Avid Second Quarter Revenues See Some Increase
Avid Technology, Inc. announced financial results for the quarter ended June 30, 2000. Revenues for 200O were US$120 million up from $116.4 million a year ago. For the quarter, the company recorded a net loss of $18.1 million, or $.07 per share, including amortization of acquisition-related intangible assets, compared to a net loss of $8 million, or $.34 per share in the second quarter of 1999. If the acquisition-related amortization was not included the technology firm would have reported new income of $1.7 million, or $.06 per share, versus $2.7 million, or $.10 per diluted share a year previous. For the first half of 2000, Avid reported net revenues of $228.7 million, compared to net revenues of $227.6 million in 1999. The net loss for the first half was $37.6 million or $1.51 per share, compared to net loss of $19.5 million or $.81 per share in the first half of 1999. Minus acquisition-related amortization, Avid would have recorded net income of $2 million, or $.08 per share in the first six months of 2000, versus its $5.4 million, or $.20 per diluted share net income reported in 1999. President and CEO, David Krall, said, "We are pleased to report a second consecutive quarter of profitability and earnings per share growth, excluding amortization of acquisition-related intangibles. We are also reporting growth in revenue measured on a year-over-year basis. During the quarter, we launched our Edgestreme Systems division, which is poised to become a market leader in the streaming video delivery and distribution arena. We also acquired The Motion Factory, Inc., which we are integrating with our Softimage 3D business. This will broaden our market reach in the interactive 3D industry. Lastly, we have continued to make substantial progress in implementing our Internet-based initiatives, including AvidProNet.com, the first company site for new media professionals, which will provide Internet-based services that will enhance the productivity of the professional editor. Avids Digidesign audio studio division had yet another record quarter. Augmenting its financial performance, Digidesign Pro Tools software is becoming the industry standard for audio editing, and the low-end Digi 001 product continues to build upon its initial success with increased sales. At Softimage, the next generation 3D animation solution, SOFTIMAGE|XSI, began shipping to positive customer feedback." The company's video and editing and effects business made up approximately 72% of second quarter revenue, and saw sequential growth in all areas. Media Composer revenue was up slightly with a shift in revenue favoring upgrades as opposed to systems. Avid's newer products, specifically Avid Unity, Avid Xpress DV and SOFTIMAGE|XSI, contributed to the revenue increase, as did the SOFTIMAGE|DS and Avid Symphony(TM) high-end editing and finishing products. During the quarter, Avid also shipped version 1.2 of the Avid Unity MediaNet system, a media network for professional media production and distribution. Avid Unity sales reached their highest quarterly level to date, with a 70% revenue increase over the first quarter. Krall finished by saying, ``Our positive financial results and progress toward our product initiatives were significant accomplishments, and reflect the hard work of all Avid employees. We are continuing to make short-term improvements in our business, and the expense savings we gained from last year's restructuring are being applied toward key investments in longer-term growth opportunities, including web media production, services, and distribution. Our goal is to clearly affirm Avid's position as market leader and technology innovator.''