Avid® (NASDAQ: AVID), a leading technology provider that powers the
media and entertainment industry, today announced its financial
results for the second quarter ended June 30, 2021, provided
guidance for the third quarter of 2021, raised full-year guidance
for Free Cash Flow, and reaffirmed all other full-year 2021
guidance.
Total revenue increased 19.7% year-over-year in the second
quarter, driven by (i) continued growth in Subscription revenue,
which was $21.5 million, an increase of 30.9% year-over-year and
(ii) a recovery in Integrated Solutions revenue, which was $31.3
million, an increase of 50.5% year-over-year.
During the second quarter, net income was $7.0 million, an
increase of 279.7% year-over-year, and Adjusted EBITDA was $15.8
million, an increase of 17.1% year-over-year. The improvement
in profitability also resulted in significant year-over-year
improvement in net cash provided by operating activities to $6.6
million, and Free Cash Flow to $5.6 million.
Second Quarter 2021 Financial and Business
Highlights
- Subscription revenue was $21.5
million, an increase of 30.9% year-over-year.
- Paid Cloud-enabled software
subscriptions, including MediaCentral subscriptions, increased by
43.2%, year-over-year to approximately 346,000 at June 30, 2021,
and increased by approximately 19,000 from March 31, 2021.
- Subscription and Maintenance revenue
was $52.0 million, an increase of 10.5% year-over-year.
- Total revenue was $94.9 million, an
increase of 19.7% year-over-year.
- LTM Recurring Revenue % was 76.1% of
the Company’s revenue for the 12 months ended June 31, 2021, up
from 69.8% for the 12 months ended June 30, 2020.
- Annual Contract Value was $293.1
million as of June 30, 2021, an increase of 10.5% from $265.3
million as of June 30, 2020.
- Gross margin was 63.4%, a decrease
of 160 basis points year-over-year. Non-GAAP Gross Margin was
63.9%, a decrease of 150 basis points year-over-year. One-time
items of $1.2M negatively impacted GAAP and Non-GAAP Gross
Margin by 120 basis points in the second quarter of 2021.
- Operating expenses were $51.1
million, an increase of 17.6% year-over-year, as the second quarter
of 2020 included significant temporary cost savings initiatives put
in place due to the COVID-19 pandemic. Non-GAAP
Operating Expenses were $47.0 million, an increase of 16.0%
year-over-year.
- Net income was $7.0 million, an
increase of 279.7% year-over-year. Net income was 7.4% of
revenue, an increase of 510 basis points year-over year. Non-GAAP
Net Income was $11.6 million, an increase of 128.5%
year-over-year. Non-GAAP Net Income was 12.2% of revenue, an
increase of 580 basis points year-over-year.
- Net income per common share was
$0.15, up from net income per common share of $0.04 in the second
quarter of 2020. Non-GAAP Net Income per Share was $0.25, up from
Non-GAAP Net Income per Share of $0.12 in the second quarter of
2020.
- Adjusted EBITDA was $15.8 million,
an increase of 17.1% year-over-year. Adjusted EBITDA Margin was
16.7%, a year-over-year decrease of 30 basis points, as the second
quarter of 2020 included significant temporary cost savings
initiatives put in place due to the COVID-19 pandemic.
- Net cash provided by operating
activities was $6.6 million in the quarter, an increase of $10.1
million compared to Net cash used in operating activities of ($3.5)
million in the prior year period.
- Free Cash Flow was $5.6 million in
the quarter, an increase of $10.8 million from ($5.2) million in
the prior year period.
Jeff Rosica, Avid’s Chief Executive Officer and President,
stated, “We are pleased by the continued strong performance from
our Subscriptions business and by the recovery of our Integrated
Solutions business, including storage and live sound, during the
second quarter.” Mr. Rosica continued, “We experienced
gradual improvement in end market demand during the second quarter,
and expect that the momentum from this recovery trend will continue
into the second half of 2021 as we introduce several new product
innovations across our portfolio.”
Ken Gayron, Chief Financial Officer and Executive Vice President
of Avid, added, “We continued to grow our recurring revenue streams
and deliver year-over-year growth in profitability and Free Cash
Flow during the second quarter.” Mr. Gayron continued,
“Having delivered this strong first half performance and favorable
trajectory we are raising our 2021 Free Cash Flow Guidance and
reaffirming all other items of our 2021 annual guidance.”
Third Quarter and Full Year 2021 Guidance
For the third quarter of 2021, Avid is providing guidance for
Revenue, Subscription & Maintenance Revenue, Non-GAAP Net
Income per Share and Adjusted EBITDA. Avid has also increased its
full-year 2021 guidance for Free Cash Flow and reaffirmed its
full-year 2021 guidance for Revenue, Subscription & Maintenance
Revenue, Non-GAAP Net Income per Share and Adjusted EBITDA that was
issued on May 5, 2021.
|
($ in millions, except per share amounts) |
Third Quarter 2021 |
|
|
Revenue |
$94 –
$100 |
|
|
Subscription & Maintenance Revenue |
$51 –
$55 |
|
|
Non-GAAP Net Income per Share |
$0.20 –
$0.28 |
|
|
Adjusted EBITDA |
$14 –
$18 |
|
|
|
|
|
|
|
Full-Year 2021 |
|
|
Revenue |
$382 –
$402 |
|
|
Subscription & Maintenance Revenue |
$217 –
$225 |
|
|
Non-GAAP Net Income per Share |
$1.05 –
$1.27 |
|
|
Adjusted EBITDA |
$69 –
$79 |
|
|
Free Cash Flow |
$49 –
$57 |
|
|
|
|
|
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 2021 Earnings Call presentation posted on Avid’s
Investor Relations website at ir.Avid.com.
Conference Call to Discuss Second Quarter 2021 Results
on August 3, 2021
Avid will host a conference call to discuss its financial
results for the first quarter on Tuesday, August 3, 2021, at 5:30
p.m. Eastern Time. 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 +1 929-477-0593 and referencing
confirmation code 3169916. Please connect at least 15 minutes in
advance to ensure a timely connection to the call. A replay of the
webcast 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 Net
Income, and Non-GAAP Net Income 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 the 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 included in the supplemental
financial and operational data sheet available on our Investor
Relations website at ir.Avid.com, which also includes definitions
of all operational metrics.
This press release also includes expectations for future
Adjusted EBITDA, Non-GAAP Net Income per Share and Free Cash Flow,
which are forward-looking non-GAAP financial measures.
Reconciliations of these forward-looking non-GAAP measures are not
included in this press release or elsewhere, due to the high
variability and difficulty in making accurate forecasts and
projections of some of the information excluded from the estimation
of the non-GAAP results, together with some of the excluded
information not being ascertainable or accessible at this time. As
a result, we are 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 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 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™, 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, 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.
Contacts
Investor
contact: |
PR
contact: |
Whit Rappole |
Jim Sheehan |
Avid |
Avid |
ir@Avid.com |
jim.sheehan@Avid.com |
|
|
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, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
Net revenues: |
|
|
|
|
|
|
|
Products |
$ |
37,178 |
|
|
$ |
27,635 |
|
|
$ |
70,445 |
|
|
$ |
62,346 |
|
Services |
|
57,698 |
|
|
|
51,646 |
|
|
|
118,795 |
|
|
|
103,388 |
|
Total net revenues |
|
94,876 |
|
|
|
79,281 |
|
|
|
189,240 |
|
|
|
165,734 |
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
Products |
|
20,083 |
|
|
|
16,954 |
|
|
|
39,576 |
|
|
|
37,916 |
|
Services |
|
14,655 |
|
|
|
10,765 |
|
|
|
28,110 |
|
|
|
23,105 |
|
Total cost of revenues |
|
34,738 |
|
|
|
27,719 |
|
|
|
67,686 |
|
|
|
61,021 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
60,138 |
|
|
|
51,562 |
|
|
|
121,554 |
|
|
|
104,713 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
16,093 |
|
|
|
13,068 |
|
|
|
31,510 |
|
|
|
28,493 |
|
Marketing and selling |
|
21,354 |
|
|
|
19,690 |
|
|
|
42,098 |
|
|
|
44,979 |
|
General and administrative |
|
13,678 |
|
|
|
10,604 |
|
|
|
27,313 |
|
|
|
23,348 |
|
Restructuring costs, net |
|
15 |
|
|
|
140 |
|
|
|
1,089 |
|
|
|
285 |
|
Total operating expenses |
|
51,140 |
|
|
|
43,502 |
|
|
|
102,010 |
|
|
|
97,105 |
|
|
|
|
|
|
|
|
|
Operating income |
|
8,998 |
|
|
|
8,060 |
|
|
|
19,544 |
|
|
|
7,608 |
|
|
|
|
|
|
|
|
|
Interest and other expense, net |
|
(1,633 |
) |
|
|
(5,498 |
) |
|
|
(7,306 |
) |
|
|
(10,781 |
) |
Income (loss) before income taxes |
|
7,365 |
|
|
|
2,562 |
|
|
|
12,238 |
|
|
|
(3,173 |
) |
|
|
|
|
|
|
|
|
Provision for income taxes |
|
359 |
|
|
|
717 |
|
|
|
841 |
|
|
|
839 |
|
Net income (loss) |
$ |
7,006 |
|
|
$ |
1,845 |
|
|
$ |
11,397 |
|
|
$ |
(4,012 |
) |
|
|
|
|
|
|
|
|
Net income (loss) per common share - basic |
$ |
0.15 |
|
|
$ |
0.04 |
|
|
$ |
0.25 |
|
|
$ |
(0.09 |
) |
Net income (loss) per common share - diluted |
$ |
0.15 |
|
|
$ |
0.04 |
|
|
$ |
0.25 |
|
|
$ |
(0.09 |
) |
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic |
|
45,211 |
|
|
|
43,719 |
|
|
|
44,887 |
|
|
|
43,486 |
|
Weighted-average common shares outstanding - diluted |
|
46,550 |
|
|
|
44,180 |
|
|
|
46,420 |
|
|
|
43,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
GAAP
Revenue |
|
|
|
|
|
|
|
GAAP Revenue |
$ |
94,876 |
|
|
$ |
79,281 |
|
|
$ |
189,240 |
|
|
$ |
165,734 |
|
|
|
|
|
|
|
|
|
Non-GAAP Gross Profit |
|
|
|
|
|
|
|
GAAP Gross Profit |
|
60,138 |
|
|
|
51,562 |
|
|
|
121,554 |
|
|
|
104,713 |
|
Stock-based compensation |
|
478 |
|
|
|
275 |
|
|
|
918 |
|
|
|
475 |
|
Non-GAAP Gross Profit |
$ |
60,616 |
|
|
$ |
51,837 |
|
|
$ |
122,472 |
|
|
$ |
105,188 |
|
GAAP Gross Margin |
|
63.4 |
% |
|
|
65.0 |
% |
|
|
64.2 |
% |
|
|
63.2 |
% |
Non-GAAP Gross Margin |
|
63.9 |
% |
|
|
65.4 |
% |
|
|
64.7 |
% |
|
|
63.5 |
% |
|
|
|
|
|
|
|
|
Non-GAAP Operating Expenses |
|
|
|
|
|
|
|
GAAP Operating Expenses |
|
51,140 |
|
|
|
43,502 |
|
|
|
102,010 |
|
|
|
97,105 |
|
Less Amortization of intangible assets |
|
(105 |
) |
|
|
(105 |
) |
|
|
(210 |
) |
|
|
(201 |
) |
Less Stock-based compensation |
|
(3,159 |
) |
|
|
(2,450 |
) |
|
|
(6,136 |
) |
|
|
(4,359 |
) |
Less Restructuring costs, net |
|
(15 |
) |
|
|
(140 |
) |
|
|
(1,089 |
) |
|
|
(285 |
) |
Less Acquisition, integration and other costs |
|
(838 |
) |
|
|
- |
|
|
|
(1,207 |
) |
|
|
183 |
|
Less Efficiency program costs |
|
- |
|
|
|
(235 |
) |
|
|
(48 |
) |
|
|
(366 |
) |
Less COVID-19 related expenses |
|
(20 |
) |
|
|
(62 |
) |
|
|
(22 |
) |
|
|
(248 |
) |
Non-GAAP Operating Expenses |
$ |
47,003 |
|
|
$ |
40,510 |
|
|
$ |
93,298 |
|
|
$ |
91,829 |
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income and Adjusted EBITDA |
|
|
|
|
|
|
|
GAAP net income (loss) |
|
7,006 |
|
|
|
1,845 |
|
|
|
11,397 |
|
|
|
(4,012 |
) |
Interest and other expense |
|
1,633 |
|
|
|
5,498 |
|
|
|
7,306 |
|
|
|
10,781 |
|
Provision for income taxes |
|
359 |
|
|
|
717 |
|
|
|
841 |
|
|
|
839 |
|
GAAP Operating Income |
|
8,998 |
|
|
|
8,060 |
|
|
|
19,544 |
|
|
|
7,608 |
|
Amortization of intangible assets |
|
105 |
|
|
|
105 |
|
|
|
210 |
|
|
|
201 |
|
Stock-based compensation |
|
3,637 |
|
|
|
2,726 |
|
|
|
7,054 |
|
|
|
4,835 |
|
Restructuring costs, net |
|
15 |
|
|
|
140 |
|
|
|
1,089 |
|
|
|
285 |
|
Acquisition, integration and other costs |
|
838 |
|
|
|
- |
|
|
|
1,207 |
|
|
|
(183 |
) |
Efficiency program costs |
|
- |
|
|
|
235 |
|
|
|
48 |
|
|
|
366 |
|
COVID-19 related expenses |
|
20 |
|
|
|
62 |
|
|
|
22 |
|
|
|
248 |
|
Non-GAAP Operating Income |
$ |
13,613 |
|
|
$ |
11,328 |
|
|
$ |
29,174 |
|
|
$ |
13,360 |
|
Depreciation |
|
2,202 |
|
|
|
2,172 |
|
|
|
4,321 |
|
|
|
4,314 |
|
Adjusted EBITDA |
$ |
15,815 |
|
|
$ |
13,500 |
|
|
$ |
33,495 |
|
|
$ |
17,674 |
|
GAAP net income margin |
|
7.4 |
% |
|
|
2.3 |
% |
|
|
6.0 |
% |
|
|
-2.4 |
% |
Adjusted EBITDA Margin |
|
16.7 |
% |
|
|
17.0 |
% |
|
|
17.7 |
% |
|
|
10.7 |
% |
|
|
|
|
|
|
|
|
Non-GAAP Net Income |
|
|
|
|
|
|
|
GAAP net income (loss) |
|
7,006 |
|
|
|
1,845 |
|
|
|
11,397 |
|
|
|
(4,012 |
) |
Amortization of intangible assets |
|
105 |
|
|
|
105 |
|
|
|
210 |
|
|
|
201 |
|
Stock-based compensation |
|
3,637 |
|
|
|
2,726 |
|
|
|
7,054 |
|
|
|
4,835 |
|
Restructuring costs, net |
|
15 |
|
|
|
140 |
|
|
|
1,089 |
|
|
|
285 |
|
Acquisition, integration and other costs |
|
838 |
|
|
|
- |
|
|
|
1,207 |
|
|
|
(183 |
) |
Efficiency program costs |
|
- |
|
|
|
235 |
|
|
|
48 |
|
|
|
366 |
|
COVID-19 related expenses |
|
20 |
|
|
|
62 |
|
|
|
22 |
|
|
|
248 |
|
Loss on Extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
3,748 |
|
|
|
7 |
|
Tax impact of non-GAAP adjustments |
|
(10 |
) |
|
|
(31 |
) |
|
|
(159 |
) |
|
|
(41 |
) |
Non-GAAP Net Income |
$ |
11,611 |
|
|
$ |
5,082 |
|
|
$ |
24,616 |
|
|
$ |
1,706 |
|
Weighted-average share count (Basic) |
|
45,211 |
|
|
|
43,719 |
|
|
|
44,887 |
|
|
|
43,486 |
|
Weighted-average share count (Diluted) |
|
46,550 |
|
|
|
44,180 |
|
|
|
46,420 |
|
|
|
43,486 |
|
Non-GAAP Earnings per Share (Basic) |
$ |
0.26 |
|
|
$ |
0.12 |
|
|
$ |
0.55 |
|
|
$ |
0.04 |
|
Non-GAAP Earnings per Share (Diluted) |
$ |
0.25 |
|
|
$ |
0.12 |
|
|
$ |
0.53 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
Free
Cash Flow |
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
6,585 |
|
|
|
(3,507 |
) |
|
|
18,898 |
|
|
|
(9,112 |
) |
Capital expenditures |
|
(1,021 |
) |
|
|
(1,733 |
) |
|
|
(2,275 |
) |
|
|
(3,212 |
) |
Free Cash Flow |
$ |
5,564 |
|
|
$ |
(5,240 |
) |
|
|
$ |
16,623 |
|
|
$ |
(12,324 |
) |
Free Cash Flow conversion from Adjusted EBITDA |
|
35.2 |
% |
|
|
-38.8 |
% |
|
|
49.6 |
% |
|
|
-69.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
|
|
|
Condensed Consolidated Balance Sheets |
|
|
|
(unaudited -
in thousands) |
|
|
|
|
|
|
|
|
June
30, |
|
December
31, |
|
|
2021 |
|
|
|
2020 |
|
Assets |
|
|
|
Current
Assets |
|
|
|
Cash and Cash Equivalents |
$ |
53,337 |
|
|
$ |
79,899 |
|
Restricted Cash |
|
1,422 |
|
|
|
1,422 |
|
Accounts receivable, net of allowances of $1,369 and $1,478 |
|
|
at June 30, 2021 and December 31, 2020, respectively |
|
58,746 |
|
|
|
78,614 |
|
Inventories |
|
24,242 |
|
|
|
26,568 |
|
Prepaid Expenses |
|
8,774 |
|
|
|
6,044 |
|
Contract Assets |
|
21,828 |
|
|
|
18,579 |
|
Other Current Assets |
|
2,265 |
|
|
|
2,366 |
|
Total
Current Assets |
|
170,614 |
|
|
|
213,492 |
|
|
|
|
|
Property and Equipment, Net |
|
14,762 |
|
|
|
16,814 |
|
Goodwill |
|
32,643 |
|
|
|
32,643 |
|
Right of Use Assets |
|
26,561 |
|
|
|
29,430 |
|
Deferred Tax Assets, Net |
|
6,254 |
|
|
|
6,801 |
|
Other Long-Term Assets |
|
5,871 |
|
|
|
5,958 |
|
Total
Assets |
$ |
256,705 |
|
|
$ |
305,138 |
|
|
|
|
|
Liabilities and Stockholders' Deficit |
|
|
|
Current
Liabilities |
|
|
|
Accounts Payable |
$ |
21,775 |
|
|
$ |
21,823 |
|
Accrued Compensation and Benefits |
|
23,103 |
|
|
|
29,105 |
|
Accrued Expenses and Other Current Liabilities |
|
32,904 |
|
|
|
42,264 |
|
Income Taxes Payable |
|
1,648 |
|
|
|
1,664 |
|
Short-Term Debt |
|
16,961 |
|
|
|
4,941 |
|
Deferred Revenues |
|
80,745 |
|
|
|
87,974 |
|
Total
Current Liabilities |
|
177,136 |
|
|
|
187,771 |
|
|
|
|
|
Long-Term Debt |
|
165,178 |
|
|
|
202,759 |
|
Long-Term Deferred Revenues |
|
10,838 |
|
|
|
11,284 |
|
Long-Term Lease Liabilities |
|
25,819 |
|
|
|
28,462 |
|
Other Long-Term Liabilities |
|
7,476 |
|
|
|
7,786 |
|
Total
Liabilities |
|
386,447 |
|
|
|
438,062 |
|
|
|
|
|
Stockholders' Deficit |
|
|
|
Common Stock |
|
452 |
|
|
|
442 |
|
APIC |
|
1,029,675 |
|
|
|
1,036,658 |
|
Accumulated Deficit |
|
(1,156,950 |
) |
|
|
(1,168,347 |
) |
Accumulated Other Comprehensive Loss |
|
(2,919 |
) |
|
|
(1,677 |
) |
Total
Stockholders' Deficit |
|
(129,742 |
) |
|
|
(132,924 |
) |
|
|
|
|
Total
Liabilities and Stockholders' Deficit |
$ |
256,705 |
|
|
$ |
305,138 |
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
|
|
|
Condensed Consolidated Statements of Cash
Flows |
|
|
|
(unaudited -
in thousands) |
|
|
|
|
|
|
|
|
Six Months
Ended |
|
June 30, |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
Cash
flows from operating activities: |
|
|
|
Net income (loss) |
$ |
11,397 |
|
|
$ |
(4,012 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
4,321 |
|
|
|
4,330 |
|
Provision for doubtful accounts |
|
270 |
|
|
|
1,205 |
|
Stock-based compensation expense |
|
6,702 |
|
|
|
4,835 |
|
Non-cash provision for restructuring |
|
927 |
|
|
|
- |
|
Non-cash interest expense |
|
257 |
|
|
|
3,433 |
|
Loss on extinguishment of debt |
|
2,579 |
|
|
|
- |
|
Unrealized foreign currency transaction gains |
|
(1,468 |
) |
|
|
(112 |
) |
Benefit from deferred taxes |
|
547 |
|
|
|
383 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
19,599 |
|
|
|
18,783 |
|
Inventories |
|
2,326 |
|
|
|
(484 |
) |
Prepaid expenses and other assets |
|
(2,629 |
) |
|
|
(547 |
) |
Accounts payable |
|
(48 |
) |
|
|
(22,003 |
) |
Accrued expenses, compensation and benefits and other
liabilities |
|
(14,942 |
) |
|
|
(4,057 |
) |
Income taxes payable |
|
(16 |
) |
|
|
66 |
|
Deferred revenue and contract assets |
|
(10,924 |
) |
|
|
(10,932 |
) |
Net
cash provided by (used in) operating activities |
|
18,898 |
|
|
|
(9,112 |
) |
|
|
|
|
Cash
flows from investing activities: |
|
|
|
Purchases of property and equipment |
|
(2,275 |
) |
|
|
(3,212 |
) |
Net
cash used in investing activities |
|
(2,275 |
) |
|
|
(3,212 |
) |
|
|
|
|
Cash
flows from financing activities: |
|
|
|
Proceeds from revolving line of credit |
|
- |
|
|
|
22,000 |
|
Proceeds from long-term debt |
|
180,000 |
|
|
|
7,800 |
|
Repayment of debt |
|
(205,824 |
) |
|
|
(695 |
) |
Payments for repurchase of outstanding Notes |
|
- |
|
|
|
(28,867 |
) |
Proceeds from the issuance of common stock under employee stock
plans |
|
363 |
|
|
|
- |
|
Common stock repurchases for tax withholdings for net settlement of
equity awards |
|
(14,038 |
) |
|
|
(2,357 |
) |
Payment for loss on extinguishment of debt |
|
(1,169 |
) |
|
|
- |
|
Partial unwind capped call cash receipt |
|
- |
|
|
|
875 |
|
Payments for credit facility issuance costs |
|
(2,574 |
) |
|
|
(289 |
) |
Net
cash (used in) provided by financing activities |
|
(43,242 |
) |
|
|
(1,533 |
) |
|
|
|
|
Effect of
exchange rate changes on cash, cash equivalents, and restricted
cash |
|
56 |
|
|
|
682 |
|
Net
(decrease) increase in cash, cash equivalents, and restricted
cash |
|
(26,563 |
) |
|
|
(13,175 |
) |
Cash, cash
equivalents and restricted cash at beginning of the period |
|
83,638 |
|
|
|
72,575 |
|
Cash, cash
equivalents and restricted cash at end of the period |
$ |
57,075 |
|
|
$ |
59,400 |
|
Supplemental information: |
|
|
|
Cash and
cash equivalents |
$ |
53,337 |
|
|
$ |
55,662 |
|
Restricted
cash |
|
1,422 |
|
|
|
1,663 |
|
Restricted
cash included in other long-term assets |
|
2,316 |
|
|
|
2,075 |
|
Total cash,
cash equivalents and restricted cash shown in the statement of cash
flows |
$ |
57,075 |
|
|
$ |
59,400 |
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
|
Supplemental Revenue Information |
|
|
|
(unaudited -
in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30, |
|
Mar 31, |
|
Jun 30, |
|
|
|
|
|
2021 |
|
2021 |
|
2020 |
|
|
|
|
|
Revenue Backlog* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
Revenue |
$ 91.6 |
|
$ 97.5 |
|
$ 85.7 |
|
|
|
|
Other
Backlog |
309.4 |
|
319.3 |
|
337.9 |
|
|
|
|
Total
Revenue Backlog |
$ 401.0 |
|
$ 416.8 |
|
$ 423.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The expected timing of recognition of revenue backlog as of June
30, 2021 is as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
2023 |
|
Thereafter |
|
Total |
|
|
|
|
|
|
|
|
|
|
Deferred Revenue |
$ 57.9 |
|
$ 27.0 |
|
$ 3.4 |
|
$ 3.3 |
|
$ 91.6 |
Other Backlog |
61.3 |
|
100.0 |
|
76.3 |
|
71.8 |
|
$ 309.4 |
Total Revenue Backlog |
$ 119.2 |
|
$ 127.0 |
|
$ 79.7 |
|
$ 75.1 |
|
$ 401.0 |
|
|
|
|
|
|
|
|
|
|
*A definition of
Revenue Backlog is included in our Form 10-K and the supplemental
financial and operational data sheet available on our investor
relations webpage at ir.avid.com. |
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