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| 8-K - AVID TECHNOLOGY, INC. | f8k_7302012.htm |
EXHIBIT 99.1
Avid Announces Results for Second Quarter 2012
Reports Year-on-Year Revenue Growth for Non-divested Business
BURLINGTON, MA- July 30, 2012-Avid® (NASDAQ: AVID) today reported GAAP revenues of $157.4 million for the three-month period ended June 30, 2012, compared to $161.8 million for the same period in 2011. The GAAP net loss for the second quarter was $39.0 million, or $1.01 per share, compared to a GAAP net loss of $11.1 million, or $0.29 per share, in the second quarter of 2011.
Excluding revenue from the consumer product lines divested on July 2nd, the revenue for the three-month period ended June 30, 2012 was $143.7 million and the revenue on the same basis for the three-month period ended June 30, 2011 was $137.3 million.
The GAAP net loss for the second quarter of 2012 and 2011 included amortization of intangible assets, stock-based compensation, restructuring costs and costs and allowances related to divestitures, acquisition and other costs, losses on assets held for sale and asset sales, legal settlement for 2011 only and related tax adjustments collectively totaling $34.9 million and $7.8 million, respectively. Excluding these items, the non-GAAP net loss for the second quarter of 2012 was $4.1 million, or $0.11 per share, compared to non-GAAP net loss of $3.4 million, or $0.09 per share, for the second quarter of 2011.
The GAAP operating loss for the second quarter of 2012 was $37.8 million and excluding the items identified above, except tax adjustments, the non-GAAP operating loss for the second quarter was $2.1 million.
“Our results for the second quarter were encouraging with 5% year-on-year revenue growth for our ongoing business and a $10 million sequential increase in our cash balance,” said Gary Greenfield, chairman and CEO of Avid. “This performance reinforced the strategic direction we took earlier this month and we are excited about our prospects for the second half of the year.”
Revenues for the six-month period ended June 30, 2012 were $309.6 million, compared to revenues of $327.5 million for the same period in 2011. The GAAP net loss for the first six months of 2012 was $52.0 million, or $1.34 per share, compared to a GAAP net loss of $15.9 million, or $0.42 per share, for the same period in 2011. The GAAP net loss for the six-month period ended June 30, 2012 included $40.5 million of amortization of intangible assets, stock-based compensation, restructuring costs and costs and allowances related to divestitures, acquisition and other costs, loss on asset sales and related tax adjustments. Excluding these items, the non-GAAP net loss was $11.5 million, or $0.30 per share, for the first half of 2012. The GAAP net loss for the six-month period ended June 30, 2011 included $13.2 million of amortization of intangible assets, stock-based compensation, restructuring costs, legal settlement, acquisition-related costs, loss on asset sales and related tax adjustments. Excluding these items, the non-GAAP net loss for the six-month period ended June 30, 2011 was $2.7 million or $0.07 per share.
A reconciliation of GAAP to non-GAAP results is included in the tables attached to this release.
The company's cash balance on June 30, 2012 was $59.4 million. The quarter-end cash balance excludes the proceeds from the sale of consumer product lines of $14.5 million, a portion of which is being held in escrow. It is expected that these proceeds will offset the majority of cash cost associated with the Company's 2012 restructuring plan.
The company continues to review certain estimates associated with the divestiture of consumer product lines and estimates related to the restructuring costs and costs and allowances related to divestitures. A change in those estimates could result in adjustments to the company's financial statements in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, which could be material.
Conference Call
A conference call to discuss Avid's second quarter 2012 financial results will be held today, July 30, 2012 at 5:00 p.m. ET. The call will be open to the public and can be accessed by dialing 719.457.2617 and referencing confirmation code 4569475. The call and subsequent replay will also be available on Avid's website. To join the webcast via this alternative, go to the Investors tab at www.avid.com for complete details prior to the start of the conference call.
Use of Non-GAAP Financial Measures
This press release contains “non-GAAP financial measures” under the rules of the U.S. Securities and Exchange Commission. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. This non-GAAP information supplements, and is not intended to represent a measure of performance in accordance with, disclosures required by generally accepted accounting
principles, or GAAP. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. The reconciliation of the GAAP to non-GAAP financial measures is in the tables attached to this press release.
Management considers both GAAP and non-GAAP financial results in managing our business. Non-GAAP financial measures are used internally, for example, in establishing annual operating budgets, in assessing operating performance and for measuring performance under incentive compensation plans. Non-GAAP financial measures are also used in operating and financial decision-making because we believe these measures reflect our ongoing business and allow meaningful period-to-period comparisons. We believe it is useful for investors and others to also review both GAAP and non-GAAP measures in order to understand and evaluate our current operating performance and future prospects in the same manner as management and to compare in a consistent manner the company's current financial results with past financial performance. The primary limitations associated with our use of non-GAAP financial measures are that they may not include all items of income and expense that affect our operations and that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, terms referring to non-GAAP financial measures used in this press release, such as non-GAAP net loss, do not have standardized meanings. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for this limitation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached to this press release.
Use of Forward-Looking Statements
The financial results included in this release are preliminary and unaudited. The contents of this release are subject to the completion and filing of our Quarterly Report on Form 10-Q. This release may include forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. Statements in this press release that relate to future results or events are forward-looking statements and are based on Avid's current estimates and assumptions. Forward-looking statements may be identified by the use of forward-looking words, such as “anticipate,” “believe,” “should,” “estimate,” “expect,” “intend,” “confidence,” “may,” “plan,” “feel,” “could,” “will,” and “would,” or similar expressions. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors, including: adjustments that may be made to Avid's preliminary financial results included in this release as a result of the review of certain estimates associated with the sale of Avid's consumer audio and video product lines and restructuring costs and costs and allowances related to divestitures; Avid's ability to execute its strategic plan and meet customer needs; Avid's ability to realize operational and financial benefits from the sale of its consumer audio and video product lines and the reduction in workforce
announced earlier this month; Avid's ability to sell its professional products through retail sales channels following the divestiture of consumer products sold through those sales channels; its ability to produce innovative products in response to changing market demand, particularly in the media industry; competitive factors; fluctuations in its revenue, based on, among other things, Avid's performance in particular geographies or markets, fluctuations in foreign currency exchange rates, and seasonal factors; adverse changes in economic conditions; Avid's liquidity; and other risk factors and uncertainties disclosed previously and from time to time in Avid's filings with the U.S. Securities and Exchange Commission. In addition, the 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 these forward-looking statements at some point in the future, Avid specifically disclaims any obligation to do so, even if the estimates change.
About Avid
Avid creates the digital audio and video technology used to make the most listened to, most watched and most loved media in the world - from the most prestigious and award-winning feature films, music recordings, television shows, to live concert tours and news broadcasts. Some of Avid's most influential and pioneering solutions include Media Composer®, Pro Tools®, Interplay®, ISIS®, VENUE, Sibelius®, and System 5. For more information about Avid solutions and services, visit www.avid.com, Flickr, Twitter and YouTube; connect with Avid on Facebook; or subscribe to Avid Industry Buzz.
© 2012 Avid Technology, Inc. All rights reserved. Product features, specifications, system requirements and availability are subject to change without notice. All prices are MSRP for the U.S. and Canada only and are subject to change without notice. Contact your local Avid office or reseller for prices outside the U.S. and Canada. Avid, the Avid logo, Fast Track, Media Composer, Pro Tools, Interplay, ISIS, and Sibelius are trademarks or registered trademarks of Avid Technology, Inc. or its subsidiaries in the United States and/or other countries. The Interplay name is used with the permission of the Interplay Entertainment Corp. which bears no responsibility for Avid products. All other trademarks are the property of their respective owners.
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AVID TECHNOLOGY, INC.
Condensed Consolidated Statements of Operations
(in thousands except per share data, unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net revenues: | |||||||||||||||
Products | $ | 125,874 | $ | 129,488 | $ | 245,812 | $ | 266,234 | |||||||
Services | 34,405 | 32,295 | 66,607 | 61,301 | |||||||||||
Less allowances related to divestitures | (2,848 | ) | (2,848 | ) | |||||||||||
Total net revenues | 157,431 | 161,783 | 309,571 | 327,535 | |||||||||||
Cost of revenues: | |||||||||||||||
Products | 66,637 | 64,023 | 127,850 | 127,888 | |||||||||||
Services | 14,325 | 14,706 | 27,042 | 28,760 | |||||||||||
Amortization of intangible assets | 649 | 685 | 1,294 | 1,351 | |||||||||||
Restructuring costs | 1,913 | 1,913 | |||||||||||||
Total cost of revenues | 83,524 | 79,414 | 158,099 | 157,999 | |||||||||||
Gross profit | 73,907 | 82,369 | 151,472 | 169,536 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 26,900 | 30,453 | 54,381 | 60,426 | |||||||||||
Marketing and selling | 43,454 | 45,851 | 89,380 | 90,917 | |||||||||||
General and administrative | 14,324 | 14,234 | 29,214 | 29,219 | |||||||||||
Amortization of intangible assets | 1,105 | 2,161 | 2,717 | 4,306 | |||||||||||
Restructuring costs (recoveries), net | 15,841 | 162 | 16,009 | (1,314 | ) | ||||||||||
Loss on sales of assets | 10,045 | 597 | 9,793 | 597 | |||||||||||
Total operating expenses | 111,669 | 93,458 | 201,494 | 184,151 | |||||||||||
Operating loss | (37,762 | ) | (11,089 | ) | (50,022 | ) | (14,615 | ) | |||||||
Interest and other income (expense), net | (379 | ) | (645 | ) | (573 | ) | (945 | ) | |||||||
Loss before income taxes | (38,141 | ) | (11,734 | ) | (50,595 | ) | (15,560 | ) | |||||||
Provision for income taxes, net | 903 | (590 | ) | 1,426 | 367 | ||||||||||
Net loss | $ | (39,044 | ) | $ | (11,144 | ) | $ | (52,021 | ) | $ | (15,927 | ) | |||
Net loss per common share – basic and diluted | $ | (1.01 | ) | $ | (.29 | ) | $ | (1.34 | ) | $ | (.42 | ) | |||
Weighted-average common shares outstanding – basic and diluted | 38,778 | 38,413 | 38,720 | 38,323 | |||||||||||
AVID TECHNOLOGY, INC.
(in thousands except per share data, unaudited)
Reconciliations of GAAP financial measures to Non-GAAP financial measures: | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2012 | ||||||||||||||||||||||||||||
Gross | Operating | Operating | Tax | Net | ||||||||||||||||||||||||
Revenues | COGS | Profit | Expenses | Loss | Provision | Loss | ||||||||||||||||||||||
GAAP | $ | 157,431 | $ | 83,524 | $ | 73,907 | $ | 111,669 | $ | (37,762 | ) | $ | 903 | $ | (39,044 | ) | ||||||||||||
Amortization of intangible assets | (649 | ) | 649 | (1,105 | ) | 1,754 | 1,754 | |||||||||||||||||||||
Restructuring costs, and costs and allowances related to divestitures | 2,848 | (1,913 | ) | 4,761 | (15,841 | ) | 20,602 | 20,602 | ||||||||||||||||||||
Acquisition and other costs (a) | (974 | ) | 974 | 974 | ||||||||||||||||||||||||
Loss on assets held for sale | (10,045 | ) | 10,045 | 10,045 | ||||||||||||||||||||||||
Tax adjustment | 674 | (674 | ) | |||||||||||||||||||||||||
Stock-based compensation included in: | ||||||||||||||||||||||||||||
Cost of products revenues | (110 | ) | 110 | 110 | 110 | |||||||||||||||||||||||
Cost of services revenues | (151 | ) | 151 | 151 | 151 | |||||||||||||||||||||||
Research and development expenses | (268 | ) | 268 | 268 | ||||||||||||||||||||||||
Marketing and selling expenses | 63 | (63 | ) | (63 | ) | |||||||||||||||||||||||
General and administrative expenses | (1,776 | ) | 1,776 | 1,776 | ||||||||||||||||||||||||
Non-GAAP | $ | 160,279 | $ | 80,701 | $ | 79,578 | $ | 81,723 | $ | (2,145 | ) | $ | 1,577 | $ | (4,101 | ) | ||||||||||||
Weighted-average shares outstanding - diluted | 38,778 | |||||||||||||||||||||||||||
Non-GAAP net loss per share - diluted | $ | (0.11 | ) | |||||||||||||||||||||||||
(a) Represents costs included in general and administrative expenses | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2011 | ||||||||||||||||||||||||||||
Gross | Operating | Operating | Tax | Net | ||||||||||||||||||||||||
Revenues | COGS | Profit | Expenses | (Loss) Income | Provision | Loss | ||||||||||||||||||||||
GAAP | $ | 161,783 | $ | 79,414 | $ | 82,369 | $ | 93,458 | $ | (11,089 | ) | $ | (590 | ) | $ | (11,144 | ) | |||||||||||
Amortization of intangible assets | (685 | ) | 685 | (2,161 | ) | 2,846 | 2,846 | |||||||||||||||||||||
Restructuring recoveries, net | (162 | ) | 162 | 162 | ||||||||||||||||||||||||
Legal settlement and acquisition-related costs(a) | (392 | ) | 392 | 392 | ||||||||||||||||||||||||
Loss on sale of assets | (597 | ) | 597 | 597 | ||||||||||||||||||||||||
Tax adjustment | 245 | (245 | ) | |||||||||||||||||||||||||
Stock-based compensation included in: | ||||||||||||||||||||||||||||
Cost of products revenues | (111 | ) | 111 | 111 | 111 | |||||||||||||||||||||||
Cost of services revenues | (277 | ) | 277 | 277 | 277 | |||||||||||||||||||||||
Research and development expenses | (427 | ) | 427 | 427 | ||||||||||||||||||||||||
Marketing and selling expenses | (1,356 | ) | 1,356 | 1,356 | ||||||||||||||||||||||||
General and administrative expenses | (1,846 | ) | 1,846 | 1,846 | ||||||||||||||||||||||||
Non-GAAP | $ | 161,783 | $ | 78,341 | $ | 83,442 | $ | 86,517 | $ | (3,075 | ) | $ | (345 | ) | $ | (3,375 | ) | |||||||||||
Weighted-average shares outstanding - diluted | 38,413 | |||||||||||||||||||||||||||
Non-GAAP net loss per share - diluted | $ | (0.09 | ) | |||||||||||||||||||||||||
Reconciliations of GAAP financial measures to Non-GAAP financial measures: | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||
Gross | Operating | Operating | Tax | Net | ||||||||||||||||||||||||
Revenues | COGS | Profit | Expenses | Loss | Provision | Loss | ||||||||||||||||||||||
GAAP | $ | 309,571 | $ | 158,099 | $ | 151,472 | $ | 201,494 | $ | (50,022 | ) | $ | 1,426 | $ | (52,021 | ) | ||||||||||||
Amortization of intangible assets | (1,294 | ) | 1,294 | (2,717 | ) | 4,011 | 4,011 | |||||||||||||||||||||
Restructuring costs, and costs and allowances related to divestitures | 2,848 | (1,913 | ) | 4,761 | (16,009 | ) | 20,770 | 20,770 | ||||||||||||||||||||
Acquisition and other costs (a) | (1,457 | ) | 1,457 | 1,457 | ||||||||||||||||||||||||
Loss on assets held for sale | (9,793 | ) | 9,793 | 9,793 | ||||||||||||||||||||||||
Tax adjustment | 926 | (926 | ) | |||||||||||||||||||||||||
Stock-based compensation included in: | ||||||||||||||||||||||||||||
Cost of products revenues | (204 | ) | 204 | 204 | 204 | |||||||||||||||||||||||
Cost of services revenues | (308 | ) | 308 | 308 | 308 | |||||||||||||||||||||||
Research and development expenses | (575 | ) | 575 | 575 | ||||||||||||||||||||||||
Marketing and selling expenses | (1,198 | ) | 1,198 | 1,198 | ||||||||||||||||||||||||
General and administrative expenses | (3,091 | ) | 3,091 | 3,091 | ||||||||||||||||||||||||
Non-GAAP | $ | 312,419 | $ | 154,380 | $ | 158,039 | $ | 166,654 | $ | (8,615 | ) | $ | 2,352 | $ | (11,540 | ) | ||||||||||||
Weighted-average shares outstanding - diluted | 38,720 | |||||||||||||||||||||||||||
Non-GAAP net loss per share - diluted | $ | (0.30 | ) | |||||||||||||||||||||||||
(a) Represents costs included in general and administrative expenses | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2011 | ||||||||||||||||||||||||||||
Gross | Operating | Operating | Tax | Net | ||||||||||||||||||||||||
Revenues | COGS | Profit | Expenses | (Loss) Income | Provision | Loss | ||||||||||||||||||||||
GAAP | $ | 327,535 | $ | 157,999 | $ | 169,536 | $ | 184,151 | $ | (14,615 | ) | $ | 367 | $ | (15,927 | ) | ||||||||||||
Amortization of intangible assets | (1,351 | ) | 1,351 | (4,306 | ) | 5,657 | 5,657 | |||||||||||||||||||||
Restructuring recoveries, net | 1,314 | (1,314 | ) | (1,314 | ) | |||||||||||||||||||||||
Legal settlement and acquisition-related costs(a) | (989 | ) | 989 | 989 | ||||||||||||||||||||||||
Tax adjustment | 300 | (300 | ) | |||||||||||||||||||||||||
Stock-based compensation included in: | ||||||||||||||||||||||||||||
Cost of products revenues | (249 | ) | 249 | 249 | 249 | |||||||||||||||||||||||
Cost of services revenues | (545 | ) | 545 | 545 | 545 | |||||||||||||||||||||||
Research and development expenses | (899 | ) | 899 | 899 | ||||||||||||||||||||||||
Marketing and selling expenses | (2,574 | ) | 2,574 | 2,574 | ||||||||||||||||||||||||
General and administrative expenses | (3,882 | ) | 3,882 | 3,882 | ||||||||||||||||||||||||
Non-GAAP | $ | 327,535 | $ | 155,854 | $ | 171,681 | $ | 172,815 | $ | (1,134 | ) | $ | 667 | $ | (2,746 | ) | ||||||||||||
Weighted-average shares outstanding - diluted | 38,323 | |||||||||||||||||||||||||||
Non-GAAP net loss per share - diluted | $ | (0.07 | ) | |||||||||||||||||||||||||
Revenues Summary: | Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Video revenues | $ | 98,942 | $ | 96,667 | $ | 182,948 | $ | 190,686 | ||||||||
Audio revenues | 61,337 | 65,116 | 129,471 | 136,849 | ||||||||||||
Less allowances related to divestitures | (2,848 | ) | (2,848 | ) | ||||||||||||
Total net revenues | $ | 157,431 | $ | 161,783 | $ | 309,571 | $ | 327,535 | ||||||||
AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
June 30, 2012 | December 31, 2011 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 59,383 | $ | 32,855 | |||
Accounts receivable, net of allowances of $19,187 and $15,985 at June 30, 2012 and December 31, 2011, respectively | 89,180 | 104,305 | |||||
Inventories | 77,813 | 111,397 | |||||
Deferred tax assets, net | 1,462 | 1,480 | |||||
Prepaid expenses | 8,580 | 7,652 | |||||
Assets held for sale (a) | 12,608 | — | |||||
Other current assets | 15,948 | 14,405 | |||||
Total current assets | 264,974 | 272,094 | |||||
Property and equipment, net | 49,153 | 53,487 | |||||
Intangible assets, net | 10,996 | 18,524 | |||||
Goodwill | 238,338 | 246,592 | |||||
Other assets | 8,496 | 11,568 | |||||
Total assets | $ | 571,957 | $ | 602,265 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 38,990 | $ | 42,533 | |||
Accrued compensation and benefits | 26,411 | 31,447 | |||||
Accrued expenses and other current liabilities | 46,442 | 35,108 | |||||
Income taxes payable | 10,877 | 8,950 | |||||
Deferred revenues | 57,015 | 45,768 | |||||
Total current liabilities | 179,735 | 163,806 | |||||
Long-term liabilities | 29,704 | 27,885 | |||||
Total liabilities | 209,439 | 191,691 | |||||
Stockholders’ equity: | |||||||
Common stock | 423 | 423 | |||||
Additional paid-in capital | 1,024,082 | 1,019,200 | |||||
Accumulated deficit | (588,219 | ) | (532,477 | ) | |||
Treasury stock at cost, net of reissuances | (78,008 | ) | (82,301 | ) | |||
Accumulated other comprehensive income | 4,240 | 5,729 | |||||
Total stockholders’ equity | 362,518 | 410,574 | |||||
Total liabilities and stockholders’ equity | $ | 571,957 | $ | 602,265 | |||
(a) - Assets held for sale comprise | ||||||
Inventory | $ | 10,703 | ||||
Prepaid expense | 60 | |||||
Capitalized Software | 372 | |||||
Intangibles and Goodwill | 11,518 | |||||
Less write down to Fair Value | (10,045 | ) | ||||
$ | 12,608 | |||||
AVID TECHNOLOGY, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net loss | $ | (39,044 | ) | $ | (11,144 | ) | $ | (52,021 | ) | $ | (15,927 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||||||
Depreciation and amortization | 10,549 | 7,983 | 18,123 | 15,875 | |||||||||||
Provision for doubtful accounts | 15 | 315 | (62 | ) | 459 | ||||||||||
Non-cash provision for restructuring | (4,761 | ) | — | (4,761 | ) | 125 | |||||||||
(Gain)/Loss on Divestitures | 10,045 | — | 10,045 | — | |||||||||||
(Gain)/Loss on Disposal of Fixed Assets | (255 | ) | 596 | (257 | ) | 591 | |||||||||
Compensation expense from stock grants and options | 2,242 | 4,016 | 5,375 | 8,149 | |||||||||||
Non-cash interest expense | — | (80 | ) | 73 | — | ||||||||||
Unrealized foreign currency transaction losses | (3,146 | ) | 2,705 | (848 | ) | 6,490 | |||||||||
Changes in deferred tax assets and liabilities, excluding initial effects of acquisitions | 451 | (4 | ) | 823 | (4 | ) | |||||||||
Changes in operating assets and liabilities, excluding initial effects of acquisitions: | |||||||||||||||
Accounts receivable | 495 | (2,497 | ) | 17,352 | 2,783 | ||||||||||
Inventories | 28,427 | (5,285 | ) | 36,158 | (22,161 | ) | |||||||||
Prepaid expenses and other current assets | (13,891 | ) | 1,491 | (14,866 | ) | (208 | ) | ||||||||
Accounts payable | 1,845 | (2,496 | ) | (3,531 | ) | (2,389 | ) | ||||||||
Accrued expenses, compensation and benefits and other liabilities | 17,820 | (5,002 | ) | 5,482 | (20,244 | ) | |||||||||
Income taxes payable | 2,936 | (1,490 | ) | 2,170 | (2,031 | ) | |||||||||
Deferred revenues | (260 | ) | 2,916 | 13,171 | 14,460 | ||||||||||
Net cash provided by (used in) operating activities | 13,468 | (7,976 | ) | 32,426 | (14,032 | ) | |||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment, net | (1,901 | ) | (2,300 | ) | (5,489 | ) | (5,845 | ) | |||||||
Decrease (increase) in other long-term assets | (1,321 | ) | 156 | (3 | ) | (461 | ) | ||||||||
Net cash used in investing activities | (3,222 | ) | (2,144 | ) | (5,492 | ) | (6,306 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from the issuance of common stock under employee stock plans | 252 | 1,222 | 80 | 1,349 | |||||||||||
Proceeds from revolving credit facilities | — | 13,000 | 1,000 | 21,000 | |||||||||||
Payments on revolving credit facilities | — | — | (1,000 | ) | (8,000 | ) | |||||||||
Net cash (used in) provided by financing activities | 252 | 14,222 | 80 | 14,349 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (796 | ) | 235 | (486 | ) | 764 | |||||||||
Net increase (decrease) in cash and cash equivalents | 9,702 | 4,337 | 26,528 | (5,225 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 49,681 | 33,220 | 32,855 | 42,782 | |||||||||||
Cash and cash equivalents at end of period | $ | 59,383 | $ | 37,557 | $ | 59,383 | $ | 37,557 | |||||||
AVID TECHNOLOGY, INC. | ||||||||||||||||||||||||||||||
(unaudited - in Thousands) | ||||||||||||||||||||||||||||||
Supplemental Revenue Information | ||||||||||||||||||||||||||||||
Twelve Months Ended Dec 31, 2010 | Three Months Ended Mar 31, 2011 | Three Months Ended Jun 30, 2011 | Three Months Ended Sep 30, 2011 | Three Months Ended Dec 31, 2011 | Twelve Months Ended Dec 31, 2011 | Three Months Ended Mar 31, 2012 | Three Months Ended Jun 30, 2012 | Six Months Ended Jun 30, 2012 | Percentage Change Three Months Ended June 30, 2011 compared to June 30, 2012 | |||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||
Video | ||||||||||||||||||||||||||||||
Product | 281,898 | 66,510 | 64,612 | 67,605 | 79,548 | 278,276 | 53,422 | 65,017 | 118,439 | 0.6 | % | |||||||||||||||||||
Services | 113,429 | 27,508 | 31,001 | 31,829 | 36,177 | 126,515 | 30,584 | 33,048 | 63,632 | 6.6 | % | |||||||||||||||||||
Sub-Total | 395,327 | 94,018 | 95,613 | 99,434 | 115,726 | 404,791 | 84,006 | 98,065 | 182,071 | 2.6 | % | |||||||||||||||||||
Audio | ||||||||||||||||||||||||||||||
Product | 279,409 | 70,253 | 65,002 | 64,002 | 67,919 | 267,176 | 66,516 | 58,009 | 124,525 | (10.8 | )% | |||||||||||||||||||
Services | 5,002 | 1,480 | 1,169 | 1,261 | 1,156 | 5,066 | 1,618 | 1,358 | 2,975 | 16.2 | % | |||||||||||||||||||
Sub-Total | 284,411 | 71,733 | 66,171 | 65,264 | 69,075 | 272,242 | 68,134 | 59,366 | 127,500 | (10.3 | )% | |||||||||||||||||||
Total | ||||||||||||||||||||||||||||||
Product | 561,307 | 136,763 | 129,614 | 131,608 | 147,467 | 545,452 | 119,938 | 123,026 | 242,964 | (5.1 | )% | |||||||||||||||||||
Services | 118,430 | 28,988 | 32,170 | 33,090 | 37,333 | 131,581 | 32,201 | 34,406 | 66,607 | 7.0 | % | |||||||||||||||||||
Total | 679,737 | 165,751 | 161,783 | 164,698 | 184,800 | 677,033 | 152,139 | 157,431 | 309,571 | (2.7 | )% | |||||||||||||||||||
Divested Consumer Product Lines | ||||||||||||||||||||||||||||||
Video | ||||||||||||||||||||||||||||||
Product | 30,793 | 8,779 | 7,532 | 6,097 | 5,565 | 27,973 | 4,369 | 2,310 | 6,679 | (69.3 | )% | |||||||||||||||||||
Services | ||||||||||||||||||||||||||||||
Sub-Total | 30,793 | 8,779 | 7,532 | 6,097 | 5,565 | 27,973 | 4,369 | 2,310 | 6,679 | (69.3 | )% | |||||||||||||||||||
Audio | ||||||||||||||||||||||||||||||
Product | 72,694 | 16,258 | 16,939 | 15,364 | 14,881 | 63,442 | 12,884 | 11,392 | 24,276 | (32.7 | )% | |||||||||||||||||||
Services | ||||||||||||||||||||||||||||||
Sub-Total | 72,694 | 16,258 | 16,939 | 15,364 | 14,881 | 63,442 | 12,884 | 11,392 | 24,276 | (32.7 | )% | |||||||||||||||||||
Total | ||||||||||||||||||||||||||||||
Product | 103,487 | 25,037 | 24,471 | 21,461 | 20,446 | 91,415 | 17,253 | 13,702 | 30,955 | (44.0 | )% | |||||||||||||||||||
Services | ||||||||||||||||||||||||||||||
Total | 103,487 | 25,037 | 24,471 | 21,461 | 20,446 | 91,415 | 17,253 | 13,702 | 30,955 | (44.0 | )% | |||||||||||||||||||
AVID TECHNOLOGY, INC. | ||||||||||||||||||||||||||||||
(unaudited - in Thousands) | ||||||||||||||||||||||||||||||
Supplemental Revenue Information (continued) | ||||||||||||||||||||||||||||||
Twelve Months Ended Dec 31, 2010 | Three Months Ended Mar 31, 2011 | Three Months Ended Jun 30, 2011 | Three Months Ended Sep 30, 2011 | Three Months Ended Dec 31, 2011 | Twelve Months Ended Dec 31, 2011 | Three Months Ended Mar 31, 2012 | Three Months Ended Jun 30, 2012 | Six Months Ended Jun 30, 2012 | Percentage Change Three Months Ended June 30, 2011 compared to June 30, 2012 | |||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||
On-going Business | ||||||||||||||||||||||||||||||
Video | ||||||||||||||||||||||||||||||
Product | 251,105 | 57,731 | 57,080 | 61,508 | 73,983 | 250,303 | 49,053 | 62,707 | 111,760 | 9.9 | % | |||||||||||||||||||
Services | 113,429 | 27,508 | 31,001 | 31,829 | 36,177 | 126,515 | 30,584 | 33,048 | 63,632 | 6.6 | % | |||||||||||||||||||
Sub-Total | 364,534 | 85,239 | 88,081 | 93,337 | 110,161 | 376,818 | 79,637 | 95,755 | 175,391 | 8.7 | % | |||||||||||||||||||
Audio | ||||||||||||||||||||||||||||||
Product | 206,715 | 53,995 | 48,063 | 48,638 | 53,038 | 203,734 | 53,632 | 46,617 | 100,249 | (3.0 | )% | |||||||||||||||||||
Services | 5,002 | 1,480 | 1,169 | 1,261 | 1,156 | 5,066 | 1,618 | 1,358 | 2,975 | 16.2 | % | |||||||||||||||||||
Sub-Total | 211,717 | 55,475 | 49,232 | 49,900 | 54,194 | 208,800 | 55,250 | 47,974 | 103,224 | (2.6 | )% | |||||||||||||||||||
Total | ||||||||||||||||||||||||||||||
Product | 457,820 | 111,726 | 105,143 | 110,147 | 127,021 | 454,037 | 102,685 | 109,323 | 212,008 | 4.0 | % | |||||||||||||||||||
Services | 118,430 | 28,988 | 32,170 | 33,090 | 37,333 | 131,581 | 32,201 | 34,406 | 66,607 | 7.0 | % | |||||||||||||||||||
Total | 576,250 | 140,714 | 137,312 | 143,237 | 164,354 | 585,618 | 134,886 | 143,729 | 278,615 | 4.7 | % | |||||||||||||||||||