Avid® (NASDAQ: AVID), a leading technology provider that powers the
media and entertainment industry, today announced its second
quarter 2019 financial results, provided guidance for the third
quarter of 2019, reaffirmed full-year 2019 guidance and introduced
new Non-GAAP Net Income Per Share guidance for full-year 2019.
Second Quarter 2019 Financial and Business
Highlights
- Revenue was $98.7 million, up slightly year-over-year from
$98.6 million.
- Gross margin was 57.4%, up 30 basis points
year-over-year. Non-GAAP Gross Margin was 59.4%, up 20 basis
points year-over-year.
- Operating expenses were $54.1 million, a decrease of 7%
year-over-year. Non-GAAP Operating Expenses were $51.8
million, a decrease of 8% year-over-year.
- Operating income was $2.6 million, up from operating loss of
($2.1) million in Q2 2018. Non-GAAP Operating Income was $6.9
million, an increase of 188% year-over-year.
- Adjusted EBITDA was $9.4 million, an increase of 78%
year-over-year. Adjusted EBITDA Margin was 9.5%, up 410 basis
points year-over-year.
- GAAP net loss per common share was ($0.25), compared to net
loss per common share of ($0.20) in Q2 2018. Non-GAAP Net
Income per Share was $0.02, up from Non-GAAP Net Loss per Share of
($0.10) in Q2 2018.
- Net cash used in operating activities was ($2.7) million,
compared to Net cash used in operating activities of ($5.9) million
in Q2 2018.
- Free Cash Flow was ($4.5) million, an improvement of $4.2
million compared to Free Cash Flow of ($8.7) million in Q2
2018.
- Software revenue from subscriptions increased 17%
year-over-year with approximately 147,000 cloud-enabled software
subscriptions at the end of Q2 2019.
- Revenue through the Company’s e-commerce activities was up 19%
year-over-year.
- Recurring Revenue was 58% of the Company’s revenue in the
twelve months ending June 30, 2019, up from 51% in the twelve
months ending June 30, 2018.
- Annual Contract Value was $246 million at the end of Q2 2019,
up slightly from $245 million at the end of Q2 2018.
“Despite some slight revenue headwinds in the second quarter
related to our supply chain transition, I am pleased with our
overall performance in the first half of 2019 as our results are in
line with our plans. We are better positioned emerging from the
first half than we have been in many years,” said Jeff Rosica, CEO
and President of Avid. “We’re pleased that our strategic plan
is delivering as expected, and that we’re on a good trajectory for
the second half, aided by the delivery of significant new products
to market in the second quarter, including new versions of our
flagship creative tools, MediaCentral platform, and cloud
storage.”
“While we continue to see year-over-year improvements in gross
margin, Adjusted EBITDA, and Free Cash Flow, we faced certain
headwinds during Q2 related to our supply chain transition that
brought our Q2 results below expectations,” commented Ken Gayron,
Executive Vice President and Chief Financial Officer of Avid.
Mr. Gayron added, “That said, we continue to see the benefits from
our Smart Savings initiatives which have enhanced our profitability
and cash flow. We are well positioned as we enter the second half
of 2019 to see continued year-over-year improvement in our key
financial metrics.” Mr. Gayron further added, “We are
introducing Non-GAAP Net Income Per Share guidance for full-year
2019 to provide more information to investors to evaluate the
progress we are making in our business model.”
Explanations regarding our use of non-GAAP financial measures
and operational metrics and related definitions, and
reconciliations of our GAAP and non-GAAP measures, are provided in
the sections below entitled "Non-GAAP Financial Measures and
Operational Metrics" and "Reconciliations of GAAP Financial
Measures to Non-GAAP Financial Measures".
Third Quarter and Full-Year 2019 Guidance
For the third quarter of 2019, Avid is providing Revenue and
Adjusted EBITDA guidance. Avid is also reaffirming its
guidance for Revenue, Adjusted EBITDA and Free Cash Flow for
full-year 2019 and introducing Non-GAAP Net Income Per Share
guidance for full-year 2019.
|
|
|
($ millions, except per share amounts) |
Q3 2019 |
Full-Year 2019 |
Revenue |
$101.0 - $109.0 |
$420 - $430 |
Adjusted EBITDA |
$13.5 - $18.5 |
$60 - $65 |
Free Cash Flow |
|
$12 - $17 |
Non-GAAP Net Income Per Share |
|
$0.60 - $0.72 |
|
|
|
All guidance presented by the Company is inherently uncertain
and subject to numerous risks and uncertainties. Avid’s actual
future results of operations could differ materially from those
shown in the table above. For a discussion of some of the key
assumptions underlying the guidance, as well as the key risks and
uncertainties associated with these forward-looking statements,
please see “Forward-Looking Statements” below as well as the Avid
Technology Q2 2019 Business Update presentation posted on Avid’s
Investor Relations website http://ir.avid.com.
Conference Call
Avid will host a conference call to discuss its financial
results for the second quarter on Monday, August 5, 2019 at 5:00
p.m. ET. The call will be open to the public and can be accessed by
dialing 323-794-2551 and referencing confirmation code 2594566. You
may also access the presentation slides and listen to the call on
the Avid Investor Relations website. To listen via the website, go
to the events tab at ir.avid.com for complete details prior to the
start of the conference call. A replay of the call will also be
available for a limited time on the Avid Investor Relations website
shortly after the completion of the call.
Non-GAAP Financial Measures and Operational
Metrics
Avid includes non-GAAP financial measures in this press release,
including Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow,
Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating
Expenses, Non-GAAP Operating Income, Non-GAAP Net Income (Loss) and
Non-GAAP Net Income (Loss) per Share. The Company also includes the
operational metrics of Bookings, Cloud-enabled software
subscriptions, Recurring Revenue and Annual Contract Value in this
release. Avid believes the non-GAAP financial measures and
operational metrics provided in this release provide helpful
information to investors with respect to evaluating the Company’s
performance. Unless noted, all financial and operating information
is reported based on actual exchange rates. Definitions of the
non-GAAP financial measures and operational metrics are included in
our Form 8-K filed today. Reconciliations of the non-GAAP financial
measures in this release to the Company's comparable GAAP financial
measures for the periods presented are set forth below and are also
included in the supplemental financial and operational data sheet
available on our investor relations webpage at ir.avid.com, which
also includes definitions of all operational metrics.
The earnings release also includes forward-looking non-GAAP
financial measures, including Adjusted EBITDA, Free Cash Flow, and
Non-GAAP Net Income Per Share. Reconciliations of these
forward-looking non-GAAP financial measures are not included in the
earnings release due to the high variability and difficulty in
making accurate forecasts and projections of some of the excluded
information, together with some of the excluded information not
being ascertainable or accessible at this time. As a result, the
Company is unable to quantify certain amounts that would be
required to be included in the most directly comparable GAAP
financial measure without unreasonable efforts.
Forward-Looking Statements
Certain information provided in this press release, including
the tables attached hereto, include forward-looking statements that
involve risks and uncertainties, including projections and
statements about our anticipated plans, objectives, expectations
and intentions. Among other things, this press release includes
estimated results of operations for the three months ending
September 30, 2019 and the year ending December 31, 2019, which
estimates are based on a variety of assumptions about key factors
and metrics that will determine our future results of operations,
including, for example, anticipated market uptake of new products
and market-based cost inflation. Other forward-looking statements
include, without limitation, statements based upon or otherwise
incorporating judgments or estimates relating to future performance
such as future operating results and expenses; earnings; backlog;
revenue backlog conversion rate; product mix and free cash flow;
Recurring Revenue and Annual Contract Value; our future strategy
and business plans; our product plans, including products under
development, such as cloud and subscription based offerings; our
ability to raise capital and our liquidity. The projected future
results of operations, and the other forward-looking statements in
this release, are based on current expectations as of the date of
this release and subject to known and unknown risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements, including but
not limited to the effect on our sales, operations and financial
performance resulting from: our liquidity; our ability to execute
our strategic plan, and meet customer needs; our ability to retain
and hire key personnel; our ability to produce innovative products
in response to changing market demand, particularly in the media
industry; our ability to successfully accomplish our product
development plans; competitive factors; history of losses;
fluctuations in our revenue based on, among other things, our
performance and risks in particular geographies or markets; our
higher indebtedness and ability to service it and meet the
obligations thereunder; restrictions in our credit facilities; our
move to a subscription model and related effect on our revenues and
ability to predict future revenues; fluctuations in subscription
and maintenance renewal rates; elongated sales cycles; fluctuations
in foreign currency exchange rates; seasonal factors; adverse
changes in economic conditions; variances in our revenue backlog
and the realization thereof; and the possibility of legal
proceedings adverse to our company. Moreover, the business may be
adversely affected by future legislative, regulatory or other
changes, including tax law changes, as well as other economic,
business and/or competitive factors. The risks included above are
not exhaustive. Other factors that could adversely affect our
business and prospects are set forth in our public filings with the
SEC. Forward-looking statements contained herein are made only as
to the date of this press release and we undertake no obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by law.
About Avid
Avid delivers the most open and efficient media platform,
connecting content creation with collaboration, asset protection,
distribution, and consumption. Avid’s preeminent customer community
uses Avid’s comprehensive tools and workflow solutions to create,
distribute and monetize the most watched, loved and listened to
media in the world—from prestigious and award-winning feature films
to popular television shows, news programs and televised sporting
events, and celebrated music recordings and live concerts. With the
most flexible deployment and pricing options, Avid’s
industry-leading solutions include Media Composer®, Pro Tools®,
Avid NEXIS®, MediaCentral®, iNEWS®, AirSpeed®, Sibelius®, Avid
VENUE™, Avid FastServe®™, Maestro™, and PlayMaker™. For more
information about Avid solutions and services, visit www.avid.com,
connect with Avid on Facebook, Instagram, Twitter, YouTube,
LinkedIn, or subscribe to Avid Blogs.
© 2019 Avid Technology, Inc. All rights reserved. Avid, the Avid
logo, Avid NEXIS, Avid FastServe, AirSpeed, iNews, Maestro,
MediaCentral, Media Composer, NewsCutter, PlayMaker, Pro Tools,
Avid VENUE, and Sibelius are trademarks or registered trademarks of
Avid Technology, Inc. or its subsidiaries in the United States
and/or other countries. All other trademarks are the property of
their respective owners. Product features, specifications, system
requirements and availability are subject to change without
notice.
Contacts |
|
|
Investor contact: |
PR contact: |
Whit Rappole |
Jim Sheehan |
Avid |
Avid |
ir@avid.com |
jim.sheehan@avid.com |
(978) 275-2032 |
(978) 640-3152 |
|
|
|
AVID
TECHNOLOGY, INC. |
Condensed
Consolidated Statements of Operations |
(unaudited - in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Net revenues: |
|
|
|
|
|
|
|
Products |
$ |
50,326 |
|
|
$ |
46,379 |
|
|
$ |
104,722 |
|
|
$ |
92,789 |
|
Services |
|
48,375 |
|
|
|
52,236 |
|
|
|
97,298 |
|
|
|
103,763 |
|
Total net revenues |
|
98,701 |
|
|
|
98,615 |
|
|
|
202,020 |
|
|
|
196,552 |
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
Products |
|
28,058 |
|
|
|
26,347 |
|
|
|
55,658 |
|
|
|
52,642 |
|
Services |
|
12,195 |
|
|
|
13,986 |
|
|
|
24,682 |
|
|
|
27,971 |
|
Amortization of intangible assets |
|
1,788 |
|
|
|
1,950 |
|
|
|
3,738 |
|
|
|
3,900 |
|
Total cost of revenues |
|
42,041 |
|
|
|
42,283 |
|
|
|
84,078 |
|
|
|
84,513 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
56,660 |
|
|
|
56,332 |
|
|
|
117,942 |
|
|
|
112,039 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
15,180 |
|
|
|
15,985 |
|
|
|
31,465 |
|
|
|
31,670 |
|
Marketing and selling |
|
26,129 |
|
|
|
27,759 |
|
|
|
51,007 |
|
|
|
53,891 |
|
General and administrative |
|
12,721 |
|
|
|
14,041 |
|
|
|
26,509 |
|
|
|
27,996 |
|
Amortization of intangible assets |
|
332 |
|
|
|
363 |
|
|
|
695 |
|
|
|
726 |
|
Restructuring costs, net |
|
(269 |
) |
|
|
268 |
|
|
|
289 |
|
|
|
3,175 |
|
Total operating expenses |
|
54,093 |
|
|
|
58,416 |
|
|
|
109,965 |
|
|
|
117,458 |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
2,567 |
|
|
|
(2,084 |
) |
|
|
7,977 |
|
|
|
(5,419 |
) |
|
|
|
|
|
|
|
|
Interest and other expense,
net |
|
(13,290 |
) |
|
|
(6,278 |
) |
|
|
(18,475 |
) |
|
|
(11,637 |
) |
Loss before income taxes |
|
(10,723 |
) |
|
|
(8,362 |
) |
|
|
(10,498 |
) |
|
|
(17,056 |
) |
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
0 |
|
|
|
144 |
|
|
|
438 |
|
|
|
399 |
|
Net loss |
$ |
(10,723 |
) |
|
$ |
(8,506 |
) |
|
$ |
(10,936 |
) |
|
$ |
(17,455 |
) |
|
|
|
|
|
|
|
|
Net loss per common share -
basic and diluted |
$ |
(0.25 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding - basic and diluted |
|
42,560 |
|
|
|
41,587 |
|
|
|
42,305 |
|
|
|
41,496 |
|
|
|
|
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
Reconciliations of GAAP Financial Measures to Non-GAAP
Financial Measures |
(unaudited - in
thousands) |
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
GAAP
revenue |
|
|
|
|
|
|
|
Total net
revenues |
$ |
98,701 |
|
|
$ |
98,615 |
|
|
$ |
202,020 |
|
|
$ |
196,552 |
|
|
|
|
|
|
|
|
|
Non-GAAP Gross
Profit |
|
|
|
|
|
|
|
GAAP gross
profit |
|
56,660 |
|
|
|
56,332 |
|
|
|
117,942 |
|
|
|
112,039 |
|
Amortization of intangible
assets |
|
1,788 |
|
|
|
1,950 |
|
|
|
3,738 |
|
|
|
3,900 |
|
Stock-based compensation |
|
167 |
|
|
|
74 |
|
|
|
235 |
|
|
|
127 |
|
Non-GAAP Gross
Profit |
$ |
58,615 |
|
|
$ |
58,356 |
|
|
$ |
121,915 |
|
|
$ |
116,066 |
|
Non-GAAP Gross
Margin |
|
59.4 |
% |
|
|
59.2 |
% |
|
|
60.3 |
% |
|
|
59.1 |
% |
|
|
|
|
|
|
|
|
Non-GAAP Operating
Expenses |
|
|
|
|
|
|
|
GAAP operating
expenses |
|
54,093 |
|
|
|
58,416 |
|
|
|
109,965 |
|
|
|
117,458 |
|
Less Amortization of
intangible assets |
|
(332 |
) |
|
|
(363 |
) |
|
|
(695 |
) |
|
|
(726 |
) |
Less Stock-based
compensation |
|
(1,838 |
) |
|
|
(1,478 |
) |
|
|
(3,507 |
) |
|
|
(2,128 |
) |
Less Restructuring costs,
net |
|
269 |
|
|
|
(268 |
) |
|
|
(289 |
) |
|
|
(3,175 |
) |
Less Restatement costs |
|
(6 |
) |
|
|
(365 |
) |
|
|
2 |
|
|
|
(592 |
) |
Less Acquisition, integration
and other costs |
|
(274 |
) |
|
|
38 |
|
|
|
(425 |
) |
|
|
(44 |
) |
Less Efficiency program
costs |
|
(155 |
) |
|
|
(3 |
) |
|
|
(158 |
) |
|
|
(78 |
) |
Non-GAAP Operating
Expenses |
$ |
51,757 |
|
|
$ |
55,977 |
|
|
$ |
104,893 |
|
|
$ |
110,715 |
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Income |
|
|
|
|
|
|
|
GAAP operating income
(loss) |
|
2,567 |
|
|
|
(2,084 |
) |
|
|
7,977 |
|
|
|
(5,419 |
) |
Amortization of intangible
assets |
|
2,120 |
|
|
|
2,313 |
|
|
|
4,433 |
|
|
|
4,626 |
|
Stock-based compensation |
|
2,005 |
|
|
|
1,552 |
|
|
|
3,742 |
|
|
|
2,255 |
|
Restructuring costs, net |
|
(269 |
) |
|
|
268 |
|
|
|
289 |
|
|
|
3,175 |
|
Restatement costs |
|
6 |
|
|
|
365 |
|
|
|
(2 |
) |
|
|
592 |
|
Acquisition, integration and
other costs |
|
274 |
|
|
|
(38 |
) |
|
|
425 |
|
|
|
44 |
|
Efficiency program costs |
|
155 |
|
|
|
3 |
|
|
|
158 |
|
|
|
78 |
|
Non-GAAP Operating
Income |
$ |
6,858 |
|
|
$ |
2,379 |
|
|
$ |
17,022 |
|
|
$ |
5,351 |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
Non-GAAP Operating
Income (from above) |
|
6,858 |
|
|
|
2,379 |
|
|
|
17,022 |
|
|
|
5,351 |
|
Depreciation |
|
2,564 |
|
|
|
2,913 |
|
|
|
4,992 |
|
|
|
6,274 |
|
Adjusted
EBITDA |
$ |
9,422 |
|
|
$ |
5,292 |
|
|
$ |
22,014 |
|
|
$ |
11,625 |
|
Adjusted EBITDA
Margin |
|
9.5 |
% |
|
|
5.4 |
% |
|
|
10.9 |
% |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
Non-GAAP Net Income
(Loss) |
|
|
|
|
|
|
|
Non-GAAP Operating
Income (from above) |
|
6,858 |
|
|
|
2,379 |
|
|
|
17,022 |
|
|
|
5,351 |
|
Less: Non-GAAP interest and
other expense |
|
(5,994 |
) |
|
|
(6,278 |
) |
|
|
(11,179 |
) |
|
|
(11,637 |
) |
Less: Non-GAAP income tax
provision |
|
21 |
|
|
|
(185 |
) |
|
|
(455 |
) |
|
|
(479 |
) |
Non-GAAP Net Income
(Loss) |
$ |
885 |
|
|
$ |
(4,084 |
) |
|
$ |
5,388 |
|
|
$ |
(6,765 |
) |
Weighted-average
common shares outstanding - basic |
|
42,560 |
|
|
|
41,587 |
|
|
|
42,305 |
|
|
|
41,496 |
|
Weighted-average
common shares outstanding - diluted |
|
43,532 |
|
|
|
41,587 |
|
|
|
43,130 |
|
|
|
41,496 |
|
Non-GAAP Net Income
(Loss) Per Share - basic and diluted |
$ |
0.02 |
|
|
$ |
(0.10 |
) |
|
$ |
0.13 |
|
|
$ |
(0.16 |
) |
|
|
|
|
|
|
|
|
Free Cash
Flow |
|
|
|
|
|
|
|
GAAP net cash (used
in) provided by operating activities |
|
(2,713 |
) |
|
|
(5,871 |
) |
|
|
3,663 |
|
|
|
(501 |
) |
Capital expenditures |
|
(1,809 |
) |
|
|
(2,808 |
) |
|
|
(3,576 |
) |
|
|
(4,888 |
) |
Free Cash
Flow |
$ |
(4,522 |
) |
|
$ |
(8,679 |
) |
|
|
87 |
|
|
|
(5,389 |
) |
Free Cash Flow
conversion of Adjusted EBITDA |
|
-48.0 |
% |
|
|
-164.0 |
% |
|
|
0.4 |
% |
|
|
-46.4 |
% |
|
|
|
|
|
|
|
|
These non-GAAP
measures reflect how Avid manages its businesses internally.
Avid’s non-GAAP measures may vary from how
other companies present non-GAAP measures. Non-GAAP financial
measures are not based on a comprehensive set of accounting
rules or principles. This non-GAAP information
supplements, and is not intended to represent a measure of
performance in accordance with, disclosures required by
generally accepted accounting principles, or GAAP. Non-GAAP
financial measures should be considered in addition to, not as
a substitute for or superior to, financial measures determined in
accordance with GAAP. |
|
AVID
TECHNOLOGY, INC. |
Condensed
Consolidated Balance Sheets |
(unaudited - in
thousands) |
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2019 |
|
|
|
2018 |
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
50,955 |
|
|
$ |
56,103 |
|
Restricted cash |
|
9,020 |
|
|
|
8,500 |
|
Accounts receivable, net of allowances of $788 and $1,339 |
|
|
|
at June 30, 2019 and December 31, 2018, respectively |
|
58,634 |
|
|
|
67,754 |
|
Inventories |
|
34,105 |
|
|
|
32,956 |
|
Prepaid expenses |
|
10,080 |
|
|
|
8,853 |
|
Contract assets |
|
18,478 |
|
|
|
16,513 |
|
Other current assets |
|
5,466 |
|
|
|
5,917 |
|
Total current assets |
|
186,738 |
|
|
|
196,596 |
|
|
|
|
|
Property and equipment, net |
|
20,132 |
|
|
|
21,582 |
|
Intangible assets, net |
|
- |
|
|
|
4,432 |
|
Goodwill |
|
32,643 |
|
|
|
32,643 |
|
Right of use assets |
|
33,324 |
|
|
|
- |
|
Long-term deferred tax assets, net |
|
1,122 |
|
|
|
1,158 |
|
Other long-term assets |
|
8,142 |
|
|
|
9,432 |
|
Total assets |
$ |
282,101 |
|
|
$ |
265,843 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
39,083 |
|
|
$ |
39,239 |
|
Accrued compensation and benefits |
|
17,054 |
|
|
|
21,967 |
|
Accrued expenses and other current liabilities |
|
40,899 |
|
|
|
37,547 |
|
Income taxes payable |
|
1,791 |
|
|
|
1,853 |
|
Short-term debt |
|
28,871 |
|
|
|
1,405 |
|
Deferred revenue |
|
79,214 |
|
|
|
85,662 |
|
Total current liabilities |
|
206,912 |
|
|
|
187,673 |
|
|
|
|
|
Long-term debt |
|
200,227 |
|
|
|
220,590 |
|
Long-term deferred revenue |
|
14,302 |
|
|
|
13,939 |
|
Long-term lease liabilities |
|
31,216 |
|
|
|
- |
|
Other long-term liabilities |
|
5,267 |
|
|
|
10,302 |
|
Total liabilities |
|
457,924 |
|
|
|
432,504 |
|
|
|
|
|
Stockholders'
deficit: |
|
|
|
Common stock |
|
427 |
|
|
|
423 |
|
Additional paid-in capital |
|
1,025,301 |
|
|
|
1,028,924 |
|
Accumulated deficit |
|
(1,197,946 |
) |
|
|
(1,187,010 |
) |
Treasury stock at cost |
|
- |
|
|
|
(5,231 |
) |
Accumulated other comprehensive loss |
|
(3,605 |
) |
|
|
(3,767 |
) |
Total stockholders' deficit |
|
(175,823 |
) |
|
|
(166,661 |
) |
Total liabilities and stockholders' deficit |
$ |
282,101 |
|
|
$ |
265,843 |
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
Condensed
Consolidated Statements of Cash Flows |
(unaudited - in
thousands) |
|
|
|
|
|
Six Months Ended |
|
June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
Net loss |
$ |
(10,936 |
) |
|
$ |
(17,455 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
Depreciation and amortization |
|
9,424 |
|
|
|
10,899 |
|
Recovery from doubtful accounts |
|
(48 |
) |
|
|
(43 |
) |
Stock-based compensation expense |
|
3,743 |
|
|
|
2,255 |
|
Non-cash provision for restructuring |
|
- |
|
|
|
934 |
|
Non-cash interest expense |
|
5,966 |
|
|
|
6,149 |
|
Loss on extinguishment of debt |
|
2,878 |
|
|
|
- |
|
Unrealized foreign currency transaction loss (gain) |
|
105 |
|
|
|
(921 |
) |
Provision for deferred taxes |
|
43 |
|
|
|
5 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
9,168 |
|
|
|
13,525 |
|
Inventories |
|
(1,149 |
) |
|
|
653 |
|
Prepaid expenses and other assets |
|
(1,095 |
) |
|
|
2,454 |
|
Accounts payable |
|
(167 |
) |
|
|
3,426 |
|
Accrued expenses, compensation and benefits and other
liabilities |
|
(6,106 |
) |
|
|
(12,275 |
) |
Income taxes payable |
|
(6 |
) |
|
|
(37 |
) |
Deferred revenue and contract assets |
|
(8,157 |
) |
|
|
(10,070 |
) |
Net cash provided by
(used in) operating activities |
|
3,663 |
|
|
|
(501 |
) |
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Purchases of property and equipment |
|
(3,576 |
) |
|
|
(4,888 |
) |
Increase in other long-term assets |
|
- |
|
|
|
(17 |
) |
Net cash used in
investing activities |
|
(3,576 |
) |
|
|
(4,905 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Proceeds from long-term debt |
|
79,289 |
|
|
|
22,688 |
|
Repayment of debt |
|
(714 |
) |
|
|
(2,998 |
) |
Payments for repurchase of outstanding notes |
|
(76,269 |
) |
|
|
(1,725 |
) |
Proceeds from the issuance of common stock under employee stock
plans |
|
309 |
|
|
|
256 |
|
Common stock repurchases for tax withholdings for net settlement of
equity awards |
|
(1,895 |
) |
|
|
(649 |
) |
Partial unwind capped call cash receipt |
|
27 |
|
|
|
2 |
|
Payments for credit facility issuance costs |
|
(5,979 |
) |
|
|
- |
|
Net cash (used in)
provided by financing activities |
|
(5,232 |
) |
|
|
17,574 |
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents, and restricted cash |
|
(3 |
) |
|
|
(401 |
) |
Net (decrease) increase in
cash, cash equivalents, and restricted cash |
|
(5,148 |
) |
|
|
11,767 |
|
Cash, cash equivalents and
restricted cash at beginning of the period |
|
68,094 |
|
|
|
60,433 |
|
Cash, cash equivalents and
restricted cash at end of the period |
$ |
62,946 |
|
|
$ |
72,200 |
|
Supplemental
information: |
|
|
|
Cash and cash equivalents |
$ |
50,955 |
|
|
$ |
60,209 |
|
Restricted cash |
|
9,020 |
|
|
|
8,500 |
|
Restricted cash included in
other long-term assets |
|
2,971 |
|
|
|
3,491 |
|
Total cash, cash equivalents
and restricted cash shown in the statement of cash flows |
$ |
62,946 |
|
|
$ |
72,200 |
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
Supplemental Revenue
Information |
(unaudited - in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
|
|
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
|
|
Revenue
Backlog* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Revenue |
$ |
93.5 |
|
$ |
101.3 |
|
$ |
97.7 |
|
|
|
|
Other Backlog |
|
351.3 |
|
|
358.4 |
|
|
350.5 |
|
|
|
|
Total Revenue Backlog |
$ |
444.8 |
|
$ |
459.7 |
|
$ |
448.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The expected
timing of recognition of revenue backlog as of June 30, 2019 is as
follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
2020 |
|
|
2021 |
|
Thereafter |
|
Total |
|
|
|
|
|
|
|
|
|
|
Deferred Revenue |
$ |
54.9 |
|
$ |
25.6 |
|
$ |
8.4 |
|
$ |
4.6 |
|
$ |
93.5 |
Other
Backlog |
|
87.3 |
|
|
75.8 |
|
|
61.6 |
|
|
126.6 |
|
|
351.3 |
Total Revenue Backlog |
$ |
142.2 |
|
$ |
101.4 |
|
$ |
70.0 |
|
$ |
131.2 |
|
$ |
444.8 |
|
|
|
|
|
|
|
|
|
|
*A definition of Revenue Backlog is included in our Form 8-K filed
today and the supplemental financial and operational data sheet
available on our investor relations webpage at
ir.avid.com. |
|
|
|
|
|
|
|
|
|
|
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