Avid® (NASDAQ: AVID), a leading technology provider that powers the
media and entertainment industry, today announced its second
quarter 2020 financial results.
During the second quarter, the Recurring Revenue components of
the company’s business were resilient despite the COVID-19 global
pandemic. The Company reported record subscription revenue of
$16.4 million, up 68% year-over-year and maintenance revenue was
stable, resulting in 8.5% year-over-year growth in Annual Contract
Value. Also, in the quarter, Avid significantly improved its
profitability as a result of higher gross margin coupled with a
more efficient cost structure. The year-over-year improvement
in gross margin of 760 basis points was a result of a greater
portion of revenue coming from higher-margin software in the
quarter and benefits from expense reductions in non-material cost
of sales. Profitability was also enhanced by the $11 million
year-over-year reduction in operating expenses in the quarter,
which the Company will continue to closely manage towards the
target of at least a $30 million reduction for fiscal 2020.
For the second quarter, total revenue declined year-over-year,
as the non-Recurring Revenue portions of the Company’s business
related to product and professional services continued to be
negatively impacted by weaker demand as a result of the COVID-19
global pandemic, which has caused the postponement or cancellation
of many live music and major sporting events, and the temporary
suspension of many film and television
productions.
During the quarter, the Company repaid the remaining $28.9
million of outstanding convertible notes at their maturity using
available cash. As of June 30, 2020, the Company had $55.7
million in cash and cash equivalents. The Company’s leverage
ratio under the financing agreement dropped to 4.3x as of June 30,
2020, as a result of the year-over-year increase in Adjusted EBITDA
in the quarter, and the Company remains well below the covenant
levels in the financing agreement as amended in May 2020.
Second Quarter 2020 Financial and Business
Highlights
- Subscription revenue was $16.4 million, up 68.3%
year-over-year.
- Paid Cloud-enabled software subscriptions increased by
approximately 24,000 during the quarter, to approximately 242,000
at June 30, 2020, an increase of 63.9% year-over-year in total paid
subscriptions.
- Subscription and Maintenance revenue was $47.0 million, up
13.5% year-over-year.
- Total revenue was $79.3 million, down (19.7%)
year-over-year.
- Gross margin was 65.0%, up 760 basis points
year-over-year. Non-GAAP Gross Margin was 65.4%, up 600 basis
points year-over-year.
- Operating expenses were $43.5 million, a decrease of (19.6%)
year-over-year. Non-GAAP Operating Expenses were $40.5
million, a decrease of (21.7%) year-over-year.
- Operating income was $8.1 million, an increase of 214.0%
year-over-year. Non-GAAP Operating Income was $11.3 million,
an increase of 65.2% year-over-year.
- Adjusted EBITDA was $13.5 million, an increase of 43.3%
year-over-year. Adjusted EBITDA Margin was 17.0%, up 750
basis points year-over-year.
- Net income per common share was $0.04, up from a loss per
common share of ($0.25) in the second quarter of 2019.
Non-GAAP Net Income per Share was $0.12, up from Non-GAAP Net
Income per Share of $0.02 in the second quarter of 2019.
- Net cash (used in) operating activities was ($3.5) million in
the quarter, a decrease of ($0.8) million compared to Net cash
(used in) operating activities of ($2.7) million in the second
quarter of 2019.
- Free Cash Flow was ($5.2) million, a decrease of ($0.7) million
compared to ($4.5) million in the second quarter of 2019.
- LTM Recurring Revenue was 69.8% of the Company’s revenue for
the 12 months ended June 30, 2020, up from 58.1% for the 12 months
ended June 30, 2019.
- Annual Contract Value was $265.3 million as of June 30, 2020,
up 8.5% from $244.6 million as of June 30, 2019.
Jeff Rosica, Avid’s CEO and President stated, “While the
COVID-19 pandemic continued to negatively impact the Company’s
business during the second quarter, we are pleased with the
strength of our creative subscription business, which continued its
strong growth in the quarter, and with the resilience of our
recurring revenue business. COVID-19 continues to temporarily
reduce customer demand for parts of our non-recurring product
business, but we expect demand to gradually improve as we get
further into the second half of 2020.” Mr. Rosica continued,
“The COVID-19 pandemic has also created opportunities to grow
strategic portions of the business. We are adjusting our
strategy and our investments to respond to the changes in the
market which are informed by ongoing discussions with customers
across the media industry, placing greater focus on the products
and solutions that we believe will drive profitable growth as we
emerge in the post-COVID environment. We are committed to
making the changes we need to make to ensure that Avid exits this
pandemic as a stronger and more profitable company.”
Ken Gayron, Executive Vice President and Chief Financial Officer
of Avid, said, “We made substantial progress in driving our higher
margin revenue streams and improving our cost structure in the
second quarter, resulting in strong growth in profitability.”
Mr. Gayron continued, “We also made significant progress in
improving our working capital position in the quarter, including by
reducing accounts payable by more than $17 million during the
quarter, that we believe should provide a strong foundation for
improved Free Cash Flow in the second half of 2020. Finally,
we expect to see continued improvement in our balance sheet and
leverage position that we believe should enable the Company to
improve its cost of capital and profitability over time.”
Conference Call to Discuss Second Quarter 2020 Results
on August 3, 2020
Avid will host a conference call to discuss its financial
results for the second quarter of 2020 on Monday, August 3, 2020 at
5:30 p.m. ET. Participants may join the webcast in
listen-only mode and access the presentation slides using the link
on the Avid Investor Relations website, which can be found on the
events tab at ir.avid.com. Participants who would like to ask
a question, can access the call by dialing +1 323-289-6576 and
referencing confirmation code 7030762. Please connect at
least 15 minutes in advance to ensure a timely connection to the
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 Margin, Non-GAAP Operating Expenses, Non-GAAP
Operating Income, and Non-GAAP Net Income (Loss) per Share.
The Company also includes the operational metrics of Cloud-enabled
software subscriptions, Recurring Revenue, LTM 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. Unless
noted, all financial and operating information is reported based on
actual exchange rates.
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, as amended. Examples of
forward-looking statements include statements regarding 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: 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 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.
© 2020 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.Consolidated
Statements of Operations(unaudited - in thousands except
per share data)
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net
revenues: |
|
|
|
|
|
|
|
Products |
$ |
27,635 |
|
|
$ |
50,326 |
|
|
$ |
62,346 |
|
|
$ |
104,722 |
|
Services |
51,646 |
|
|
48,375 |
|
|
103,388 |
|
|
97,298 |
|
Total net revenues |
79,281 |
|
|
98,701 |
|
|
165,734 |
|
|
202,020 |
|
|
|
|
|
|
|
|
|
Cost of
revenues: |
|
|
|
|
|
|
|
Products |
16,954 |
|
|
28,058 |
|
|
37,916 |
|
|
55,658 |
|
Services |
10,765 |
|
|
12,195 |
|
|
23,105 |
|
|
24,682 |
|
Amortization of intangible assets |
— |
|
|
1,788 |
|
|
— |
|
|
3,738 |
|
Total cost of revenues |
27,719 |
|
|
42,041 |
|
|
61,021 |
|
|
84,078 |
|
Gross
profit |
51,562 |
|
|
56,660 |
|
|
104,713 |
|
|
117,942 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and development |
13,068 |
|
|
15,180 |
|
|
28,493 |
|
|
31,465 |
|
Marketing and selling |
19,690 |
|
|
26,129 |
|
|
44,979 |
|
|
51,007 |
|
General and administrative |
10,604 |
|
|
12,721 |
|
|
23,348 |
|
|
26,509 |
|
Amortization of intangible assets |
— |
|
|
332 |
|
|
— |
|
|
695 |
|
Restructuring costs, net |
140 |
|
|
(269 |
) |
|
285 |
|
|
289 |
|
Total operating expenses |
43,502 |
|
|
54,093 |
|
|
97,105 |
|
|
109,965 |
|
|
|
|
|
|
|
|
|
Operating
income |
8,060 |
|
|
2,567 |
|
|
7,608 |
|
|
7,977 |
|
|
|
|
|
|
|
|
|
Interest and other expense,
net |
(5,498 |
) |
|
(13,290 |
) |
|
(10,781 |
) |
|
(18,475 |
) |
Income (loss) before
income taxes |
2,562 |
|
|
(10,723 |
) |
|
(3,173 |
) |
|
(10,498 |
) |
Provision for income
taxes |
717 |
|
|
— |
|
|
839 |
|
|
438 |
|
Net income
(loss) |
$ |
1,845 |
|
|
$ |
(10,723 |
) |
|
$ |
(4,012 |
) |
|
$ |
(10,936 |
) |
|
|
|
|
|
|
|
|
Net income (loss) per common
share – basic and diluted |
$ |
0.04 |
|
|
$ |
(0.25 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.26 |
) |
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding – basic |
43,719 |
|
|
42,560 |
|
|
43,486 |
|
|
42,305 |
|
Weighted-average common shares
outstanding – diluted |
44,180 |
|
|
42,560 |
|
|
43,486 |
|
|
42,305 |
|
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, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
GAAP
revenue |
|
|
|
|
|
|
|
GAAP revenue |
$ |
79,281 |
|
|
$ |
98,701 |
|
|
$ |
165,734 |
|
|
$ |
202,020 |
|
|
|
|
|
|
|
|
|
Non-GAAP Gross
Profit |
|
|
|
|
|
|
|
GAAP gross
profit |
$ |
51,562 |
|
|
$ |
56,660 |
|
|
$ |
104,713 |
|
|
$ |
117,942 |
|
Amortization of intangible
assets |
— |
|
|
1,788 |
|
|
— |
|
|
3,738 |
|
Stock-based compensation |
275 |
|
|
167 |
|
|
475 |
|
|
235 |
|
Non-GAAP Gross
Profit |
$ |
51,837 |
|
|
$ |
58,615 |
|
|
$ |
105,188 |
|
|
$ |
121,915 |
|
Non-GAAP Gross
Margin |
65.4 |
% |
|
59.4 |
% |
|
63.5 |
% |
|
60.3 |
% |
|
|
|
|
|
|
|
|
Non-GAAP Operating
Expenses |
|
|
|
|
|
|
|
GAAP operating
expenses |
$ |
43,502 |
|
|
$ |
54,093 |
|
|
$ |
97,105 |
|
|
$ |
109,965 |
|
Less Amortization of
intangible assets |
(105 |
) |
|
(332 |
) |
|
(201 |
) |
|
(695 |
) |
Less Stock-based
compensation |
(2,450 |
) |
|
(1,838 |
) |
|
(4,359 |
) |
|
(3,507 |
) |
Less Restructuring costs,
net |
(140 |
) |
|
269 |
|
|
(285 |
) |
|
(289 |
) |
Less Restatement costs |
— |
|
|
(6 |
) |
|
— |
|
|
2 |
|
Less Acquisition, integration
and other costs |
— |
|
|
(274 |
) |
|
183 |
|
|
(425 |
) |
Less Efficiency program
costs |
(235 |
) |
|
(155 |
) |
|
(366 |
) |
|
(158 |
) |
Less COVID-19 related
expenses |
(62 |
) |
|
— |
|
|
(248 |
) |
|
— |
|
Non-GAAP Operating
Expenses |
$ |
40,510 |
|
|
$ |
51,757 |
|
|
$ |
91,829 |
|
|
$ |
104,893 |
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Income |
|
|
|
|
|
|
|
GAAP operating
income |
$ |
8,060 |
|
|
$ |
2,567 |
|
|
$ |
7,608 |
|
|
$ |
7,977 |
|
Amortization of intangible
assets |
105 |
|
|
2,120 |
|
|
201 |
|
|
4,433 |
|
Stock-based compensation |
2,726 |
|
|
2,005 |
|
|
4,835 |
|
|
3,742 |
|
Restructuring costs, net |
140 |
|
|
(269 |
) |
|
285 |
|
|
289 |
|
Restatement costs |
— |
|
|
6 |
|
|
— |
|
|
(2 |
) |
Acquisition, integration and
other costs |
— |
|
|
274 |
|
|
(183 |
) |
|
425 |
|
Efficiency program costs |
235 |
|
|
155 |
|
|
366 |
|
|
158 |
|
COVID-19 related
expenses |
62 |
|
|
— |
|
|
248 |
|
|
— |
|
Non-GAAP Operating
Income |
$ |
11,328 |
|
|
$ |
6,858 |
|
|
$ |
13,360 |
|
|
$ |
17,022 |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
Non-GAAP Operating
Income (from above) |
$ |
11,328 |
|
|
$ |
6,858 |
|
|
$ |
13,360 |
|
|
$ |
17,022 |
|
Depreciation |
2,172 |
|
|
2,564 |
|
|
4,314 |
|
|
4,992 |
|
Adjusted
EBITDA |
$ |
13,500 |
|
|
$ |
9,422 |
|
|
$ |
17,674 |
|
|
$ |
22,014 |
|
Adjusted EBITDA
Margin |
17.0 |
% |
|
9.5 |
% |
|
10.7 |
% |
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net
Income |
|
|
|
|
|
|
|
Non-GAAP Operating
Income (from above) |
$ |
11,328 |
|
|
$ |
6,858 |
|
|
$ |
13,360 |
|
|
$ |
17,022 |
|
Less Non-GAAP Interest and
other expense |
(5,498 |
) |
|
(5,994 |
) |
|
(10,774 |
) |
|
(11,179 |
) |
Less Non-GAAP Income Tax |
(748 |
) |
|
21 |
|
|
(880 |
) |
|
(455 |
) |
Non-GAAP Net
Income |
$ |
5,082 |
|
|
$ |
885 |
|
|
$ |
1,706 |
|
|
$ |
5,388 |
|
Weighted-average
common shares outstanding - basic |
43,719 |
|
|
42,560 |
|
|
43,486 |
|
|
42,305 |
|
Weighted-average
common shares outstanding - diluted |
44,180 |
|
|
43,532 |
|
|
44,227 |
|
|
43,130 |
|
Non-GAAP Earnings Per
Share - basic and diluted |
$ |
0.12 |
|
|
$ |
0.02 |
|
|
$ |
0.04 |
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
Free Cash
Flow |
|
|
|
|
|
|
|
GAAP net cash (used
in) provided by operating activities |
$ |
(3,507 |
) |
|
$ |
(2,713 |
) |
|
$ |
(9,112 |
) |
|
$ |
3,663 |
|
Capital expenditures |
(1,733 |
) |
|
(1,809 |
) |
|
(3,212 |
) |
|
(3,576 |
) |
Free Cash
Flow |
$ |
(5,240 |
) |
|
$ |
(4,522 |
) |
|
$ |
(12,324 |
) |
|
$ |
87 |
|
Free Cash Flow
conversion of Adjusted EBITDA |
(38.8 |
)% |
|
(48.0 |
)% |
|
(69.7 |
)% |
|
0.4 |
% |
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.Consolidated
Balance Sheets(unaudited - in thousands, except per share
data)
|
June 30, |
|
December 31, |
|
2020 |
|
2019 |
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
55,662 |
|
|
$ |
69,085 |
|
Restricted cash |
1,663 |
|
|
1,663 |
|
Accounts receivable, net of allowances of $2,160 and $958 at June
30, 2020 and December 31, 2019, respectively |
52,909 |
|
|
73,773 |
|
Inventories |
29,650 |
|
|
29,166 |
|
Prepaid expenses |
9,658 |
|
|
9,425 |
|
Contract assets |
18,246 |
|
|
19,494 |
|
Other current assets |
5,588 |
|
|
6,125 |
|
Total current assets |
173,376 |
|
|
208,731 |
|
Property and equipment, net |
18,421 |
|
|
19,580 |
|
Goodwill |
32,643 |
|
|
32,643 |
|
Right of use assets |
28,876 |
|
|
29,747 |
|
Long-term deferred tax assets |
7,078 |
|
|
7,479 |
|
Other long-term assets |
4,974 |
|
|
6,113 |
|
Total assets |
$ |
265,368 |
|
|
$ |
304,293 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
17,853 |
|
|
$ |
39,888 |
|
Accrued compensation and benefits |
22,347 |
|
|
19,524 |
|
Accrued expenses and other current liabilities |
29,240 |
|
|
36,759 |
|
Income taxes payable |
1,990 |
|
|
1,945 |
|
Short-term debt |
3,385 |
|
|
30,554 |
|
Deferred revenue |
74,193 |
|
|
83,589 |
|
Total current liabilities |
149,008 |
|
|
212,259 |
|
Long-term debt |
227,392 |
|
|
199,034 |
|
Long-term deferred revenue |
11,530 |
|
|
14,312 |
|
Long-term lease liabilities |
28,482 |
|
|
28,127 |
|
Other long-term liabilities |
5,448 |
|
|
5,646 |
|
Total liabilities |
421,860 |
|
|
459,378 |
|
|
|
|
|
Stockholders’
deficit: |
|
|
|
Common stock |
$ |
437 |
|
|
$ |
430 |
|
Additional paid-in capital |
1,030,303 |
|
|
1,027,824 |
|
Accumulated deficit |
(1,183,421 |
) |
|
(1,179,409 |
) |
Accumulated other comprehensive loss |
(3,811 |
) |
|
(3,930 |
) |
Total stockholders’ deficit |
(156,492 |
) |
|
(155,085 |
) |
Total liabilities and stockholders’ deficit |
$ |
265,368 |
|
|
$ |
304,293 |
|
AVID TECHNOLOGY, INC.Consolidated
Statements of Cash Flows(unaudited - in thousands)
|
Six Months Ended |
|
June 30, |
|
2020 |
|
2019 |
Cash flows from
operating activities: |
|
|
|
Net loss |
$ |
(4,012 |
) |
|
$ |
(10,936 |
) |
Adjustments to reconcile net
loss to net cash (used in) provided by operating activities: |
|
|
|
Depreciation and amortization |
4,330 |
|
|
9,424 |
|
Allowance for (recovery from) doubtful accounts |
1,205 |
|
|
(48 |
) |
Stock-based compensation expense |
4,835 |
|
|
3,743 |
|
Non-cash interest expense |
3,433 |
|
|
5,966 |
|
Loss on extinguishment of debt |
— |
|
|
2,878 |
|
Unrealized foreign currency transaction (gains) losses |
(112 |
) |
|
105 |
|
Benefit from deferred taxes |
383 |
|
|
43 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
18,783 |
|
|
9,168 |
|
Inventories |
(484 |
) |
|
(1,149 |
) |
Prepaid expenses and other assets |
(547 |
) |
|
(1,095 |
) |
Accounts payable |
(22,003 |
) |
|
(167 |
) |
Accrued expenses, compensation and benefits and other
liabilities |
(4,057 |
) |
|
(6,106 |
) |
Income taxes payable |
66 |
|
|
(6 |
) |
Deferred revenue and contract assets |
(10,932 |
) |
|
(8,157 |
) |
Net cash (used in)
provided by operating activities |
(9,112 |
) |
|
3,663 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Purchases of property and equipment |
(3,212 |
) |
|
(3,576 |
) |
Net cash used in
investing activities |
(3,212 |
) |
|
(3,576 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Proceeds from revolving line of credit |
22,000 |
|
|
— |
|
Proceeds from long-term debt |
7,800 |
|
|
79,289 |
|
Repayment of debt |
(695 |
) |
|
(714 |
) |
Payments for repurchase of outstanding notes |
(28,867 |
) |
|
(76,269 |
) |
Proceeds from the issuance of common stock under employee stock
plans |
— |
|
|
309 |
|
Common stock repurchases for tax withholdings for net settlement of
equity awards |
(2,357 |
) |
|
(1,895 |
) |
Unwind capped call cash receipt |
875 |
|
|
27 |
|
Payments for credit facility issuance costs |
(289 |
) |
|
(5,979 |
) |
Net cash used in
financing activities |
(1,533 |
) |
|
(5,232 |
) |
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
682 |
|
|
(3 |
) |
Net decrease in cash, cash
equivalents and restricted cash |
(13,175 |
) |
|
(5,148 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
72,575 |
|
|
68,094 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
59,400 |
|
|
$ |
62,946 |
|
Supplemental
information: |
|
|
|
Cash and cash equivalents |
$ |
55,662 |
|
|
$ |
50,955 |
|
Restricted cash |
$ |
1,663 |
|
|
$ |
9,020 |
|
Restricted cash included in
other long-term assets |
$ |
2,075 |
|
|
$ |
2,971 |
|
Total cash, cash equivalents
and restricted cash shown in the statement of cash flows |
$ |
59,400 |
|
|
$ |
62,946 |
|
|
|
|
|
AVID TECHNOLOGY, INC.Supplemental
Revenue Information(unaudited - in millions)
|
Backlog Disclosure
for Quarter Ended June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
March 31, |
June 30, |
|
|
|
|
2020 |
2020 |
2019 |
|
|
|
Revenue
Backlog* |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Revenue |
$ |
85.7 |
|
$ |
95.4 |
|
$ |
93.5 |
|
|
|
|
Other Backlog |
|
337.9 |
|
|
339.6 |
|
|
351.3 |
|
|
|
|
Total Revenue Backlog |
$ |
423.6 |
|
$ |
435.0 |
|
$ |
444.8 |
|
|
|
|
|
|
|
|
|
|
|
The expected
timing of recognition of revenue backlog as of June 30, 2020 is as
follows: |
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2021 |
|
2022 |
Thereafter |
Total |
|
|
|
|
|
|
|
|
Deferred Revenue |
$ |
54.6 |
|
$ |
24 |
|
$ |
4.4 |
|
$ |
2.7 |
|
$ |
85.7 |
|
|
Other
Backlog |
|
67.4 |
|
|
114.2 |
|
|
83.6 |
|
|
72.7 |
|
|
337.9 |
|
|
Total
Revenue Backlog |
$ |
122.0 |
|
$ |
138.2 |
|
$ |
88.0 |
|
$ |
75.4 |
|
$ |
423.6 |
|
|
|
|
|
|
|
|
|
*A definition of
Revenue Backlog is included in the supplemental financial and
operational data sheet available on our investor relations webpage
at ir.avid.com. |
|
|
|
|
|
|
|
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