Avid Lowers Second Quarter Expectations
Avid Technology, Inc. has announced a lower outlook for its second quarter financial results. As a result of weakened economic conditions globally, revenues for the second quarter ended June 30, 2001 are projected to be below previous expectations and in the range of US$108 to $111 million. Avid's European video business and the company's worldwide audio business have been most impacted by the slowing economy, with both experiencing reductions in revenue over last year. As a result of the reduced revenue, gross profit will be lower than originally expected. However, operating expenses will also be below previous estimates. Taking into account the lower than expected gross profit and operating expenses, and excluding acquisition-related amortization, Avid's operating loss is expected to be in the range of $2 to $4 million and its net loss is expected to be in the range of $1 to $3 million. David Krall, Avid's president and chief executive officer, said, "While we are disappointed with the impact of the global economic slowdown on this quarter's projected results, we also had positive results in several key areas. We saw growth in our video business in the United States and Asia. We experienced strong demand for our high-end high-definition (HD) finishing systems. Also, we continue to see adoption of our big picture strategy of offering end-to-end solutions to our customers. We plan to continue managing our expenses tightly while investing in those areas critical to Avid's future." Avid plans to release its second quarter results on July 19, 2001 after the close of the market.