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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Avid Technology Inc | NASDAQ:AVID | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 27.04 | 27.04 | 27.30 | 0 | 01:00:00 |
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(Mark One)
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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended March 31, 2016
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OR
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from __________ to __________
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Delaware
(State or Other Jurisdiction of
Incorporation or Organization)
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04-2977748
(I.R.S. Employer
Identification No.)
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Large Accelerated Filer
¨
Non-accelerated Filer
¨
(Do not check if smaller reporting company)
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Accelerated Filer
x
Smaller Reporting Company
¨
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Page
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•
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our ability to successfully implement our
Avid Everywhere
strategic plan and other strategic initiatives, including our cost saving strategies;
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•
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our ability to develop, market and sell new products and services;
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•
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anticipated trends relating to our sales, financial condition or results of operations, including our shift to a recurring revenue model and complex enterprise sales with elongated sales cycles;
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•
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our ability to achieve our goal of expanding our market positions;
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•
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the anticipated performance of our products;
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•
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our business strategies and market positioning;
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•
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our ability to successfully consummate acquisitions, or investment transactions and successfully integrate acquired businesses including the acquisition of Orad Hi-Tech Ltd (“Orad”), into our operations;
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•
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our anticipated benefits and synergies from and the anticipated financial impact of any acquired business (including Orad);
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•
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the anticipated trends and developments in our markets and the success of our products in these markets;
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•
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our ability to mitigate and remediate effectively the material weaknesses in our internal control over financial reporting, and the expected timing thereof;
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•
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our capital resources and the adequacy thereof;
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•
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our ability to service our debt and meet the obligations thereunder, including our ability to satisfy our conversion and repurchase obligations under our convertible notes due 2020;
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•
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the outcome, impact, costs and expenses of any litigation or government inquiries to which we are or become subject;
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•
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the effect of the continuing worldwide macroeconomic uncertainty on our business and results of operation;
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•
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the expected timing of recognition of revenue backlog as revenue, and the timing of recognition of revenues from subscription offerings;
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•
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estimated asset and liability values and amortization of our intangible assets;
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•
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our compliance with covenants contained in the agreements governing our indebtedness;
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•
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changes in inventory levels;
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•
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seasonal factors;
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•
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plans regarding repatriation of foreign earnings;
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•
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fluctuations in foreign exchange and interest rates; and
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•
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the risk of restatement of our financial statements.
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ITEM 1.
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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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Three Months Ended
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||||||
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March 31,
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||||||
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2016
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|
2015
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||||
Net revenues:
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|
||||
Products
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$
|
84,509
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|
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$
|
80,029
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Services
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59,038
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39,557
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||
Total net revenues
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143,547
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119,586
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Cost of revenues:
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||||
Products
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27,124
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31,797
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Services
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14,410
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15,695
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Amortization of intangible assets
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1,950
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|
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—
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Total cost of revenues
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43,484
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47,492
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Gross profit
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100,063
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72,094
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||||
Operating expenses:
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||||
Research and development
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21,404
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23,173
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Marketing and selling
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31,619
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28,045
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General and administrative
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17,730
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19,387
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Amortization of intangible assets
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786
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374
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Restructuring costs, net
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2,777
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—
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Total operating expenses
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74,316
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70,979
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||||
Operating income
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25,747
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|
1,115
|
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Interest income
|
—
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|
34
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|
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Interest expense
|
(4,231
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)
|
|
(372
|
)
|
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Other income (expense), net
|
48
|
|
|
(385
|
)
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Income before income taxes
|
21,564
|
|
|
392
|
|
||
Provision for income taxes
|
635
|
|
|
561
|
|
||
Net income (loss)
|
$
|
20,929
|
|
|
$
|
(169
|
)
|
|
|
|
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||||
Net income (loss) per common share – basic and diluted
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$
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0.53
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$
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0.00
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|
||||
Weighted-average common shares outstanding – basic
|
39,566
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|
|
39,387
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Weighted-average common shares outstanding – diluted
|
39,640
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|
39,387
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Three Months Ended
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||||||
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March 31,
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||||||
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2016
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|
2015
|
||||
Net income (loss)
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$
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20,929
|
|
|
$
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(169
|
)
|
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|
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|
||||
Other comprehensive income (loss):
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||||
Foreign currency translation adjustments
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3,245
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(5,881
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)
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Comprehensive income (loss)
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$
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24,174
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$
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(6,050
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)
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March 31,
2016 |
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December 31,
2015 |
||||
ASSETS
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Current assets:
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||||
Cash and cash equivalents
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$
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87,830
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$
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17,902
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Accounts receivable, net of allowances of $8,816 and $9,226 at March 31, 2016 and December 31, 2015, respectively
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43,732
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58,807
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Inventories
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51,652
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48,073
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Prepaid expenses
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10,475
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6,548
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Other current assets
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6,029
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6,119
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Total current assets
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199,718
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137,449
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Property and equipment, net
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36,664
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35,481
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Intangible assets, net
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30,494
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33,219
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Goodwill
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32,643
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32,643
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Long-term deferred tax assets, net
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2,070
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2,011
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Other long-term assets
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10,174
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7,123
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Total assets
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$
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311,763
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$
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247,926
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||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT
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||||
Current liabilities:
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Accounts payable
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$
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31,325
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$
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45,511
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Accrued compensation and benefits
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27,974
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28,124
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Accrued expenses and other current liabilities
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36,078
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35,354
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Income taxes payable
|
588
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|
1,023
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Short-term debt
|
—
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5,000
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Deferred revenues
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178,959
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189,887
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Total current liabilities
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274,924
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304,899
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Long-term debt
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192,130
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95,950
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Long-term deferred tax liabilities, net
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2,672
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|
3,443
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Long-term deferred revenues
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129,463
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|
158,495
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Other long-term liabilities
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16,179
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|
|
14,711
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Total liabilities
|
615,368
|
|
|
577,498
|
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||||
Contingencies (Note 8)
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||||
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|
||||
Stockholders’ deficit:
|
|
|
|
||||
Common stock
|
423
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|
|
423
|
|
||
Additional paid-in capital
|
1,055,358
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|
1,055,838
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|
||
Accumulated deficit
|
(1,298,389
|
)
|
|
(1,319,318
|
)
|
||
Treasury stock at cost
|
(56,063
|
)
|
|
(58,336
|
)
|
||
Accumulated other comprehensive loss
|
(4,934
|
)
|
|
(8,179
|
)
|
||
Total stockholders’ deficit
|
(303,605
|
)
|
|
(329,572
|
)
|
||
Total liabilities and stockholders’ deficit
|
$
|
311,763
|
|
|
$
|
247,926
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income (loss)
|
$
|
20,929
|
|
|
$
|
(169
|
)
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
6,347
|
|
|
4,051
|
|
||
Provision (recovery) for doubtful accounts
|
319
|
|
|
(206
|
)
|
||
Stock-based compensation expense
|
2,098
|
|
|
2,461
|
|
||
Non-cash interest expense
|
3,878
|
|
|
—
|
|
||
Unrealized foreign currency transaction losses (gains)
|
2,936
|
|
|
(6,690
|
)
|
||
(Benefit) provision for deferred taxes
|
(784
|
)
|
|
5
|
|
||
Changes in operating assets and liabilities, net of effects from acquisitions:
|
|
|
|
||||
Accounts receivable
|
14,800
|
|
|
3,097
|
|
||
Inventories
|
(3,579
|
)
|
|
8,276
|
|
||
Prepaid expenses and other current assets
|
(4,061
|
)
|
|
(2,510
|
)
|
||
Accounts payable
|
(14,216
|
)
|
|
(3,440
|
)
|
||
Accrued expenses, compensation and benefits and other liabilities
|
(960
|
)
|
|
1,627
|
|
||
Income taxes payable
|
1,093
|
|
|
267
|
|
||
Deferred revenues
|
(40,009
|
)
|
|
(2,139
|
)
|
||
Net cash (used in) provided by operating activities
|
(11,209
|
)
|
|
4,630
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of property and equipment
|
(4,518
|
)
|
|
(2,940
|
)
|
||
Increase in other long-term assets
|
(8
|
)
|
|
(13
|
)
|
||
Increase in restricted cash
|
(4,544
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(9,070
|
)
|
|
(2,953
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from long-term debt
|
100,000
|
|
|
—
|
|
||
Proceeds from the issuance of common stock under employee stock plans
|
—
|
|
|
719
|
|
||
Common stock repurchases for tax withholdings on net settlement of equity awards
|
(307
|
)
|
|
(793
|
)
|
||
Proceeds from revolving credit facilities
|
25,000
|
|
|
8,000
|
|
||
Payments on revolving credit facilities
|
(30,000
|
)
|
|
(8,000
|
)
|
||
Payments for credit facility issuance costs
|
(4,919
|
)
|
|
(582
|
)
|
||
Net cash provided by (used in) financing activities
|
89,774
|
|
|
(656
|
)
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
433
|
|
|
(586
|
)
|
||
Net increase in cash and cash equivalents
|
69,928
|
|
|
435
|
|
||
Cash and cash equivalents at beginning of period
|
17,902
|
|
|
25,056
|
|
||
Cash and cash equivalents at end of period
|
$
|
87,830
|
|
|
$
|
25,491
|
|
Supplemental information:
|
|
|
|
||||
Cash paid for income taxes, net of refunds
|
$
|
600
|
|
|
$
|
279
|
|
Cash paid for interest
|
353
|
|
|
372
|
|
||
Non-cash financing activities:
|
|
|
|
||||
Issuance costs for long-term debt
|
$
|
363
|
|
|
$
|
—
|
|
1.
|
FINANCIAL INFORMATION
|
•
|
the pricing established by management when setting prices for deliverables that are intended to be sold on a standalone basis;
|
•
|
contractually stated prices for deliverables that are intended to be sold on a standalone basis;
|
•
|
the pricing of standalone sales that may not qualify as VSOE of fair value due to limited volumes or variation in prices; and
|
•
|
other pricing factors, such as the geographical region in which the products are sold and expected discounts based on the customer size and type.
|
2.
|
NET INCOME PER SHARE
|
|
March 31, 2016
|
|
March 31, 2015
|
||
Options
|
4,313
|
|
|
5,452
|
|
Non-vested restricted stock units
|
786
|
|
|
1,352
|
|
Anti-dilutive potential common shares
|
5,099
|
|
|
6,804
|
|
3.
|
ACQUISITION
|
4.
|
FAIR VALUE MEASUREMENTS
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
March 31,
2016 |
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
|
|
Significant
Other
Observable
Inputs (Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation assets
|
$
|
2,651
|
|
|
$
|
481
|
|
|
$
|
2,170
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
December 31, 2015
|
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
|
|
Significant
Other
Observable
Inputs (Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation assets
|
$
|
3,617
|
|
|
$
|
572
|
|
|
$
|
3,045
|
|
|
$
|
—
|
|
5.
|
INVENTORIES
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
Raw materials
|
$
|
10,442
|
|
|
$
|
9,594
|
|
Work in process
|
287
|
|
|
256
|
|
||
Finished goods
|
40,923
|
|
|
38,223
|
|
||
Total
|
$
|
51,652
|
|
|
$
|
48,073
|
|
6.
|
INTANGIBLE ASSETS AND GOODWILL
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||
Completed technologies and patents
|
$
|
58,359
|
|
|
$
|
(33,172
|
)
|
|
$
|
25,187
|
|
|
$
|
58,032
|
|
|
$
|
(30,902
|
)
|
|
$
|
27,130
|
|
Customer relationships
|
54,804
|
|
|
(49,543
|
)
|
|
5,261
|
|
|
54,656
|
|
|
(48,767
|
)
|
|
5,889
|
|
||||||
Trade names
|
1,346
|
|
|
(1,300
|
)
|
|
46
|
|
|
1,346
|
|
|
(1,146
|
)
|
|
200
|
|
||||||
Capitalized software costs
|
4,911
|
|
|
(4,911
|
)
|
|
—
|
|
|
4,911
|
|
|
(4,911
|
)
|
|
—
|
|
||||||
Total
|
$
|
119,420
|
|
|
$
|
(88,926
|
)
|
|
$
|
30,494
|
|
|
$
|
118,945
|
|
|
$
|
(85,726
|
)
|
|
$
|
33,219
|
|
7.
|
OTHER LONG-TERM LIABILITIES
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
Deferred rent
|
$
|
7,643
|
|
|
$
|
6,755
|
|
Accrued restructuring
|
568
|
|
|
647
|
|
||
Income tax payable
|
1,543
|
|
|
—
|
|
||
Deferred compensation
|
6,425
|
|
|
7,309
|
|
||
Total
|
$
|
16,179
|
|
|
$
|
14,711
|
|
8.
|
CONTINGENCIES
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Accrual balance at beginning of year
|
$
|
2,234
|
|
|
$
|
2,792
|
|
Accruals for product warranties
|
455
|
|
|
502
|
|
||
Costs of warranty claims
|
(455
|
)
|
|
(820
|
)
|
||
Accrual balance at end of period
|
$
|
2,234
|
|
|
$
|
2,474
|
|
9.
|
RESTRUCTURING COSTS AND ACCRUALS
|
|
Employee-
Related
|
|
Facilities/ Other-
Related
|
|
Total
|
||||||
Accrual balance as of December 31, 2015
|
$
|
5,509
|
|
|
$
|
1,671
|
|
|
$
|
7,180
|
|
New restructuring charges – operating expenses
|
2,777
|
|
|
—
|
|
|
2,777
|
|
|||
Accretion
|
—
|
|
|
66
|
|
|
66
|
|
|||
Cash payments
|
(2,454
|
)
|
|
(327
|
)
|
|
(2,781
|
)
|
|||
Foreign exchange impact on ending balance
|
(12
|
)
|
|
12
|
|
|
—
|
|
|||
Accrual balance as of March 31, 2016
|
$
|
5,820
|
|
|
$
|
1,422
|
|
|
$
|
7,242
|
|
10.
|
PRODUCT AND GEOGRAPHIC INFORMATION
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Video products and solutions net revenues
|
$
|
34,569
|
|
|
$
|
47,117
|
|
Audio products and solutions net revenues
|
49,940
|
|
|
32,912
|
|
||
Products and solutions net revenues
|
84,509
|
|
|
80,029
|
|
||
Services net revenues
|
59,038
|
|
|
39,557
|
|
||
Total net revenues
|
$
|
143,547
|
|
|
$
|
119,586
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Revenues:
|
|
|
|
||||
United States
|
$
|
55,042
|
|
|
$
|
45,162
|
|
Other Americas
|
10,738
|
|
|
7,549
|
|
||
Europe, Middle East and Africa
|
55,739
|
|
|
49,253
|
|
||
Asia-Pacific
|
22,028
|
|
|
17,622
|
|
||
Total net revenues
|
$
|
143,547
|
|
|
$
|
119,586
|
|
11.
|
LONG TERM DEBT AND CREDIT AGREEMENT
|
|
March 31, 2016
|
||
Principal amount of notes
|
$
|
125,000
|
|
Original debt discount due to:
|
|
||
Allocation of proceeds to equity
|
(28,298
|
)
|
|
Allocation of issuance costs to debt
|
(3,641
|
)
|
|
Accumulated accretion of discount to interest expense
|
4,248
|
|
|
Net carrying value
|
$
|
97,309
|
|
|
Time-Based Shares
|
Performance-Based Shares
|
Total Shares
|
Weighted-
Average
Exercise
Price
|
Weighted-
Average
Remaining
Contractual
Term (years)
|
Aggregate
Intrinsic
Value
(in thousands)
|
|||
Options outstanding as of January 1, 2016
|
4,345,334
|
|
—
|
|
4,345,334
|
|
$10.68
|
|
|
Forfeited or canceled
|
(62,766
|
)
|
—
|
|
(62,766
|
)
|
$15.78
|
|
|
Options outstanding as of March 31, 2016
|
4,282,568
|
|
—
|
|
4,282,568
|
|
$10.61
|
3.57
|
$0
|
Options vested as of March 31, 2016 or expected to vest
|
|
|
4,245,004
|
|
$10.63
|
3.55
|
$0
|
||
Options exercisable as of March 31, 2016
|
|
|
3,729,795
|
|
$11.06
|
3.35
|
$0
|
|
Non-Vested Restricted Stock Units
|
||||||||
|
Time-Based Shares
|
Performance-Based Shares
|
Total Shares
|
Weighted-
Average
Grant-Date
Fair Value
|
Weighted-
Average
Remaining
Contractual
Term (years)
|
Aggregate
Intrinsic
Value
(in thousands)
|
|||
Non-vested as of January 1, 2016
|
905,934
|
|
360,074
|
|
1,266,008
|
|
$9.97
|
|
|
Granted
|
546,418
|
|
489,482
|
|
1,035,900
|
|
$7.04
|
|
|
Vested
|
(149,806
|
)
|
—
|
|
(149,806
|
)
|
$13.45
|
|
|
Forfeited
|
(50,917
|
)
|
(41,010
|
)
|
(91,927
|
)
|
$6.28
|
|
|
Non-vested as of March 31, 2016
|
1,251,629
|
|
808,546
|
|
2,060,175
|
|
$8.41
|
1.07
|
$13,906
|
Expected to vest
|
|
|
1,590,942
|
|
$8.48
|
1.02
|
$10,739
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Cost of products revenues
|
$
|
30
|
|
|
$
|
95
|
|
Cost of services revenues
|
149
|
|
|
159
|
|
||
Research and development expenses
|
85
|
|
|
107
|
|
||
Marketing and selling expenses
|
441
|
|
|
690
|
|
||
General and administrative expenses
|
1,393
|
|
|
1,410
|
|
||
|
$
|
2,098
|
|
|
$
|
2,461
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
the pricing established by management when setting prices for deliverables that are intended to be sold on a standalone basis;
|
•
|
contractually stated prices for deliverables that are intended to be sold on a standalone basis;
|
•
|
the pricing of standalone sales that may not qualify as VSOE of fair value due to limited volumes or variation in prices; and
|
•
|
other pricing factors, such as the geographical region in which the products are sold and expected discounts based on the customer size and type.
|
|
Three Months Ended March 31,
|
||||
|
2016
|
|
2015
|
||
Net revenues:
|
|
|
|
||
Product
|
58.9
|
%
|
|
66.9
|
%
|
Services
|
41.1
|
%
|
|
33.1
|
%
|
Total net revenues
|
100.0
|
%
|
|
100.0
|
%
|
Cost of revenues
|
30.3
|
%
|
|
39.7
|
%
|
Gross margin
|
69.7
|
%
|
|
60.3
|
%
|
Operating expenses:
|
|
|
|
||
Research and development
|
14.9
|
%
|
|
19.4
|
%
|
Marketing and selling
|
22.0
|
%
|
|
23.5
|
%
|
General and administrative
|
12.4
|
%
|
|
16.1
|
%
|
Amortization of intangible assets
|
0.6
|
%
|
|
0.3
|
%
|
Restructuring costs, net
|
1.9
|
%
|
|
—
|
%
|
Total operating expenses
|
51.8
|
%
|
|
59.3
|
%
|
Operating income
|
17.9
|
%
|
|
1.0
|
%
|
Interest and other income (expense), net
|
(2.9
|
)%
|
|
(0.6
|
)%
|
Income before income taxes
|
15.0
|
%
|
|
0.4
|
%
|
Provision for income taxes
|
0.4
|
%
|
|
0.4
|
%
|
Net income
|
14.6
|
%
|
|
—
|
%
|
Net Revenues for the Three Months Ended March 31, 2016 and 2015
|
|||||||||||||
(dollars in thousands)
|
|||||||||||||
|
2016
|
|
Change
|
|
2015
|
||||||||
|
Net Revenues
|
|
$
|
|
%
|
|
Net Revenues
|
||||||
Video products and solutions
|
$
|
34,569
|
|
|
$
|
(12,548
|
)
|
|
(26.6)%
|
|
$
|
47,117
|
|
Audio products and solutions
|
49,940
|
|
|
17,028
|
|
|
51.7%
|
|
32,912
|
|
|||
Products and solutions
|
84,509
|
|
|
4,480
|
|
|
5.6%
|
|
80,029
|
|
|||
Services
|
59,038
|
|
|
19,481
|
|
|
49.2%
|
|
39,557
|
|
|||
Total net revenues
|
$
|
143,547
|
|
|
$
|
23,961
|
|
|
20.0%
|
|
$
|
119,586
|
|
|
Three Months Ended March 31,
|
||
|
2016
|
|
2015
|
United States
|
38%
|
|
38%
|
Other Americas
|
8%
|
|
6%
|
Europe, Middle East and Africa
|
39%
|
|
41%
|
Asia-Pacific
|
15%
|
|
15%
|
•
|
procurement of components and finished goods;
|
•
|
assembly, testing and distribution of finished products;
|
•
|
warehousing;
|
•
|
customer support related to maintenance;
|
•
|
royalties for third-party software and hardware included in our products;
|
•
|
amortization of technology; and
|
•
|
providing professional services and training.
|
Costs of Revenues and Gross Profit for the Three Months Ended March 31, 2016 and 2015
|
|||||||||||||
(dollars in thousands)
|
|||||||||||||
|
2016
|
|
Change
|
|
2015
|
||||||||
|
Costs
|
|
$
|
|
%
|
|
Costs
|
||||||
Products
|
$
|
27,124
|
|
|
$
|
(4,673
|
)
|
|
(14.7)%
|
|
$
|
31,797
|
|
Services
|
14,410
|
|
|
(1,285
|
)
|
|
(8.2)%
|
|
15,695
|
|
|||
Amortization of intangible assets
|
1,950
|
|
|
1,950
|
|
|
—%
|
|
—
|
|
|||
Total cost of revenues
|
$
|
43,484
|
|
|
$
|
(4,008
|
)
|
|
(8.4)%
|
|
$
|
47,492
|
|
|
|
|
|
|
|
|
|
||||||
Gross profit
|
$
|
100,063
|
|
|
$
|
27,969
|
|
|
38.8%
|
|
$
|
72,094
|
|
Operating Expenses and Operating Income for the Three Months Ended March 30, 2016 and 2015
|
|||||||||||||
(dollars in thousands)
|
|||||||||||||
|
2016
|
|
Change
|
|
2015
|
||||||||
|
Expenses
|
|
$
|
|
%
|
|
Expenses
|
||||||
Research and development
|
$
|
21,404
|
|
|
$
|
(1,769
|
)
|
|
(7.6)%
|
|
$
|
23,173
|
|
Marketing and selling
|
31,619
|
|
|
3,574
|
|
|
12.7%
|
|
28,045
|
|
|||
General and administrative
|
17,730
|
|
|
(1,657
|
)
|
|
(8.5)%
|
|
19,387
|
|
|||
Amortization of intangible assets
|
786
|
|
|
412
|
|
|
110.2%
|
|
374
|
|
|||
Restructuring costs, net
|
2,777
|
|
|
2,777
|
|
|
—%
|
|
—
|
|
|||
Total operating expenses
|
$
|
74,316
|
|
|
$
|
3,337
|
|
|
4.7%
|
|
$
|
70,979
|
|
|
|
|
|
|
|
|
|
||||||
Operating income
|
$
|
25,747
|
|
|
$
|
24,632
|
|
|
2,209.1%
|
|
$
|
1,115
|
|
Change in R&D Expenses for the Three Months Ended March 31, 2016 and 2015
|
||||||
(dollars in thousands)
|
||||||
|
2016 Decrease
From 2015
|
|||||
|
$
|
|
%
|
|||
Computer hardware and supplies
|
$
|
(966
|
)
|
|
(63.9
|
)%
|
Personnel-related
|
(533
|
)
|
|
(4.2
|
)%
|
|
Consulting and outside services
|
(103
|
)
|
|
(2.6
|
)%
|
|
Facilities and information technology
|
(87
|
)
|
|
(2.1
|
)%
|
|
Other
|
(80
|
)
|
|
(10.7
|
)%
|
|
Total research and development expenses increase
|
$
|
(1,769
|
)
|
|
(7.6
|
)%
|
Provision for Income Taxes for the Three Months Ended March 31, 2016 and 2015
|
|||||||||||||
(dollars in thousands)
|
|||||||||||||
|
2016
|
|
Change
|
|
2015
|
||||||||
|
Provision
|
|
$
|
|
%
|
|
Provision
|
||||||
Provision for income taxes
|
$
|
635
|
|
|
$
|
74
|
|
|
13.2%
|
|
$
|
561
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Net cash (used in) provided by operating activities
|
$
|
(11,209
|
)
|
|
$
|
4,630
|
|
Net cash used in investing activities
|
(9,070
|
)
|
|
(2,953
|
)
|
||
Net cash provided by (used in) financing activities
|
89,774
|
|
|
(656
|
)
|
||
Effect of foreign currency exchange rates on cash and cash equivalents
|
433
|
|
|
(586
|
)
|
||
Net increase in cash and cash equivalents
|
$
|
69,928
|
|
|
$
|
435
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 6.
|
EXHIBITS
|
|
|
AVID TECHNOLOGY, INC.
|
||
|
|
(Registrant)
|
||
|
|
|
|
|
Date:
|
May 4, 2016
|
By:
|
/s/ John W. Frederick
|
|
|
|
Name:
|
John W. Frederick
|
|
|
|
Title:
|
Executive Vice President, Chief Financial Officer and Chief Administrative Officer
|
|
|
|
|
|
|
|
Incorporated by Reference
|
||||
Exhibit
No.
|
|
Description
|
|
Filed with
this Form
10-Q
|
|
Form or
Schedule
|
|
SEC Filing
Date
|
|
SEC File
Number
|
31.1
|
|
Certification of Principal Executive Officer pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
X
|
|
|
|
|
|
|
31.2
|
|
Certification of Principal Financial Officer pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
X
|
|
|
|
|
|
|
32.1
|
|
Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
X
|
|
|
|
|
|
|
*100.INS
|
|
XBRL Instance Document
|
|
X
|
|
|
|
|
|
|
*100.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
X
|
|
|
|
|
|
|
*100.CAL
|
|
XBRL Taxonomy Calculation Linkbase Document
|
|
X
|
|
|
|
|
|
|
*100.DEF
|
|
XBRL Taxonomy Definition Linkbase Document
|
|
X
|
|
|
|
|
|
|
*100.LAB
|
|
XBRL Taxonomy Label Linkbase Document
|
|
X
|
|
|
|
|
|
|
*100.PRE
|
|
XBRL Taxonomy Presentation Linkbase Document
|
|
X
|
|
|
|
|
|
|
*
|
Pursuant to Rule 406T of Regulation S-T, XBRL (Extensible Business Reporting Language) information is deemed not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934 and otherwise is not subject to liability under these sections.
|
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