Company profile

Ticker
AVID
Exchange
CEO
Jeff Rosica
Employees
Incorporated in
Location
Fiscal year end
Former names
Avid Technology Inc
SEC CIK
IRS number
42977748

AVID stock data

(
)

Calendar

6 Aug 19
25 Aug 19
31 Dec 19

News

Company financial data Financial data

Quarter (USD) Jun 19 Mar 19 Dec 18 Sep 18
Revenue 98.7M 103.32M 112.68M 104.05M
Net income -10.72M -213K 5.9M 878K
Diluted EPS -0.25 -0.01 0.14 0.02
Net profit margin -10.86% -0.21% 5.24% 0.84%
Operating income 2.57M 5.41M 12.08M 7.03M
Net change in cash -4.37M -777K 5.64M -9.75M
Cash on hand 50.96M 55.33M 56.1M 50.46M
Cost of revenue 42.04M 42.04M 46.17M 43.44M
Annual (USD) Dec 18 Dec 17 Dec 16 Dec 15
Revenue 413.28M 419M 511.93M 505.6M
Net income -10.67M -13.56M 48.22M 2.48M
Diluted EPS -0 1.2 0.06
Net profit margin -2.58% -3.24% 9.42% 0.49%
Operating income 13.68M 5.25M 64.02M 6.97M
Net change in cash -1.12M 12.28M 27.05M -7.15M
Cash on hand 56.1M 57.22M 44.95M 17.9M
Cost of revenue 174.12M 176.89M 179.21M 197.45M

Financial data from company earnings reports

Financial report summary

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Competition
ChyronHegoAppleQuantumQuantumMedia 100AutodeskDellHarmonicBeldenQuantum
Risks
  • The rapid evolution of the media industry is changing our customers’ needs, businesses and revenue models, and if we cannot anticipate these changes or adapt to them quickly, our revenues will be adversely affected and our business will be harmed.
  • Our success depends in significant part on our ability to offer innovative products and solutions in response to dynamic and rapidly evolving market demand.
  • Our increased emphasis on a cloud strategy may give rise to risks that could harm our business.
  • We operate in highly fragmented and competitive markets, and our competitors may be able to draw upon a greater depth and breadth of resources than those available to us.
  • Certain of our enterprise offerings have long and complex sales cycles, which could result in a loss of customers and lower revenues.
  • There are a number of risks in our subscription model.
  • Failure of our information systems or those of third parties or breaches of data security could cause significant harm to our business.
  • We obtain certain hardware product components and finished goods under sole-source supply arrangements, and any disruptions to these arrangements could jeopardize the manufacturing or distribution of certain of our hardware products.
  • We depend on the availability and proper functioning of certain third-party technology that we incorporate into or bundle with our products. Third-party technology may include defects or errors that could adversely affect the performance of our products. If third-party technology becomes unavailable at acceptable prices, we may need to expend considerable resources integrating alternative third-party technology or developing our own substitute technology.
  • Our international operations expose us to legal, regulatory and other risks that we may not face in the United States.
  • We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act and similar foreign anti-corruption laws.
  • We rely to a significant extent on manufacturing and hardware development vendors with operations in China, Thailand and other foreign jurisdiction. This may reduce our control over the manufacturing activities, create uncertainty with respect to intended cost savings and expose our proprietary assets to greater risk of misappropriation. Changes to these vendor relationships may result in delays or disruptions that could harm our business.
  • Lengthy procurement lead times and unpredictable life cycles and customer demand for some of our products may result in significant inventory risks.
  • Our revenues and operating results depend significantly on our third-party reseller and distribution channels. Our failure to effectively manage our distribution channels for our products and services could adversely affect our revenues and gross margins and therefore our profitability.
  • If we are unable to sell our professional products through retail sales channels, our operating results could be adversely affected.
  • Our products may experience defects that could negatively impact our customer relationships, market reputation and operating results.
  • Our success depends in part on our ability to hire and retain competent and skilled management and technical, sales and other personnel.
  • Our intellectual property and trade secrets are valuable assets that may be subject to third-party infringement and misappropriation.
  • Our results could be materially adversely affected if we are accused of, or found to be, infringing third parties’ intellectual property rights.
  • Potential acquisitions could be difficult to consummate and integrate into our operations, and they could disrupt our business, dilute stockholder value or impair our financial results.
  • Unanticipated changes in our tax provisions, the adoption of new tax legislation or exposure to additional tax liabilities could affect our profitability.
  • We may be subject to litigation, which, if adversely determined, could harm our business and operating results.
  • A natural disaster or catastrophic event may significantly limit our ability to conduct business as normal and harm our business.
  • Economic conditions and regulatory changes leading up to and following the United Kingdom’s scheduled exit from the European Union could have a material adverse effect on our business and results of operations.
  • If we are not able to generate and maintain adequate liquidity our ability to operate our business could be adversely affected.
  • We may not be able to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives.
  • Restrictions in the Financing Agreement may limit our activities.
  • Our substantial indebtedness could adversely affect our business, cash flow and results of operations.
  • We recognized a significant amount of revenue in recent years due to the amortization of deferred revenue attributable to transactions occurring in the past. The reduction in deferred revenues resulted in increased revenue and gross margin and our reported net income in prior years. Revenue from the amortization of deferred revenue will not recur to the same extent in future periods; as a result, there are no assurances that we will be able to report net income in future periods. In addition, as less revenue is recognized from deferred revenue amortization and we have adopted a new accounting standard for revenue recognition, we may experience greater volatility in our quarterly and annual operating results.
  • Our revenues and operating results are difficult to predict and may fluctuate from period to period.
  • Our revenue backlog estimates are based on certain assumptions and are subject to unexpected adjustments and cancellations and backlog orders may not be timely converted to revenues in any particular fiscal period, if at all, or be indicative of our actual operating results for any future period.
  • Fluctuations in foreign exchange rates may result in short-term currency exchange losses and could adversely affect our revenues from foreign markets and our manufacturing costs in the long term.
  • Global economic weakness and uncertainty could adversely affect our revenues, gross margins and expenses.
  • The use of cash to satisfy our conversion obligation under the Notes may adversely affect our liquidity, and we may not have the ability to raise the funds necessary to settle conversions in cash or to repurchase the Notes upon a fundamental change. The agreements governing our other indebtedness may contain limitations on our ability to pay cash upon conversion or repurchase of the Notes.
  • The Notes mature in June 2020. Under applicable accounting rules, if the Notes are not converted or repaid prior to August 2019, our financial condition and operating results could be adversely affected.
  • Our failure to repurchase Notes or pay any cash upon conversion of the Notes would constitute a default under the indenture governing the Notes, and could cause defaults under our other or future indebtedness.
  • The capped call transaction may affect the trading price of our common stock.
  • The market price of our common stock has been and may continue to be volatile.
  • Delaware law and our charter documents may impede or discourage a takeover, which could reduce the market price of our common stock.
Management Discussion
  • We develop, market, sell, and support software and integrated solutions for video and audio content creation, management and distribution. We are a leading technology provider that powers the media and entertainment industry. We do this by providing an open and efficient platform for digital media, along with a comprehensive set of tools and workflow solutions. Our solutions are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communications departments; and by independent video and audio creative professionals, as well as aspiring professionals. Projects produced using our tools, platform and ecosystem include feature films, television programming, live events, news broadcasts, sports productions, commercials, music, video and other digital media content. With over one million creative users and thousands of enterprise clients relying on our technology platforms and solutions around the world, Avid enables the industry to thrive in today’s connected media and entertainment world.
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