Avid® (NASDAQ: AVID), a leading technology provider that
powers the media and entertainment industry, today announced that
its Board of Directors has authorized a share repurchase program
pursuant to which Avid may purchase up to $115 million of its
common stock.
The Company’s decision to repurchase its shares, as well as the
timing of such repurchases, will depend on a variety of factors,
including the ongoing assessment of the Company’s capital needs,
the market price of the Company’s common stock, general market
conditions and other corporate considerations, as determined by
management. The company expects to fund any repurchases using cash
on hand and cash generated from operations.
“We now have an opportunity to unlock significantly greater
value for shareholders resulting from our successful repositioning
of the company to a growing subscription-based business model and
delivering improved profitability,” said Jeff Rosica, Chief
Executive Officer and President of Avid. Mr. Rosica continued, “As
part of our long-term strategy, we believe returning capital
through share repurchases will further accelerate returns for all
shareholders and that this authorization will be a key part of our
capital deployment strategy.”
“Avid is in a strong financial position on a positive
trajectory, with increasing Free Cash Flow and a solid growth
strategy,” said Ken Gayron, Chief Financial Officer of Avid. Mr.
Gayron continued, “We are reserving a portion of our Free Cash Flow
to return to shareholders as part of our overall capital deployment
strategy, and we believe this repurchase authorization should
provide an attractive return on capital, as we are confident in our
long term financial plan.”
Stock repurchases may be executed pursuant to trading plans
established pursuant to Rule 10b5-1 under the Securities Exchange
Act of 1934 and through various means, including, without
limitation, open market transactions, privately negotiated
transactions or otherwise. The share repurchase program does not
obligate the Company to purchase any shares, and the program may be
suspended or discontinued at any time.
Forward-Looking Statements
Certain information provided in this press release includes
forward-looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934, which are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Examples of forward-looking
statements include statements regarding our plans to repurchase
outstanding shares of common stock and the timing and our ability
to repurchase shares of common stock, our future financial
performance or position, results of operations, business strategy,
plans and objectives of management for future operations, and other
statements that are not historical fact. You can identify
forward-looking statements by their use of forward-looking words
such as “may”, “will”, “anticipate”, “expect”, “believe”,
“estimate”, “intend”, “plan”, “should”, “seek”, or other comparable
terms.
Readers of this press release should understand that these
forward-looking statements are not guarantees of performance or
results. Forward-looking statements provide our current
expectations and beliefs concerning future events and are subject
to risks, uncertainties, and factors relating to our business and
operations, all of which are difficult to predict and could cause
our actual results to differ materially from the expectations
expressed in or implied by such forward-looking statements.
These risks, uncertainties, and factors include, but are not
limited to: changes in price and volume and the volatility of the
Company’s common stock; adverse developments affecting prices and
trading of securities listed on the Nasdaq Stock Market generally;
unexpected or otherwise unplanned or alternative requirements with
respect to the Company’s capital investments; risks related to the
impact of the coronavirus (COVID-19) outbreak on our business,
suppliers, consumers, customers and employees; our liquidity; our
ability to execute our strategic plan including our cost saving
strategies, and to 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; risks related to the availability and
prices of raw materials, including any negative effects caused by
inflation, weather conditions, or health pandemics; disruptions or
inefficiencies in our supply chain and/or operations, including
from the COVID-19 outbreak; the costs, disruption, and diversion of
management's attention due to the COVID-19 outbreak; the
possibility of legal proceedings adverse to our Company; and other
risks described in our reports filed from time to time with the
U.S. Securities and Exchange Commission. 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. We caution readers not to place undue reliance on
any forward-looking statements includes in this press release which
speak only as to the date of this press release. We undertake no
responsibility to update or revise any forward-looking statements,
except as required by law.
About AvidAvid 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®™ and
Maestro™. 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.
© 2021 Avid Technology, Inc. All rights reserved. Avid, the Avid
logo, Avid NEXIS, Avid FastServe, AirSpeed, iNews, Maestro,
MediaCentral, Media Composer, 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.
Investor Contact:
Whit Rappole
Avid
IR@avid.com
PR Contact:
Jim Sheehan
Avid
jim.sheehan@avid.com
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