liabilities
|
157,723 | 175,286 | ||||||
Long-term liabilities
|
27,885 | 24,675 | ||||||
Total liabilities
|
185,608 | 199,961 | ||||||
Stockholders' equity:
|
||||||||
Common stock
|
423 | 423 | ||||||
Additional paid-in capital
|
1,018,604 | 1,005,198 | ||||||
Accumulated deficit
|
(524,530) | (495,254) | ||||||
Treasury stock at cost, net of reissuances
|
(82,301) | (91,025) | ||||||
Accumulated other comprehensive income
|
4,807 | 7,268 | ||||||
Total stockholders' equity
|
417,003 | 426,610 | ||||||
Total liabilities and stockholders' equity
|
$602,611 | $626,571 |
AVID TECHNOLOGY, INC.
|
||||||||||||||||
Condensed Consolidated Statements of Cash Flows
|
||||||||||||||||
(unaudited - in thousands)
|
||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income (loss)
|
$1,207 | ($571) | ($23,791) | ($36,954) | ||||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
||||||||||||||||
Depreciation and amortization
|
8,445 | 8,454 | 31,983 | 33,480 | ||||||||||||
Provision for doubtful accounts
|
1,028 | (91) | 1,562 | 194 | ||||||||||||
Non-cash provision for restructuring
|
68 | 126 | 326 | 417 | ||||||||||||
(Gain) loss on sales of assets
|
- | (3,502) | 597 | (5,029) | ||||||||||||
Gain on disposal of fixed assets
|
(14) | (8) | (24) | (78) | ||||||||||||
Compensation expense from stock grants and options
|
2,852 | 3,307 | 14,619 | 13,921 | ||||||||||||
Non-cash interest expense
|
73 | 52 | 301 | 52 | ||||||||||||
Unrealized foreign currency transaction (gains) losses
|
(4,123) | 825 | (135) | 1,078 | ||||||||||||
Changes in deferred tax assets and liabilities, excluding initial effects of acquisitions
|
(1,654) | 233 | (1,658) | (1,160) | ||||||||||||
Changes in operating assets and liabilities, excluding initial effects of acquisitions:
|
||||||||||||||||
Accounts receivable
|
(12,479) | (12,111) | (4,905) | (19,313) | ||||||||||||
Inventories
|
14,196 | (12,328) | (3,475) | (27,672) | ||||||||||||
Prepaid expenses and other current assets
|
(1,076) | 2,219 | (298) | 9,251 | ||||||||||||
Accounts payable
|
7,493 | 2,109 | (4,769) | 15,941 | ||||||||||||
Accrued expenses, compensation and benefits, and other liabilities
|
9,806 | 25,737 | (14,323) | 716 | ||||||||||||
Income taxes payable
|
(548) | (621) | (757) | 1,669 | ||||||||||||
Deferred revenues
|
(10,853) | (5,947) | 5,611 | 816 | ||||||||||||
Net cash provided by (used in) operating activities
|
14,421 | 7,883 | 864 | (12,671) | ||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Purchases of property and equipment
|
(1,909) | (2,966) | (10,771) | (28,892) | ||||||||||||
Increase in other long-term assets
|
(130) | (441) | (1,099) | (523) | ||||||||||||
Payments for business acquisitions, net of cash acquired
|
- | - | - | (27,008) | ||||||||||||
Proceeds from sales of assets
|
- | 3,502 | - | 4,502 | ||||||||||||
Purchases of marketable securities
|
- | - | - | (2,250) | ||||||||||||
Proceeds from sales of marketable securities
|
- | - | - | 19,605 | ||||||||||||
Net cash (used in) provided by investing activities
|
(2,039) | 95 | (11,870) | (34,566) | ||||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Proceeds from (payments related to) the issuance of common stock under employee stock plans, net
|
274 | 797 | 2,027 | 736 | ||||||||||||
Proceeds from revolving credit facilities
|
- | 5,000 | 21,000 | 5,000 | ||||||||||||
Payments on revolving credit facilities
|
(13,000) | (5,000) | (21,000) | (5,000) | ||||||||||||
Payments for credit facility issuance costs
|
- | (1,132) | - | (1,132) | ||||||||||||
Net cash (used in) provided by financing activities
|
(12,726) | (335) | 2,027 | (396) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
(453) | 778 | (948) | (1,102) | ||||||||||||
Net (decrease) increase in cash and cash equivalents
|
(797) | 8,421 | (9,927) | (48,735) | ||||||||||||
Cash and cash equivalents at beginning of period
|
33,652 | 34,361 | 42,782 | 91,517 | ||||||||||||
Cash and cash equivalents at end of period
|
$32,855 | $42,782 | $32,855 | $42,782 |