8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): March 17, 2015

AVID TECHNOLOGY, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	1-36254	04-2977748
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

⎕ 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 7.01 Regulation FD Disclosure

On March 17, 2015, Avid Technology Inc. (the “Company”) made a presentation on revenue modeling available on its website (“Presentation”). The Presentation also included additional detail on the Company's 2015 guidance. Furnished herewith as Exhibit 99.1 is the Presentation and as Exhibit 99.2 the written script for the Presentation (“Script”).

Limitation on Incorporation by Reference. The information furnished in this Item 7.01 and the exhibits relating thereto, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Cautionary Note Regarding Forward-Looking Statements.Except for historical information contained in this Form 8-K, the Presentation and the Script attached as Exhibits 99.1 and 99.2 hereto, the Form 8-K, Presentation and Script contain forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Please refer to the cautionary notes in the Presentation regarding these forward-looking statements.

Item 9.01.  Financial Statements and Exhibits.

The following exhibits relating to Item 7.01 shall be deemed to be furnished, and not filed:

(d)                   Exhibits.

Exhibit Number	Description
99.1*	Presentation on Revenue Modeling (March 17, 2015)
99.2*	Written Script for the Presentation (March 17, 2015)

[*Document furnished herewith]

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.

	AVID TECHNOLOGY, INC.
	(Registrant)
Date: March 17, 2015	By:/s/ John W. Frederick Name:  John W. Frederick Title:    Executive Vice President, Chief Financial Officer and Chief Administrative Officer

EX-99.1

EX-99.2

Script used for Avid’s Revenue Model presentation (“Presentation”) posted on Avid Technology, Inc.’s

website March 17, 2015 and filed with the SEC as exhibit 99.1 to the Form 8-K on March 18, 2015.

This script should only be reviewed together with the Presentation

Exhibit 99.2

Cover page

Hi, I’m Tony Callini, Senior Vice President of Finance here at Avid. We‘ve spent a lot of time meeting with investors recently and a recurring request was assistance in understanding how to build a revenue model for Avid based on our new revenue accounting methodology and the residual impact of the restatement. We’ve prepared this brief presentation to assist you in your modeling.

So let’s begin.

Slide 2

First, I’d like to remind you that this presentation includes forward looking statements with inherent risks and uncertainties. We’ve also included illustrative examples in this presentation for periods after 2015 which should NOT be considered guidance. We have provided specific financial guidance for 2015 as part of our investor communications following the filing of our 2014 10-K.

Please review that 10-K filed with the SEC for other risk factors and other items which could adversely impact our business.

Slide 3

I thought it would be helpful to show pictorially the number of ways that transactions end up reflected as revenue. This is a good way to see how the impact of the restatement is still being reflected in our reported revenue.

Slide 4

At the bottom of the slide, you’ll see a box in the lower left hand corner - this represents transactions from pre-2011 that are amortizing into revenue, in declining amounts, over time. This reflects those transactions that were initiated before the change in accounting rules… where approximately 70% of every dollar was deferred and amortized over some period of time. The good news is that the rules changed in 2011 and now we are able to recognize more revenue up front. The other piece of good news is that since there are no new transactions being added, the amortization is effectively fixed and will amortize out in a fixed schedule. We’ve included this amortization schedule in the supplemental tables of our recent press release announcing our results for the fourth quarter of 2014.

Slide 5

As a reminder, bookings represent the total amount of revenue we expect to earn over the term of an agreement between Avid and a customer. A more fulsome definition of bookings is included in the appendix of this presentation.

When we book an order with a customer, one of three things can happen:

Slide 6

First, it could be recorded directly to revenue after shipment & invoicing. A good example would be products booked and shipped in the same period that are considered non-software - such as our storage offerings and audio consoles or professional services delivered within the same period the booking occurs.

Slide 7

Next, it can be booked, delivered and invoiced all in the same period, but due to the accounting treatment be deferred and amortized into revenue over time. This would be similar to the treatment of the pre-2011 revenue, except… now we are deferring materially less as a result of the accounting change in 2011. This is also rec

1

Script used for Avid’s Revenue Model presentation (“Presentation”) posted on Avid Technology, Inc.’s

website March 17, 2015 and filed with the SEC as exhibit 99.1 to the Form 8-K on March 18, 2015.

This script should only be reviewed together with the Presentation

ognized in a fairly fixed amortization schedule… however, new amounts are being added to the total deferral each period.

Slide 8

Finally, for bookings which are neither shipped, delivered nor invoiced in the period, it will be recorded in backlog. Once it’s delivered and invoiced, it will either be recognized as revenue or move to deferred revenue dependent on our revenue recognition practices.

I’d like to stress that the amount that goes to each of these 3 buckets is heavily dependent upon the mix of products and services sold within any given period. Also, the split among these buckets could change if we adopt new business practices such as discontinuing software updates with implied PCS for particular products.

Slide 9

This table reflects our total revenue backlog, including deferred revenue as of December 31, 2014. It also lays out how we believe this will be recognized into revenue over time. This same data is included in the schedules to our Q4 2014 earnings release.

Slide 10

The revenue backlog on December 31, 2014 was $540 million of which $415 million was deferred revenue and $125 million was backlog.

Slide 11

As discussed earlier, the pre-2011 deferred revenue amortization will burn off by 2017. The amortization is fairly set and should not change materially from what you see here. We highlight the pre-2011 transactions separately from the rest of deferred revenue because of the accounting change on January 1, 2011 which resulted in a much different treatment for transactions entered into before 2011 than how we treat transactions today. Again, about 70% of invoiced amounts was deferred on average pre-2011 as compared to about 30% today.

Slide 12

The post-2010 deferred revenue amortization reflects the expected timing of revenue recognition of those transactions entered into after 2010. Again, this schedule should not significantly change going forward…. Unless we have a material shift in business practices such as discontinuing software updates with implied PCS for particular products. This specific change would end up accelerating revenue into the period that we make that change.

Slide 13

The final scheduled piece is backlog, which is comprised of un-invoiced annual and multi-year support contracts, undelivered professional services and products which have not yet been shipped. We have provided a best estimate of how this backlog is expected to translate to revenue over the next few years. However, unlike the deferred revenue, which will amortize on a fairly fixed schedule, backlog will convert to revenue as those products and services are delivered and the appropriate accounting is applied. As mentioned, this is our current best estimate, but is subject to change based on actual operational execution.

Slide 14

With the amortization of backlog and deferred revenue as of December 31, 2014 as a starting point, we then can model current year revenue using a combination of this revenue backlog roll-in and applying a revenue conversion rate to current years’ bookings. This fairly simple model demonstrates how one might estimate revenue for any given period.

2

Script used for Avid’s Revenue Model presentation (“Presentation”) posted on Avid Technology, Inc.’s

website March 17, 2015 and filed with the SEC as exhibit 99.1 to the Form 8-K on March 18, 2015.

This script should only be reviewed together with the Presentation

Slide 15

First, we have disclosed how the revenue backlog should amortize over time. While this amortization is subject to future changes- especially the backlog portion -we believe the table at the top of the chart is a reasonable assumption to use for your models.

Slide 16

Next, you need to determine your estimate of bookings and the percent of those bookings which will convert to revenue during the current period. We have provided the assumptions we used to determine our 2015 revenue guidance as a starting point. Currently, we anticipate between about 46 and 47% of 2015 bookings will convert to revenue during this year. The remaining amount will either be invoiced and go to deferred revenue or be scheduled to be delivered in a future period and be reflected as backlog. That deferred revenue and backlog will then be recognized in future periods

Slide 17

The sum of the revenue backlog roll-in and revenue conversion of current year bookings reflects what we think is a reasonable model for total revenue in a given year.

Slide 18

As an illustrative example, I’ll walk through the model using the high-end of our 2015 bookings guidance.

First, approximately $289 million of revenue for 2015 will roll in from beginning revenue backlog.

Then, using the high end of the 2015 bookings range, we apply an assumed conversion rate to those bookings and estimate how much revenue in 2015 will be directly generated from 2015 bookings. This conversion rate is based on our current projected mix, but is certainly subject to fluctuation as that mix changes. Therefore, the sum of the revenue roll-in from beginning revenue backlog and the conversion of 2015 bookings into current year revenue equal the high end of the 2015 revenue guidance.

Slide 19

We’ve also included two charts to demonstrate how the composition of our revenue is evolving.

Slide 20

In the chart on the left, we show the dollar composition of 2014 actual revenue and 2015 high end of guidance. You’ll note that even though the pre-2011 revenue is declining by $33 million, our total revenue is expected to increase. This is because we are getting a larger contribution from post-2010 deferred revenue as well as revenue rolling in from backlog and revenue provided through current bookings.

Slide 21

This evolution is further demonstrated in the pie charts, where you can see in 2014, pre-2011 revenue made up 17% of our overall revenue whereas in the 2015 guidance, it’s expected to make up about 11%.

One other important point, is that both the pre-2011 and post-2010 deferred revenue is being amortized into revenue at 100% margin, while the backlog and current year bookings conversion will carry a traditional cost of revenue with them. This is important, because the growth in the post-2010 deferred revenue amortization helps to offset the impact of declining pre-2011 revenue both on a top line and a margin basis. The improving margin quality of our book of business helps to offset the remaining margin pressure from the declining pre-2011 revenue.

Slide 22

Thus far, we have talked about modeling for 2015, but we understand that building a meaningful longer term model is just as important. The key to this model revolves around assumptions for annual bookings growth and

3

Script used for Avid’s Revenue Model presentation (“Presentation”) posted on Avid Technology, Inc.’s

website March 17, 2015 and filed with the SEC as exhibit 99.1 to the Form 8-K on March 18, 2015.

This script should only be reviewed together with the Presentation

assumptions for how that bookings will convert to revenue over time. Please keep in mind that this model is purely illustrative and intended to demonstrate how a model might work as opposed to providing actual guidance for future periods.

Slide 23

Currently, we anticipate bookings closed within a given year will generally convert to revenue over a five year period using the conversion rates presented. These ratios are subject to change based on mix of product and services sold, timing of backlog and potential changes to our business practice related to implied PCS included in software updates. We anticipate providing updated conversion rate guidance annually or as any significant changes are identified.

Slide 24

From there, you would simply start with the known roll in of revenue from backlog and deferred revenue as of December 31, 2014. As a reminder, we disclose this information in our supplemental schedules to our Q4 2014 earnings release.

Slide 25

Next, you would apply those booking conversion rates we just discussed to both current year and future year bookings and create a waterfall schedule reflecting the expected timing of future revenue. Again, these ratios will change based on mix of business, timing of backlog build and any changes to our business practice that impact our revenue accounting treatment. The other variable is obviously assumption around future bookings growth. Illustratively, for purposes of presenting a working model, we used an annual growth rate of 5%. Again, this does not reflect our expectations of future growth, but is merely illustrative for purposes of this exercise to mechanically demonstrate how a model might work. To be clear, we have not and are not, providing guidance for any periods outside of 2015.

Slide 26

I hope you have found this overview helpful. We have also provided a more a more fulsome definition in the appendix of bookings and revenue backlog for your information.

If you would like to discuss this model further, please do not hesitate to contact Tom Fitzsimmons who leads our Investor Relations team.

This concludes our presentation.

Thank-you.

4

EX-99.3

Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Avid Revenue Model March 17, 2015

2 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Safe Harbor The information provided in this presentation and the accompanying slides includes forward-looking statements that involve risks and uncertainties, including statements about our anticipated plans, objectives, expectations and intentions. Such statements include, without limitation, statements regarding our recently filed financial statements or other information included herein based upon or otherwise incorporating judgments or estimates relating to future performance such as future earnings, bookings, backlog, bookings conversion rate and timing of revenue recognition and amortization, product mix and free cash flow; our future strategy and business plans; our product plans, including products under development, such as Avid Everywhere. These forward-looking statements are based on expectations as of March 17, 2015 and subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including but not limited to the effect on our sales, operations and financial performance resulting from; our liquidity; our ability to execute our strategic plan (including cost savings initiatives), and meet customer needs; our ability to produce innovative products in response to changing market demand, particularly in the media industry; our ability to successfully accomplish our product development plans; competitive factors; history of losses; fluctuations in our revenue, based on, among other things, our performance and risks in particular geographies or markets, fluctuations in foreign currency exchange rates and seasonal factors; adverse changes in economic conditions; variances in our backlog and the realization thereof; the identified material weaknesses in our internal control over financial reporting; the previously disclosed ongoing SEC and Department of Justice inquiries; pending litigation, including the previously disclosed class action and possibility of further legal proceedings adverse to our company resulting from the restatement or related matters; the costs associated with the restatement. Moreover, the business may be adversely affected by future legislative, regulatory or changes, including tax law changes, as well as other economic, business and/or competitive factors. The risks included above are not exhaustive. Other factors that could adversely affect our business and prospects are described in the filings made by our company with the SEC. We expressly disclaim any obligation or undertaking to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. For an explanation of the operational metrics used herein, please see our previous filings with the SEC, including our current reports on Form 8-K filed on March 16, 2015 and the exhibits thereto.

3 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Book, Ship, Invoice, Recognize Invoiced and amortized over time Residual non-cash revenue from pre-2011 transactions Current Bookings Deferred Revenue (pre-2011) Revenue Backlog Deferred Revenue (post -2010) Reported Revenue The ratio of revenue vs backlog/deferred revenue is heavily product mix dependent Revenue Model

4 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Book, Ship, Invoice, Recognize Invoiced and amortized over time Residual non-cash revenue from pre-2011 transactions Current Bookings Deferred Revenue (pre-2011) Revenue Backlog Deferred Revenue (post -2010) Reported Revenue The ratio of revenue vs backlog/deferred revenue is heavily product mix dependent Revenue Model

5 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Book, Ship, Invoice, Recognize Invoiced and amortized over time Residual non-cash revenue from pre-2011 transactions Current Bookings Deferred Revenue (pre-2011) Revenue Backlog Deferred Revenue (post -2010) Reported Revenue The ratio of revenue vs backlog/deferred revenue is heavily product mix dependent Revenue Model

6 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Book, Ship, Invoice, Recognize Invoiced and amortized over time Residual non-cash revenue from pre-2011 transactions Current Bookings Deferred Revenue (pre-2011) Revenue Backlog Deferred Revenue (post -2010) Reported Revenue The ratio of revenue vs backlog/deferred revenue is heavily product mix dependent Revenue Model

7 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Book, Ship, Invoice, Recognize Invoiced and amortized over time Residual non-cash revenue from pre-2011 transactions Current Bookings Deferred Revenue (pre-2011) Revenue Backlog Deferred Revenue (post-2010) Reported Revenue The ratio of revenue vs backlog/deferred revenue is heavily product mix dependent Revenue Model

8 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Book, Ship, Invoice, Recognize Invoiced and amortized over time Residual non-cash revenue from pre-2011 transactions Current Bookings Deferred Revenue (pre-2011) Revenue Backlog Deferred Revenue (post -2010) Reported Revenue The ratio of revenue vs backlog/deferred revenue is heavily product mix dependent Revenue Model

9 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Backlog* as of December 31, 2014 Software revenue accounting rules changed on January 1, 2011  New rules allow for unbundling of multiple element arrangements  Resulted in less deferral of revenue Amortization of deferred revenue relatively fixed  Business practice changes could impact timing of future revenue Backlog reflects bookings that have not yet been invoiced. For example:  Products not yet shipped  Professional services not yet delivered  Future years of multi-year support contracts *See appendix for full definition of revenue backlog. Note: Current estimates could change based on a number of factors, including (i) the timing of delivery of products and services, (ii) customer cancellations or change orders, or (iii) changes in the estimated period of time Implied Maintenance Release PCS is provided to customers. $M Dec 31, 2014 Rev Backlog 2015 2016 2017 2018 2019> Pre-2011 Deferred Revenue 85 $ 59 $ 25 $ 1 $ 0 $ - $ Post-2010 Deferred Revenue 330 147 98 50 25 11 Deferred Revenue 415 206 122 51 25 11 Backlog 125 83 28 12 1 1 Total Revenue Backlog 540 $ 289 $ 151 $ 62 $ 26 $ 12 $ Expected Revenue Amortization Timing

10 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. *See appendix for full definition of revenue backlog. Note: Current estimates could change based on a number of factors, including (i) the timing of delivery of products and services, (ii) customer cancellations or change orders, or (iii) changes in the estimated period of time Implied Maintenance Release PCS is provided to customers. Software revenue accounting rules changed on January 1, 2011  New rules allow for unbundling of multiple element arrangements  Resulted in less deferral of revenue Amortization of deferred revenue relatively fixed  Business practice changes could impact timing of future revenue Backlog reflects bookings that have not yet been invoiced. For example:  Products not yet shipped  Professional services not yet delivered  Future years of multi-year support contracts Revenue Backlog* as of December 31, 2014 $M Dec 31, 2014 Rev Backlog 2015 2016 2017 2018 2019> Pre-2011 Deferred Revenue 85 $ 59 $ 25 $ 1 $ 0 $ - $ Post-2010 Deferred Revenue 330 147 98 50 25 11 Deferred Revenue 415 206 122 51 25 11 Backlog 125 83 28 12 1 1 Total Revenue Backlog 540 $ 289 $ 151 $ 62 $ 26 $ 12 $ Expected Revenue Amortization Timing

11 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Backlog* as of December 31, 2014 *See appendix for full definition of revenue backlog. Note: Current estimates could change based on a number of factors, including (i) the timing of delivery of products and services, (ii) customer cancellations or change orders, or (iii) changes in the estimated period of time Implied Maintenance Release PCS is provided to customers. Software revenue accounting rules changed on January 1, 2011  New rules allow for unbundling of multiple element arrangements  Resulted in less deferral of revenue Amortization of deferred revenue relatively fixed  Business practice changes could impact timing of future revenue Backlog reflects bookings that have not yet been invoiced. For example:  Products not yet shipped  Professional services not yet delivered  Future years of multi-year support contracts $M Dec 31, 2014 Rev Backlog 2015 2016 2017 2018 2019> Pre-2011 Deferred Revenue 85 $ 59 $ 25 $ 1 $ 0 $ - $ Post-2010 Deferred Revenue 330 147 98 50 25 11 Deferred Revenue 415 206 122 51 25 11 Backlog 125 83 28 12 1 1 Total Revenue Backlog 540 $ 289 $ 151 $ 62 $ 26 $ 12 $ Expected Revenue Amortization Timing

12 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Backlog* as of December 31, 2014 *See appendix for full definition of revenue backlog. Note: Current estimates could change based on a number of factors, including (i) the timing of delivery of products and services, (ii) customer cancellations or change orders, or (iii) changes in the estimated period of time Implied Maintenance Release PCS is provided to customers. Software revenue accounting rules changed on January 1, 2011  New rules allow for unbundling of multiple element arrangements  Resulted in less deferral of revenue Amortization of deferred revenue relatively fixed  Business practice changes could impact timing of future revenue Backlog reflects bookings that have not yet been invoiced. For example:  Products not yet shipped  Professional services not yet delivered  Future years of multi-year support contracts $M Dec 31, 2014 Rev Backlog 2015 2016 2017 2018 2019> Pre-2011 Deferred Revenue 85 $ 59 $ 25 $ 1 $ 0 $ - $ Post-2010 Deferred Revenue 330 147 98 50 25 11 Deferred Revenue 415 206 122 51 25 11 Backlog 125 83 28 12 1 1 Total Revenue Backlog 540 $ 289 $ 151 $ 62 $ 26 $ 12 $ Expected Revenue Amortization Timing

13 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Backlog* as of December 31, 2014 *See appendix for full definition of revenue backlog. Note: Current estimates could change based on a number of factors, including (i) the timing of delivery of products and services, (ii) customer cancellations or change orders, or (iii) changes in the estimated period of time Implied Maintenance Release PCS is provided to customers. Software revenue accounting rules changed on January 1, 2011  New rules allow for unbundling of multiple element arrangements  Resulted in less deferral of revenue Amortization of deferred revenue relatively fixed  Business practice changes could impact timing of future revenue Backlog reflects bookings that have not yet been invoiced. For example:  Products not yet shipped  Professional services not yet delivered  Future years of multi-year support contracts $M Dec 31, 2014 Rev Backlog 2015 2016 2017 2018 2019> Pre-2011 Deferred Revenue 85 $ 59 $ 25 $ 1 $ 0 $ - $ Post-2010 Deferred Revenue 330 147 98 50 25 11 Deferred Revenue 415 206 122 51 25 11 Backlog 125 83 28 12 1 1 Total Revenue Backlog 540 $ 289 $ 151 $ 62 $ 26 $ 12 $ Expected Revenue Amortization Timing

14 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Conversion Model ($M) Revenue Backlog Amortization is baseline of revenue model Bookings conversion is impacted by mix of products (for example):  Software versus non-software  Annual versus multi-year contracts  Subscription & Cloud Adoption Revenue = Revenue backlog amortization + Current period bookings conversion 2014 Low High Pre-2011 Amortization $92 $59 $59 Post -2010 Amortization 127 147 147 Backlog 37 83 83 Revenue Backlog Amortization $256 $289 $289 Bookings $519 $524 $545 Growth Guidance * 1% 5% Bookings Conversion Rate 52.8% 46% 47% Revenue from Current Year Bookings $274 $241 $257 Revenue $530 $530 $546 Year-on-Year Growth 0% 3% 2015 * - Bookings Growth presented on a Constant Dollar Basis

15 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Conversion Model ($M) Revenue Backlog Amortization is baseline of revenue model Bookings conversion is impacted by mix of products (for example):  Software versus non-software  Annual versus multi-year contracts  Subscription & Cloud Adoption Revenue = Revenue backlog amortization + Current period bookings conversion 2014 Low High Pre-2011 Amortization $92 $59 $59 Post -2010 Amortization 127 147 147 Backlog 37 83 83 Revenue Backlog Amortization $256 $289 $289 Bookings $519 $524 $545 Growth Guidance * 1% 5% Bookings Conversion Rate 52.8% 46% 47% Revenue from Current Year Bookings $274 $241 $257 Revenue $530 $530 $546 Year-on-Year Growth 0% 3% 2015 * - Bookings Growth presented on a Constant Dollar Basis

16 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Conversion Model ($M) Revenue Backlog Amortization is baseline of revenue model Bookings conversion is impacted by mix of products (for example):  Software versus non-software  Annual versus multi-year contracts  Subscription & Cloud Adoption Revenue = Revenue backlog amortization + Current period bookings conversion 2014 Low High Pre-2011 Amortization $92 $59 $59 Post -2010 Amortization 127 147 147 Backlog 37 83 83 Revenue Backlog Amortization $256 $289 $289 Bookings $519 $524 $545 Growth Guidance * 1% 5% Bookings Conversion Rate 52.8% 46% 47% Revenue from Current Year Bookings $274 $241 $257 Revenue $530 $530 $546 Year-on-Year Growth 0% 3% 2015 * - Bookings Growth presented on a Constant Dollar Basis

17 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Conversion Model ($M) Revenue Backlog Amortization is baseline of revenue model Bookings conversion is impacted by mix of products (for example):  Software versus non-software  Annual versus multi-year contracts  Subscription & Cloud Adoption Revenue = Revenue backlog amortization + Current period bookings conversion 2014 Low High Pre-2011 Amortization $92 $59 $59 Post -2010 Amortization 127 147 147 Backlog 37 83 83 Revenue Backlog Amortization $256 $289 $289 Bookings $519 $524 $545 Growth Guidance * 1% 5% Bookings Conversion Rate 52.8% 46% 47% Revenue from Current Year Bookings $274 $241 $257 Revenue $530 $530 $546 Year-on-Year Growth 0% 3% 2015 * - Bookings Growth presented on a Constant Dollar Basis

18 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Conversion Model ($M) Revenue Backlog Amortization is baseline of revenue model Bookings conversion is impacted by mix of products (for example):  Software versus non-software  Annual versus multi-year contracts  Subscription & Cloud Adoption Revenue = Revenue backlog amortization + Current period bookings conversion 2014 Low High Pre-2011 Amortization $92 $59 $59 Post -2010 Amortization 127 147 147 Backlog 37 83 83 Revenue Backlog Amortization $256 $289 $289 Bookings $519 $524 $545 Growth Guidance * 1% 5% Bookings Conversion Rate 52.8% 46% 47% Revenue from Current Year Bookings $274 $241 $257 Revenue $530 $530 $546 Year-on-Year Growth 0% 3% 2015 * - Bookings Growth presented on a Constant Dollar Basis

19 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Composition 11% 27% 15% 47% 2015 High End Revenue Guidance Pre-2011 Def Rev Amortization Post -2010 Def Rev Amortization We expect pre-2011 revenue to be replaced with revenue from new bookings Note: 2015 composition is estimated based on high end of 2015 revenue guidance range provided 17% 24% 7% 52% 2014 Revenue Backlog Revenue from Current Year Bookings $92 $59 $127 $147 $37 $83 $274 $257 $0 $100 $200 $300 $400 $500 $600 2014 2015 High End of Guidance Revenue from Current Year Bookings Backlog Post -2010 Def Rev Amortization Pre-2011 Def Rev Amortization

20 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Composition 11% 27% 15% 47% 2015 High End Revenue Guidance Pre-2011 Def Rev Amortization Post -2010 Def Rev Amortization We expect pre-2011 revenue to be replaced with revenue from new bookings Note: 2015 composition is estimated based on high end of 2015 revenue guidance range provided 17% 24% 7% 52% 2014 Revenue Backlog Revenue from Current Year Bookings $92 $59 $127 $147 $37 $83 $274 $257 $0 $100 $200 $300 $400 $500 $600 2014 2015 High End of Guidance Revenue from Current Year Bookings Backlog Post -2010 Def Rev Amortization Pre-2011 Def Rev Amortization

21 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Composition 11% 27% 15% 47% 2015 High End Revenue Guidance Pre-2011 Def Rev Amortization Post -2010 Def Rev Amortization We expect pre-2011 revenue to be replaced with revenue from new bookings Note: 2015 composition is estimated based on high end of 2015 revenue guidance range provided 17% 24% 7% 52% 2014 Revenue Backlog Revenue from Current Year Bookings $92 $59 $127 $147 $37 $83 $274 $257 $0 $100 $200 $300 $400 $500 $600 2014 2015 High End of Guidance Revenue from Current Year Bookings Backlog Post -2010 Def Rev Amortization Pre-2011 Def Rev Amortization

22 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Illustrative Long Term Forecasting Model – NOT GUIDANCE Expected amortization of 12/31/2014 revenue backlog Determine bookings to revenue conversion rate* by year 2014 Revenue backlog amortization + estimated bookings conversion Current year bookings can be modeled into revenue using an assumed annual conversion rate* Apply assumed conversion rate* to current year bookings * Conversion rates will change based on product mix, timing of backlog and potential business practice changes Note: Growth assumption is purely illustrative and provided to demonstrate mechanics of model. For avoidance of doubt, Avid has not previously and is not now providing guidance for any periods after 2015. Low-end $M Guidance 2015 2016 2017 2018 2019 Revenue Backlog Amortization $289 $151 $62 $26 $11 Illustrative Bookings Conversion Bookings 2015 $524 46% 30% 12% 5% 3% 2016 550 46% 30% 12% 5% 2017 578 46% 30% 12% 2018 607 46% 30% 2019 637 46% Modeled revenue from future bookings $241 $410 $494 $545 $588 IIIustrative Revenue $530 $561 $556 $571 $599 Ill u st ra ti ve 5% C A G R Illustrative Future Periods 1 2 3 4 5 Bookings Conversion Rate * 46% 30% 12% 5% 3% Year

23 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Illustrative Long Term Forecasting Model – NOT GUIDANCE Expected amortization of 12/31/2014 revenue backlog Determine bookings to revenue conversion rate* by year 2014 Revenue backlog amortization + estimated bookings conversion Current year bookings can be modeled into revenue using an assumed annual conversion rate* Apply assumed conversion rate* to current year bookings * Conversion rates will change based on product mix, timing of backlog and potential business practice changes Note: Growth assumption is purely illustrative and provided to demonstrate mechanics of model. For avoidance of doubt, Avid has not previously and is not now providing guidance for any periods after 2015. Low-end $M Guidance 2015 2016 2017 2018 2019 Revenue Backlog Amortization $289 $151 $62 $26 $11 Illustrative Bookings Conversion Bookings 2015 $524 46% 30% 12% 5% 3% 2016 550 46% 30% 12% 5% 2017 578 46% 30% 12% 2018 607 46% 30% 2019 637 46% Modeled revenue from future bookings $241 $410 $494 $545 $588 IIIustrative Revenue $530 $561 $556 $571 $599 Ill u st ra ti ve 5% C A G R Illustrative Future Periods 1 2 3 4 5 Bookings Conversion Rate * 46% 30% 12% 5% 3% Year

24 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Illustrative Long Term Forecasting Model – NOT GUIDANCE Expected amortization of 12/31/2014 revenue backlog Determine bookings to revenue conversion rate* by year 2014 Revenue backlog amortization + estimated bookings conversion Current year bookings can be modeled into revenue using an assumed annual conversion rate* Apply assumed conversion rate* to current year bookings * Conversion rates will change based on product mix, timing of backlog and potential business practice changes Note: Growth assumption is purely illustrative and provided to demonstrate mechanics of model. For avoidance of doubt, Avid has not previously and is not now providing guidance for any periods after 2015. Low-end $M Guidance 2015 2016 2017 2018 2019 Revenue Backlog Amortization $289 $151 $62 $26 $11 Illustrative Bookings Conversion Bookings 2015 $524 46% 30% 12% 5% 3% 2016 550 46% 30% 12% 5% 2017 578 46% 30% 12% 2018 607 46% 30% 2019 637 46% Modeled revenue from future bookings $241 $410 $494 $545 $588 IIIustrative Revenue $530 $561 $556 $571 $599 Ill u st ra ti ve 5% C A G R Illustrative Future Periods 1 2 3 4 5 Bookings Conversion Rate * 46% 30% 12% 5% 3% Year

25 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Illustrative Long Term Forecasting Model – NOT GUIDANCE Expected amortization of 12/31/2014 revenue backlog Determine bookings to revenue conversion rate* by year 2014 Revenue backlog amortization + estimated bookings conversion Current year bookings can be modeled into revenue using an assumed annual conversion rate* Apply assumed conversion rate* to current year bookings * Conversion rates will change based on product mix, timing of backlog and potential business practice changes Note: Growth assumption is purely illustrative and provided to demonstrate mechanics of model. For avoidance of doubt, Avid has not previously and is not now providing guidance for any periods after 2015. Low-end $M Guidance 2015 2016 2017 2018 2019 Revenue Backlog Amortization $289 $151 $62 $26 $11 Illustrative Bookings Conversion Bookings 2015 $524 46% 30% 12% 5% 3% 2016 550 46% 30% 12% 5% 2017 578 46% 30% 12% 2018 607 46% 30% 2019 637 46% Modeled revenue from future bookings $241 $410 $494 $545 $588 IIIustrative Revenue $530 $561 $556 $571 $599 Ill u st ra ti ve 5% C A G R Illustrative Future Periods 1 2 3 4 5 Bookings Conversion Rate * 46% 30% 12% 5% 3% Year

Avid Investor Relations Tom Fitzsimmons (978) 640-3346 tom.fitzsimmons@avid.com

Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Appendix

28 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Bookings  Bookings represent total revenue Avid expects to earn over the term of the agreement for goods and /or services provided  Bookings reflect firm orders as documented with persuasive evidence of an agreement and a reasonable assurance that amounts payable under the arrangement are collectable  Bookings are subject to cancellations, changes and adjustments and are based on certain assumptions. Bookings may not reflect final revenue earned for a particular arrangement. Bookings do not reflect adjustments related to rebates or other sales incentive programs  The material weaknesses in our internal control environment may impact the accuracy of recorded bookings

29 Posted March 17, 2015 -- Please note that this presentation should be reviewed with the accompanying audio -- Avid ©2015. Revenue Backlog We define revenue backlog as firm orders received including (i) orders where the customer has paid in advance of our performance obligations being fulfilled, and (ii) orders for future product deliveries or services that have not yet been invoiced by us. We generally ship our products shortly after the receipt of an order. Orders that may exist at the end of a quarter and have not been shipped are not recognized as revenue and are included in revenue backlog. Certain orders included in revenue backlog may be reduced, canceled or deferred by our customers. The expected timing of the recognition or amortization of revenue backlog into revenue is based on current estimates and could change based on a number of factors, including (i) the timing of delivery of products and services, (ii) customer cancellations or change orders, (iii) changes in the estimated period of time Implied Maintenance Release PCS is provided to customers or (iv) changes in accounting standards or policies. Implied Maintenance Release PCS, as we define it, is the implicit obligation to make software updates available to customers over a period of time which represents implied post-contract customer support and is deemed to be a deliverable in each arrangement and accounted for as a separate element. As there is no industry standard definition of revenue backlog, our reported revenue backlog may not be comparable with other companies. Additional information on our revenue backlog can be found in the section called “Management’s Discussion and Analysis of Financial Condition and Results of Operation” in our Form 10-K for fiscal year ended December 31, 2014 filed with the SEC.