Avid Q1 Pro Editors Revenue Down 30%

28 Apr

SCRI's NewsBriefs

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Avid confirmed the Q1 data released earlier this month (Avid Downward Trend Continues), that overall revenues were lower than a year ago — $152.1 million for the three-month period ended March 31, 2012, compared to $166.3 million for the same period in 2011. The GAAP net loss for the first quarter was $15.6 million, or $0.40 per share, compared to a GAAP net loss of $5.1 million, or $0.13 per share, in the first quarter of 2011.
“Revenues were down from last year primarily related to the creative enthusiast portion of our business”.
In the analyst conference call, CEO Gary Greenfield said that the majority of the “creative enthusiast” segment was related to audio products but that the consumer enthusiast sector experienced double digit declines in Q1 as well, in spite of the favorable reviews for the new Avid Studio App. for the IPad.
In response to a question from an analyst at Piper Jaffrey, Avid execs stated that while Pro Video Editors unit volume is up, revenue for this category is down 30% in Q1. The company expects sometime this year for this category to be greater than fifty percent software based.
Ken Sexton, Avid’s CFO, stated in the call that the company expects 2012 revenue to be “relatively flat” and that the company expects to “trim” its product line. Avid revenue is at its lowest point in years at $678 million, well below that in 2007 of $930 million (see table below).
Avid had earlier this year 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.
A comment from the analyst at JP Morgan questioned the company saying that “the stock (Avid) is not showing anything over the last ten years or so and that he is surprised that the company (Avid) is not doing more to get sustainable profitability rather than to just aspire to it”
Avid Annual Revenues
Year  Annual $M
2011     677.9
2010     678.5
2009     629.0
2008     844.9
2007     929.6
2006     910.6

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