Avid® (NASDAQ: AVID), a leading technology provider that powers the
media and entertainment industry, today announced its third quarter
2019 financial results and reaffirmed the full-year 2019 guidance
provided on October 31, 2019.
Third Quarter 2019 Financial and Business
Highlights
- Results were in line with preliminary results provided on
October 31, 2019.
- Revenue was $93.5 million, down (10.2%) year-over-year from
$104.0 million in Q3 2018.
- Gross margin was 61.9%, up 360 basis points
year-over-year. Non-GAAP Gross Margin was 62.1%, up 190 basis
points year-over-year.
- Operating expenses were $49.5 million, a decrease of (7.7%)
year-over-year. Non-GAAP Operating Expenses were $47.3
million, a decrease of (6.8%) year over year.
- Operating income was $8.4 million, up 19.5%
year-over-year. Non-GAAP Operating Income was $10.7 million,
a decrease of (9.6%) year-over-year.
- Adjusted EBITDA was $12.8 million, a decrease of (12.3%)
year-over-year. Adjusted EBITDA Margin was 13.7%, down (30)
basis points year-over-year.
- Net income per common share was $0.07, up from net income per
common share of $0.02 in Q3 2018. Non-GAAP Net Income per
Share was $0.10, down from Non-GAAP Net Income per Share of $0.13
in Q3 2018.
- Net cash (used in) operating activities was ($2.6) million in
Q3 2019, an improvement of $1.1 million compared to Net cash (used
in) operating activities of ($3.7) million in Q3 2018.
- Free Cash Flow was ($4.6) million, an improvement of $1.8
million compared to Free Cash Flow of ($6.4) million in Q3
2018.
- Software revenue from subscriptions was $10.3 million, an
increase of 17% year-over-year, with approximately 170,000
cloud-enabled software subscriptions as of September 30, 2019, up
46% year-over-year.
- Software subscriptions billings were up 49%
year-over-year.
- Maintenance revenue was $33.4 million, a decrease of ($1.7)
million year-over-year, but up $1.7 million sequentially from Q2
2019.
- Recurring Revenue was 59.4% of the Company’s revenue in the
twelve months ended September 30, 2019, up 560 basis points from
53.8% in the twelve months ended September 30, 2018.
- Annual Contract Value was $258 million at the end of Q3 2019,
up 3.7% from $249 million at the end of Q3 2018.
“As we indicated in our preliminary earnings release last week,
while we are disappointed with our performance during the third
quarter, we remain enthusiastic about the long-term trajectory of
the Company and the opportunity for improving growth and
profitability,” said Jeff Rosica, Chief Executive Officer and
President of Avid. Mr. Rosica continued, “Our strong growth
in subscription software and sequentially higher maintenance
revenue for the third quarter also indicates our strategy for
growing higher margin recurring revenue is progressing as
planned.”
Ken Gayron, Executive Vice President and Chief Financial Officer
of Avid added, “The revised guidance for full-year 2019 provided
last week reflects the impact of the supply chain transition and
softer demand from our smaller enterprise customers in hardware
sales that the Company experienced during the third quarter.”
Mr. Gayron continued, “The Company expects better performance in
our seasonally stronger fourth quarter of 2019 and believes Avid
will report strong year-over-year growth in Adjusted EBITDA for the
full-year 2019 and achieve its original Free Cash Flow guidance for
the full-year 2019.”
Explanations regarding our use of non-GAAP financial measures
and operational metrics and related definitions, and
reconciliations of our GAAP and non-GAAP measures, are provided in
the sections below entitled "Non-GAAP Financial Measures and
Operational Metrics" and "Reconciliations of GAAP Financial
Measures to Non-GAAP Financial Measures".
Full Year 2019 Guidance
Avid is also reaffirming its guidance for Revenue, Adjusted
EBITDA, Free Cash Flow and Non-GAAP Net Income Per Share for
full-year 2019 that was issued on October 31, 2019.
($ millions, except per share amounts) |
Full-Year 2019 |
Revenue |
$405 - $415 |
Adjusted EBITDA |
$55 - $60 |
Free Cash Flow |
$12 - $17 |
Non-GAAP Net Income Per Share |
$0.50 - $0.60 |
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 Q3 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 third quarter on Thursday, November 7, 2019 at 5:00
p.m. ET. The call will be open to the public and can be
accessed by dialing +1 334-777-6978 and referencing confirmation
code 7163009. 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.
2019 Investor Day
Avid will host an Investor Day on Tuesday, November 19, 2019
from 10:00 am to 3:00 pm Eastern Time at the NASDAQ MarketSite
located at 4 Times Square, New York, NY. Avid will provide a
detailed review of its business and strategy. Interested attendees
should RSVP to Whit Rappole, VP of Investor Relations, at
IR@Avid.com by November 12, 2019 to confirm attendance. A webcast
and replay of the Investor Day will also be available on the Avid
Investor Relations website.
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 Billings, 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 presented in this press 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.
This earnings press 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 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, completion of the transition of
our hardware supply chain, 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; 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, including our cost saving strategies and transition of our
hardware supply chain, 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 |
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Investor contact:Whit RappoleAvidir@avid.com(978) 275-2032 |
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PR contact:Jim SheehanAvidjim.sheehan@avid.com(978)
640-3152 |
AVID
TECHNOLOGY, INC. |
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|
|
|
|
|
|
Condensed Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
|
(unaudited -
in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues: |
|
|
|
|
|
|
|
|
|
Products |
|
$ |
42,911 |
|
|
$ |
52,133 |
|
|
$ |
147,633 |
|
|
$ |
144,922 |
|
|
Services |
|
|
50,550 |
|
|
|
51,913 |
|
|
|
147,848 |
|
|
|
155,676 |
|
|
Total net revenues |
|
|
93,461 |
|
|
|
104,046 |
|
|
|
295,481 |
|
|
|
300,598 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues: |
|
|
|
|
|
|
|
|
|
Products |
|
|
23,877 |
|
|
|
27,042 |
|
|
|
79,535 |
|
|
|
79,684 |
|
|
Services |
|
|
11,726 |
|
|
|
14,443 |
|
|
|
36,408 |
|
|
|
42,414 |
|
|
Amortization of intangible assets |
|
|
- |
|
|
|
1,950 |
|
|
|
3,738 |
|
|
|
5,850 |
|
|
Total cost of revenues |
|
|
35,603 |
|
|
|
43,435 |
|
|
|
119,681 |
|
|
|
127,948 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
57,858 |
|
|
|
60,611 |
|
|
|
175,800 |
|
|
|
172,650 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research and development |
|
|
14,860 |
|
|
|
15,873 |
|
|
|
46,325 |
|
|
|
47,543 |
|
|
Marketing and selling |
|
|
22,334 |
|
|
|
23,461 |
|
|
|
73,341 |
|
|
|
77,352 |
|
|
General and administrative |
|
|
12,034 |
|
|
|
13,660 |
|
|
|
38,543 |
|
|
|
41,656 |
|
|
Amortization of intangible assets |
|
|
- |
|
|
|
363 |
|
|
|
695 |
|
|
|
1,089 |
|
|
Restructuring costs, net |
|
|
229 |
|
|
|
226 |
|
|
|
518 |
|
|
|
3,401 |
|
|
Total operating expenses |
|
|
49,457 |
|
|
|
53,583 |
|
|
|
159,422 |
|
|
|
171,041 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
|
|
8,401 |
|
|
|
7,028 |
|
|
|
16,378 |
|
|
|
1,609 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
other expense, net |
|
|
(5,519 |
) |
|
|
(5,725 |
) |
|
|
(23,994 |
) |
|
|
(17,362 |
) |
|
Income
(loss) before income taxes |
|
|
2,882 |
|
|
|
1,303 |
|
|
|
(7,616 |
) |
|
|
(15,753 |
) |
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes |
|
|
(283 |
) |
|
|
425 |
|
|
|
155 |
|
|
|
824 |
|
|
Net income
(loss) |
|
$ |
3,165 |
|
|
$ |
878 |
|
|
$ |
(7,771 |
) |
|
$ |
(16,577 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per common share - basic and diluted |
|
$ |
0.07 |
|
|
$ |
0.02 |
|
|
$ |
(0.18 |
) |
|
$ |
(0.40 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic |
|
|
42,913 |
|
|
|
41,792 |
|
|
|
42,510 |
|
|
|
41,596 |
|
|
Weighted-average common shares outstanding - diluted |
|
|
43,674 |
|
|
|
42,226 |
|
|
|
42,510 |
|
|
|
41,596 |
|
|
|
|
|
|
|
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
|
|
|
|
|
|
|
|
|
Reconciliations of GAAP Financial Measures to Non-GAAP
Financial Measures |
|
|
|
|
|
|
|
(unaudited -
in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
|
September 30, |
|
September 30, |
|
GAAP
revenue |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
GAAP
revenue |
|
$ |
93,461 |
|
|
$ |
104,046 |
|
|
$ |
295,481 |
|
|
$ |
300,598 |
|
|
Amortization
of acquired deferred revenue |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Total net revenues |
|
$ |
93,461 |
|
|
$ |
104,046 |
|
|
|
295,481 |
|
|
|
300,598 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Gross Profit |
|
|
|
|
|
|
|
|
|
GAAP
gross profit |
|
|
57,858 |
|
|
|
60,611 |
|
|
|
175,800 |
|
|
|
172,650 |
|
|
Amortization
of acquired deferred revenue |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Amortization
of intangible assets |
|
|
- |
|
|
|
1,950 |
|
|
|
3,738 |
|
|
|
5,850 |
|
|
Stock-based
compensation |
|
|
185 |
|
|
|
95 |
|
|
|
420 |
|
|
|
222 |
|
|
Non-GAAP Gross Profit |
|
$ |
58,043 |
|
|
$ |
62,656 |
|
|
|
179,958 |
|
|
|
178,722 |
|
|
Non-GAAP Gross Margin |
|
|
62.1 |
% |
|
|
60.2 |
% |
|
|
60.9 |
% |
|
|
59.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Expenses |
|
|
|
|
|
|
|
|
|
GAAP
operating expenses |
|
|
49,457 |
|
|
|
53,583 |
|
|
|
159,422 |
|
|
|
171,041 |
|
|
Less
Amortization of intangible assets |
|
|
- |
|
|
|
(363 |
) |
|
|
(695 |
) |
|
|
(1,089 |
) |
|
Less
Stock-based compensation |
|
|
(1,860 |
) |
|
|
(1,981 |
) |
|
|
(5,368 |
) |
|
|
(4,109 |
) |
|
Less
Restructuring costs, net |
|
|
(229 |
) |
|
|
(226 |
) |
|
|
(518 |
) |
|
|
(3,401 |
) |
|
Less
Restatement costs |
|
|
- |
|
|
|
(223 |
) |
|
|
2 |
|
|
|
(815 |
) |
|
Less
Acquisition, integration and other costs |
|
|
(32 |
) |
|
|
(17 |
) |
|
|
(458 |
) |
|
|
(61 |
) |
|
Less
Efficiency program costs |
|
|
(33 |
) |
|
|
(2 |
) |
|
|
(191 |
) |
|
|
(80 |
) |
|
Non-GAAP Operating Expenses |
|
$ |
47,303 |
|
|
$ |
50,771 |
|
|
|
152,194 |
|
|
|
161,486 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income |
|
|
|
|
|
|
|
|
|
GAAP
operating income (loss) |
|
|
8,401 |
|
|
|
7,028 |
|
|
|
16,378 |
|
|
|
1,609 |
|
|
Amortization
of acquired deferred revenue |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Amortization
of intangible assets |
|
|
- |
|
|
|
2,313 |
|
|
|
4,433 |
|
|
|
6,939 |
|
|
Stock-based
compensation |
|
|
2,045 |
|
|
|
2,076 |
|
|
|
5,788 |
|
|
|
4,331 |
|
|
Restructuring costs, net |
|
|
229 |
|
|
|
226 |
|
|
|
518 |
|
|
|
3,401 |
|
|
Restatement
costs |
|
|
- |
|
|
|
223 |
|
|
|
(2 |
) |
|
|
815 |
|
|
Acquisition,
integration and other costs |
|
|
32 |
|
|
|
17 |
|
|
|
458 |
|
|
|
61 |
|
|
Efficiency
program costs |
|
|
33 |
|
|
|
2 |
|
|
|
191 |
|
|
|
80 |
|
|
Non-GAAP Operating Income |
|
$ |
10,740 |
|
|
$ |
11,885 |
|
|
|
27,764 |
|
|
|
17,236 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income (from above) |
|
|
10,740 |
|
|
|
11,885 |
|
|
|
27,764 |
|
|
|
17,236 |
|
|
Depreciation |
|
|
2,045 |
|
|
|
2,693 |
|
|
|
7,037 |
|
|
|
8,967 |
|
|
Adjusted EBITDA |
|
$ |
12,785 |
|
|
$ |
14,578 |
|
|
|
34,801 |
|
|
|
26,203 |
|
|
Adjusted EBITDA Margin |
|
|
13.7 |
% |
|
|
14.0 |
% |
|
|
11.8 |
% |
|
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income (Loss) |
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income (from above) |
|
|
10,740 |
|
|
|
11,885 |
|
|
|
27,764 |
|
|
|
17,236 |
|
|
Less:
Non-GAAP Interest and other expense |
|
|
(5,519 |
) |
|
|
(5,725 |
) |
|
|
(16,623 |
) |
|
|
(17,362 |
) |
|
Less: Income
tax impact of Non-GAAP adjustments |
|
|
(663 |
) |
|
|
(597 |
) |
|
|
(1,119 |
) |
|
|
(1,076 |
) |
|
Non-GAAP Net Income (Loss) |
|
$ |
4,558 |
|
|
$ |
5,563 |
|
|
$ |
10,022 |
|
|
$ |
(1,202 |
) |
|
Weighted-average common shares outstanding -
diluted |
|
|
43,674 |
|
|
|
42,226 |
|
|
|
42,510 |
|
|
|
41,596 |
|
|
Non-GAAP Earnings (Loss) Per Share |
|
$ |
0.10 |
|
|
$ |
0.13 |
|
|
$ |
0.24 |
|
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
Free
Cash Flow |
|
|
|
|
|
|
|
|
|
GAAP
net cash (used in) provided by operating activities |
|
|
(2,551 |
) |
|
|
(3,747 |
) |
|
|
1,112 |
|
|
|
(4,248 |
) |
|
Capital
expenditures |
|
|
(2,052 |
) |
|
|
(2,652 |
) |
|
|
(5,629 |
) |
|
|
(7,540 |
) |
|
Free
Cash Flow |
|
$ |
(4,603 |
) |
|
$ |
(6,399 |
) |
|
|
(4,517 |
) |
|
|
(11,788 |
) |
|
Free
Cash Flow conversion of Adjusted EBITDA |
|
|
-36.0 |
% |
|
|
-43.9 |
% |
|
|
-13.0 |
% |
|
|
-45.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
September
30, |
|
December
31, |
|
|
|
2019 |
|
|
2018 |
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
52,289 |
|
|
56,103 |
|
Restricted cash |
|
|
1,664 |
|
|
8,500 |
|
Accounts receivable, net of allowances of $598 and $1,339 |
|
|
|
|
at September 30, 2019 and December 31, 2018, respectively |
|
|
53,718 |
|
|
67,754 |
|
Inventories |
|
|
32,168 |
|
|
32,956 |
|
Prepaid expenses |
|
|
13,140 |
|
|
8,853 |
|
Contract assets |
|
|
14,418 |
|
|
16,513 |
|
Other current assets |
|
|
6,559 |
|
|
5,917 |
|
Total current assets |
|
|
173,956 |
|
|
196,596 |
|
|
|
|
|
|
Property and equipment, net |
|
|
20,140 |
|
|
21,582 |
|
Intangible assets, net |
|
|
- |
|
|
4,432 |
|
Goodwill |
|
|
32,643 |
|
|
32,643 |
|
Right of use assets |
|
|
31,467 |
|
|
|
Long-term deferred tax assets, net |
|
|
2,006 |
|
|
1,158 |
|
Other long-term assets |
|
|
6,009 |
|
|
9,432 |
|
Total assets |
|
$ |
266,221 |
|
|
265,843 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
35,554 |
|
|
39,239 |
|
Accrued compensation and benefits |
|
|
16,601 |
|
|
21,967 |
|
Accrued expenses and other current liabilities |
|
|
36,531 |
|
|
37,547 |
|
Income taxes payable |
|
|
2,170 |
|
|
1,853 |
|
Short-term debt |
|
|
29,705 |
|
|
1,405 |
|
Deferred revenues |
|
|
71,224 |
|
|
85,662 |
|
Total current liabilities |
|
|
191,785 |
|
|
187,673 |
|
|
|
|
|
|
Long-term debt |
|
|
199,593 |
|
|
220,590 |
|
Long-term deferred revenues |
|
|
13,757 |
|
|
13,939 |
|
Long-term lease liabilities |
|
|
28,930 |
|
|
- |
|
Other long-term liabilities |
|
|
5,081 |
|
|
10,302 |
|
Total liabilities |
|
|
439,146 |
|
|
432,504 |
|
|
|
|
|
|
Stockholders' deficit: |
|
|
|
|
Common stock |
|
|
429 |
|
|
423 |
|
Additional paid-in capital |
|
|
1,025,796 |
|
|
1,028,924 |
|
Accumulated deficit |
|
|
(1,194,781 |
) |
|
(1,187,010 |
) |
Treasury stock at cost |
|
|
- |
|
|
(5,231 |
) |
Accumulated other comprehensive loss |
|
|
(4,369 |
) |
|
(3,767 |
) |
Total stockholders' deficit |
|
|
(172,925 |
) |
|
(166,661 |
) |
Total liabilities and stockholders' deficit |
|
$ |
266,221 |
|
|
265,843 |
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
Condensed Consolidated Statements of Cash
Flows |
|
|
|
(unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended |
|
|
September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
Net loss |
$ |
(7,771 |
) |
|
$ |
(16,577 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
11,469 |
|
|
|
15,905 |
|
(Recovery from) provision for doubtful accounts |
|
(156 |
) |
|
|
61 |
|
Stock-based compensation expense |
|
5,788 |
|
|
|
4,331 |
|
Non-cash provision for restructuring |
|
- |
|
|
|
1,083 |
|
Non-cash interest expense |
|
7,054 |
|
|
|
8,697 |
|
Loss on extinguishment of debt |
|
2,878 |
|
|
|
Unrealized foreign currency transaction loss (gain) |
|
237 |
|
|
|
(794 |
) |
Deferred tax provision |
|
(886 |
) |
|
|
6 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
14,192 |
|
|
|
10,129 |
|
Inventories |
|
788 |
|
|
|
294 |
|
Prepaid expenses and other assets |
|
(3,526 |
) |
|
|
3,724 |
|
Accounts payable |
|
(3,661 |
) |
|
|
3,467 |
|
Accrued expenses, compensation and benefits and other
liabilities |
|
(13,035 |
) |
|
|
(12,453 |
) |
Income taxes payable |
|
372 |
|
|
|
423 |
|
Deferred revenue and contract assets |
|
(12,631 |
) |
|
|
(22,544 |
) |
Net cash provided by (used in) operating
activities |
|
1,112 |
|
|
|
(4,248 |
) |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Purchases of property and equipment |
|
(5,629 |
) |
|
|
(7,540 |
) |
Increase in other long-term assets |
|
- |
|
|
|
(25 |
) |
Net cash used in investing activities |
|
(5,629 |
) |
|
|
(7,565 |
) |
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
Proceeds from long-term debt |
|
79,286 |
|
|
|
22,688 |
|
Repayment of debt |
|
(1,113 |
) |
|
|
(7,808 |
) |
Payments for repurchase of outstanding Notes |
|
(76,269 |
) |
|
|
Proceeds from the issuance of common stock under employee stock
plans |
|
309 |
|
|
|
266 |
|
Common stock repurchases for tax withholdings for net settlement of
equity awards |
|
(3,444 |
) |
|
|
(957 |
) |
Partial unwind capped call cash receipt |
|
27 |
|
|
|
- |
|
Payments for credit facility issuance costs |
|
(5,979 |
) |
|
|
- |
|
Net cash (used in) provided by financing
activities |
|
(7,183 |
) |
|
|
14,189 |
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash |
|
(615 |
) |
|
|
(358 |
) |
Net (decrease) increase in cash, cash equivalents, and restricted
cash |
|
(12,315 |
) |
|
|
2,018 |
|
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 |
$ |
55,779 |
|
|
$ |
62,451 |
|
Supplemental information: |
|
|
|
Cash and cash equivalents |
$ |
52,289 |
|
|
$ |
50,460 |
|
Restricted cash |
|
1,664 |
|
|
|
8,500 |
|
Restricted cash included in other long-term assets |
|
1,826 |
|
|
|
3,491 |
|
Total cash, cash equivalents and restricted cash shown in the
statement of cash flows |
$ |
55,779 |
|
|
$ |
62,451 |
|
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
|
|
|
|
|
|
|
|
|
Supplemental Revenue Information |
|
|
|
(unaudited -
in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30, |
|
June 30, |
|
Sept 30, |
|
|
|
|
|
2019 |
|
2019 |
|
2018 |
|
|
|
|
|
Revenue Backlog* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
Revenue |
$ |
85.0 |
|
$ |
93.5 |
|
$ |
88.2 |
|
|
|
|
Other
Backlog |
358.6 |
|
351.3 |
|
370.9 |
|
|
|
|
Total
Revenue Backlog |
$ |
443.6 |
|
$ |
444.8 |
|
$ |
459.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The expected timing of recognition of revenue backlog as of
September 30, 2019 is as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2020 |
|
2021 |
|
Thereafter |
|
Total |
|
|
|
|
|
|
|
|
|
|
Deferred Revenue |
$ |
31.4 |
|
$ |
39.4 |
|
$ |
8.4 |
|
$ |
5.8 |
|
$ |
85.0 |
Other Backlog |
50.4 |
|
117.2 |
|
62.2 |
|
128.8 |
|
$ |
358.6 |
Total Revenue Backlog |
$ |
81.8 |
|
$ |
156.6 |
|
$ |
70.6 |
|
$ |
134.6 |
|
$ |
443.6 |
|
|
|
|
|
|
|
|
|
|
*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. |
|
|
|
|
|
|
|
|
|
|
Contacts
Investor contact:
Whit Rappole
Avid
ir@avid.com
(978) 275-2032
PR contact:
Jim Sheehan
Avid
jim.sheehan@avid.com
(978) 640-3152
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