Avid 2011 Revenue Down

9 Feb

SCRI's NewsBriefs

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Avid reported that revenues for 2011 were $677.9 million, compared to revenues of $678.5 million for the same period in 2010. This continues the downward trend in reported annual revenues since 2007.
Year Annual $M
2011     677.9
2010     678.5
2009     629.0
2008     844.9
2007     929.6
2006     910.6
Gary Greenfield, chairman and CEO of Avid looking for some positive numbers, stated that “For the quarter, we reported positive GAAP net income for the first time since 2007, positive cash flow from operations and the highest gross margin as a percent of revenue since 2005. ”
Avid claims that the net profit is a result of the prior cost cutting measure and layoffs perviously announced (600 people over the last four years) as well as winning market share from Apple’s since the   introduction of FCP-X (purportedly 6,000 FCP users).

However it should be noted that Apple’s introduction of the new version of FCP-X has gone a long way to appease many previously disgruntled loyal FCP users. Avid has also broadened its target market by going after Ipad users with the release of Avid  Studio for IPad.  Adobe is offering deep discounts. The Non-Linear Editing market continues to evolve and competition continues to be fierce.

Avid CFO Ken Sexton said he expects the company’s 2012 revenue to grow in the “low single digits” driven by growth from media enterprise customers.

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