Avid® (NASDAQ: AVID), a leading technology provider that powers the
media and entertainment industry, today announced its financial
results for the first quarter of 2022, which ended on March 31,
2022.
Total revenue increased 6.7% year-over-year in the first
quarter, led by enterprise and creative subscription growth as well
as favorable demand across product offerings, continuing the
sustained growth trend with the fifth consecutive quarter of
year-over-year revenue growth. During the first quarter, the
recurring revenue components of the Company’s business remained
strong with subscription revenue of $33.0 million, up 32.5%
year-over-year, and subscription & maintenance revenue of $61.3
million, up 12.0% year-over-year.
The revenue growth, combined with improved gross margin,
resulted in a 17.9% year-over-year improvement in Non-GAAP Earnings
per Share to $0.33.
First Quarter 2022 Financial and Business
Highlights
- Subscription revenue was $33.0
million, an increase of 32.5% year-over-year.
- Paid Cloud-enabled software
subscriptions increased by 24.1% year-over-year to approximately
431,800 as of March 31, 2022, and increased by approximately 21,200
during the first quarter.
- Subscription and Maintenance revenue
was $61.3 million, up 12.0% year-over-year.
- Total revenue was $100.6 million, an
increase of 6.7% year-over-year.
- Gross margin was 66.3%, an increase
of 120 basis points year-over-year. Non-GAAP Gross Margin was
66.8%, an increase of 120 basis points year-over-year.
- Operating expenses were $53.5
million, an increase of 5.1% year-over-year. Non-GAAP
Operating Expenses were $49.7 million, an increase of 7.4%
year-over-year.
- Net income was $10.6 million, an
increase of 141.1% year-over-year. Non-GAAP Net Income was $14.8
million, an increase of 13.6% year-over-year.
- Adjusted EBITDA was $19.3 million,
an increase of 9.0% year-over-year. Adjusted EBITDA Margin was
19.2%, an increase of 50 basis points
year-over-year.
- Net income per common share was
$0.23, an increase of 130.0% year-over-year. Non-GAAP Earnings per
Share was $0.33, an increase of 17.9% year-over-year.
- Net cash provided by operating
activities was $7.9 million in the quarter, a decrease of ($4.4)
million compared to the prior year period due to working capital
changes.
- Free Cash Flow was $4.7 million in
the quarter, a decrease of ($6.4) million compared to the prior
year period due to working capital changes.
- LTM Recurring Revenue % was 79.1% of
the Company’s revenue for the 12 months ended March 31, 2022, up
from 75.3% for the 12 months ended March 31, 2021.
- Annual Contract Value was $339.0
million as of March 31, 2022, up 12.3% from $302.0 million as of
March 31, 2021
- Repurchased 354,472 shares for $10.8
million during the first quarter, under the $115 million share
repurchase authorization announced on September 9, 2021.
Jeff Rosica, Avid’s CEO and President, stated, “We continued to
have success growing our subscription business as more enterprise
customers adopt subscription licensing coupled with continued
strength in subscriptions for creative individuals. While we
continue to see strong customer demand and business activity for
our solutions, we have seen a tightening of supply for several
components for our audio integrated solutions at the end of the
first quarter that impacted our ability to meet customer orders,
resulting in first quarter revenue at the lower end of our
guidance.” Mr. Rosica added, “The global supply chain continues to
present challenges, which could cause some uneven quarterly
performance in the near-term. We currently believe these challenges
to be temporary, and remain confident in our growing subscription
and healthy maintenance business and in our ability to meet our
2022 targets. We’ve recently introduced several exciting new
product enhancements for Pro Tools, Media Composer and
MediaCentral, and in April, we added new pricing tiers for Pro
Tools entry-level and high-end users, as we continue to execute on
our subscription growth strategy.”
Ken Gayron, Executive Vice President and Chief
Financial Officer of Avid, said, “We continued to make substantial
progress in driving our higher gross margin subscription revenue
during the first quarter. While we had strong customer demand for
audio integrated solutions, we ended the quarter with about $10
million more integrated solutions backlog than typical because of
tightening supply chain constraints late in the
quarter. Notwithstanding these short-term challenges, we
continue to feel confident in our business trajectory and our
strategy for profitable growth. Consequently, we are not changing
our full-year 2022 guidance.” Mr. Gayron continued, “Additionally,
given our high confidence in our strategy and long-term model, and
with the goal of enhancing shareholder returns, we continued to
repurchase shares in the first quarter under the Company’s share
repurchase program.”
Second Quarter and Full Year 2022 Guidance
For the second quarter of 2022, Avid is providing guidance for
Revenue, Subscription & Maintenance Revenue, Non-GAAP Earnings
per Share and Adjusted EBITDA. For the full year 2022, Avid is
affirming its guidance for Revenue, Subscription & Maintenance
Revenue, Non-GAAP Earnings per Share, Adjusted EBITDA and Free Cash
Flow, that was issued on March 1, 2022.
|
|
($ in millions, except per share amounts) |
Q2 2022 Guidance |
Revenue |
$92.0 -
$104.0 |
Subscription & Maintenance Revenue |
$60.0 -
$64.0 |
Non-GAAP Earnings per Share |
$0.19 -
$0.32 |
Adjusted EBITDA |
$13.5 -
$19.5 |
Q2 Non-GAAP Earnings per Share assumes 45.5 million shares
outstanding. |
|
|
|
Full Year 2022 Guidance |
Revenue |
$430 -
$450 |
Subscription & Maintenance Revenue |
$266 -
$274 |
Non-GAAP Earnings per Share |
$1.40 -
$1.51 |
Adjusted EBITDA |
$84 -
$94 |
Free Cash Flow |
$60 -
$67 |
2022 Non-GAAP Earnings per Share assumes 46.2
million shares outstanding. |
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 Q1 2022 Business Update presentation posted on Avid’s
Investor Relations website at ir.avid.com.
Conference Call to Discuss First Quarter 2022 Results on
May 4, 2022
Avid will host a conference call to discuss its financial
results for the first quarter 2022 on Wednesday, May 4, 2022 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 &
Presentations tab at ir.avid.com. 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 and
can be accessed on the Events & Presentations tab of the Avid
Investor Relations website shortly after the completion of the
call.
2022 Investor Day and Conference
Participation
Avid will host an Investor Day on Tuesday, May 24, 2022, where
our executive team will provide a detailed update of its business
and strategy. The online event is open to all investors. Please
visit the Events and Presentations page on ir.avid.com for event
details and registration. The Investor Day presentation will also
be available for a limited time on the Avid Investor Relations
website shortly after the completion of the event.
In addition, members of our executive team will be participating
in upcoming investor conferences. CEO Jeff Rosica will participate
in a fireside chat at the 50th Annual J.P. Morgan Global
Technology, Media and Communications Conference on Wednesday, May
25, 2022, at 2:30 pm ET. CFO Ken Gayron will participate in a
fireside chat at the B. Riley 22nd Annual Institutional Investor
Conference on Thursday, May 26, 2022, at 4:00 pm ET. Investors are
invited to view the live webcasts of these sessions. Viewing
details will be available at the events and presentations page of
our investor relations website at
ir.avid.com/events-and-presentations.
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 Earnings 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 Earnings 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 ongoing coronavirus
(COVID-19) pandemic and subsequent variants on our business,
suppliers, consumers, customers and employees; economic, social,
and political instability, security concerns, and the risk of war,
armed conflict and/or cyber conflict, particularly originating in,
and complicated by, areas of heightened geopolitical tension and
open conflict such as Ukraine, where we have outsourced research
and development activities, Russia, and bordering territories; 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, armed conflict and related sanctions, weather
conditions, or health pandemics; disruptions, inefficiencies,
and/or complications in our operations and/or dynamic and
unpredictable global supply chain , including interruptions,
delays, complications, and other impacts related to armed conflict
and/or cyber conflict and related international sanctions and
reprisals and the ongoing COVID-19 pandemic and subsequent
variants; the costs, disruption, and diversion of management's
attention due to the ongoing COVID-19 pandemic and subsequent
variants, armed conflict and/or cyber conflict and related
international sanctions and reprisals; 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 included 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.
Avid Powers Greater Creators
People who create media for a living become greater creators
with Avid’s award-winning technology solutions to make, manage and
monetize today’s most celebrated video and audio content—from
iconic movies and bingeworthy TV series, to network news and
sports, to recorded music and the live stage. What began more than
30 years ago with our invention of nonlinear digital video editing
has led to individual artists, creative teams and organizations
everywhere subscribing to our powerful tools and collaborating
securely in the cloud. We continue to re-imagine the many ways
editors, musicians, producers, journalists and other content
creators will bring their stories to life. Discover the
possibilities at avid.com and join the conversation on social media
with the multitude of brilliant creative people who choose Avid for
a lifetime of success.
© 2022 Avid Technology, Inc., Avid and its logo are property of
Avid. All rights reserved. Other trademarks are property of their
respective owners.
|
|
Contacts |
|
|
Investor
contact: |
PR
contact: |
Whit
Rappole |
Jim
Sheehan |
Avid
|
Avid |
ir@Avid.com |
jim.sheehan@Avid.com |
|
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|
|
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
|
|
Condensed Consolidated Statements of
Operations |
|
|
|
|
|
(unaudited - in thousands, except per share data) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
Net revenues: |
|
|
|
|
|
Subscription |
|
$ |
32,954 |
|
|
$ |
24,868 |
|
|
Maintenance |
|
|
28,327 |
|
|
|
29,852 |
|
|
Integrated solutions and other |
|
|
39,368 |
|
|
|
39,644 |
|
|
Total net revenues |
|
|
100,649 |
|
|
|
94,364 |
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
Subscription |
|
|
5,602 |
|
|
|
2,615 |
|
|
Maintenance |
|
|
5,277 |
|
|
|
5,574 |
|
|
Integrated solutions and other |
|
|
23,006 |
|
|
|
24,759 |
|
|
Total cost of revenues |
|
|
33,885 |
|
|
|
32,948 |
|
|
|
|
|
|
|
|
Gross profit |
|
|
66,764 |
|
|
|
61,416 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Research and development |
|
|
16,736 |
|
|
|
15,417 |
|
|
Marketing and selling |
|
|
21,927 |
|
|
|
20,744 |
|
|
General and administrative |
|
|
14,811 |
|
|
|
13,635 |
|
|
Restructuring costs, net |
|
|
15 |
|
|
|
1,074 |
|
|
Total operating expenses |
|
|
53,489 |
|
|
|
50,870 |
|
|
|
|
|
|
|
|
Operating income |
|
|
13,275 |
|
|
|
10,546 |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(1,476 |
) |
|
|
(2,118 |
) |
|
Other expense, net |
|
|
(87 |
) |
|
|
(3,555 |
) |
|
Income before income taxes |
|
|
11,712 |
|
|
|
4,873 |
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
1,126 |
|
|
|
482 |
|
|
Net income |
|
$ |
10,586 |
|
|
$ |
4,391 |
|
|
|
|
|
|
|
|
Net income per common share - basic |
|
$ |
0.24 |
|
|
$ |
0.10 |
|
|
Net income per common share - diluted |
|
$ |
0.23 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic |
|
|
44,817 |
|
|
|
44,559 |
|
|
Weighted-average common shares outstanding - diluted |
|
|
45,408 |
|
|
|
46,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
|
Reconciliations of GAAP Financial Measures to Non-GAAP
Financial Measures |
(unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
GAAP Revenue |
|
|
|
|
GAAP Revenue |
|
$ |
100,649 |
|
|
$ |
94,364 |
|
|
|
|
|
|
Non-GAAP Gross Profit |
|
|
|
|
GAAP Gross Profit |
|
|
66,764 |
|
|
|
61,416 |
|
Stock-based compensation |
|
|
426 |
|
|
|
440 |
|
Non-GAAP Gross Profit |
|
$ |
67,190 |
|
|
$ |
61,856 |
|
GAAP Gross Margin |
|
|
66.3 |
% |
|
|
65.1 |
% |
Non-GAAP Gross Margin |
|
|
66.8 |
% |
|
|
65.6 |
% |
|
|
|
|
|
Non-GAAP Operating Expenses |
|
|
|
|
GAAP Operating Expenses |
|
|
53,489 |
|
|
|
50,870 |
|
Less Amortization of intangible assets |
|
|
(58 |
) |
|
|
(105 |
) |
Less Stock-based compensation |
|
|
(2,996 |
) |
|
|
(2,977 |
) |
Less Restructuring costs, net |
|
|
(15 |
) |
|
|
(1,074 |
) |
Less Acquisition, integration and other costs |
|
|
(459 |
) |
|
|
(369 |
) |
Less Efficiency program costs |
|
|
- |
|
|
|
(48 |
) |
Less Digital Transformation Initiave |
|
|
(243 |
) |
|
|
- |
|
Less COVID-19 related expenses |
|
|
- |
|
|
|
(2 |
) |
Non-GAAP Operating Expenses |
|
$ |
49,718 |
|
|
$ |
46,295 |
|
|
|
|
|
|
Non-GAAP Operating Income and Adjusted EBITDA |
|
|
|
|
GAAP net income |
|
|
10,586 |
|
|
|
4,391 |
|
Interest and other expense |
|
|
1,563 |
|
|
|
5,673 |
|
Provision for income taxes |
|
|
1,126 |
|
|
|
482 |
|
GAAP Operating Income |
|
|
13,275 |
|
|
|
10,546 |
|
Amortization of intangible assets |
|
|
58 |
|
|
|
105 |
|
Stock-based compensation |
|
|
3,422 |
|
|
|
3,417 |
|
Restructuring costs, net |
|
|
15 |
|
|
|
1,074 |
|
Acquisition, integration and other costs |
|
|
459 |
|
|
|
369 |
|
Efficiency program costs |
|
|
- |
|
|
|
48 |
|
Digital Transformation Initiave |
|
|
243 |
|
|
|
- |
|
COVID-19 related expenses |
|
|
- |
|
|
|
2 |
|
Non-GAAP Operating Income |
|
$ |
17,472 |
|
|
$ |
15,561 |
|
Depreciation |
|
|
1,803 |
|
|
|
2,119 |
|
Adjusted EBITDA |
|
$ |
19,275 |
|
|
$ |
17,680 |
|
GAAP net income margin |
|
|
10.5 |
% |
|
|
4.7 |
% |
Adjusted EBITDA Margin |
|
|
19.2 |
% |
|
|
18.7 |
% |
|
|
|
|
|
Non-GAAP Net Income |
|
|
|
|
GAAP net income |
|
|
10,586 |
|
|
|
4,391 |
|
Amortization of intangible assets |
|
|
58 |
|
|
|
105 |
|
Stock-based compensation |
|
|
3,422 |
|
|
|
3,417 |
|
Restructuring costs, net |
|
|
15 |
|
|
|
1,074 |
|
Acquisition, integration and other costs |
|
|
459 |
|
|
|
369 |
|
Efficiency program costs |
|
|
- |
|
|
|
48 |
|
Digital Transformation Initiave |
|
|
243 |
|
|
|
- |
|
COVID-19 related expenses |
|
|
- |
|
|
|
2 |
|
Loss on Extinguishment of debt |
|
|
- |
|
|
|
3,748 |
|
Tax impact of non-GAAP adjustments |
|
|
(3 |
) |
|
|
(149 |
) |
Non-GAAP Net Income |
|
$ |
14,780 |
|
|
$ |
13,005 |
|
Weighted-average share count (Basic) |
|
|
44,817 |
|
|
|
44,559 |
|
Weighted-average share count (Diluted) |
|
|
45,408 |
|
|
|
46,204 |
|
Non-GAAP Earnings per Share (Basic) |
|
$ |
0.33 |
|
|
$ |
0.29 |
|
Non-GAAP Earnings per Share (Diluted) |
|
$ |
0.33 |
|
|
$ |
0.28 |
|
|
|
|
|
|
Free Cash Flow |
|
|
|
|
Net cash provided by operating activities |
|
|
7,916 |
|
|
|
12,313 |
|
Capital expenditures |
|
|
(3,244 |
) |
|
|
(1,254 |
) |
Free Cash Flow |
|
$ |
4,672 |
|
|
$ |
11,059 |
|
Free Cash Flow conversion from Adjusted EBITDA |
|
|
24.2 |
% |
|
|
62.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
|
Condensed Consolidated Balance Sheets |
|
|
|
|
(unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
Assets |
|
|
|
|
Current Assets |
|
|
|
|
Cash and Cash Equivalents |
|
$ |
41,245 |
|
|
$ |
56,818 |
|
Restricted Cash |
|
|
2,013 |
|
|
|
2,416 |
|
Accounts receivable, net of allowances of $1,298 and $1,456 at
March 31, 2021 and December 31, 2021, respectively |
|
|
57,410 |
|
|
|
77,046 |
|
Inventories |
|
|
17,817 |
|
|
|
19,922 |
|
Prepaid Expenses |
|
|
7,137 |
|
|
|
5,464 |
|
Contract Assets |
|
|
25,542 |
|
|
|
18,903 |
|
Other Current Assets |
|
|
1,896 |
|
|
|
1,953 |
|
Total Current Assets |
|
|
153,060 |
|
|
|
182,522 |
|
|
|
|
|
|
Property and Equipment, Net |
|
|
17,742 |
|
|
|
16,028 |
|
Goodwill |
|
|
32,643 |
|
|
|
32,643 |
|
Right of Use Assets |
|
|
23,242 |
|
|
|
24,143 |
|
Deferred Tax Assets, Net |
|
|
4,155 |
|
|
|
5,210 |
|
Other Long-Term Assets |
|
|
14,265 |
|
|
|
13,454 |
|
Total Assets |
|
$ |
245,107 |
|
|
$ |
274,000 |
|
|
|
|
|
|
Liabilities and Stockholders' Deficit |
|
|
|
|
Current Liabilities |
|
|
|
|
Accounts Payable |
|
$ |
21,380 |
|
|
$ |
26,854 |
|
Accrued Compensation and Benefits |
|
|
26,821 |
|
|
|
35,458 |
|
Accrued Expenses and Other Current Liabilities |
|
|
36,457 |
|
|
|
37,552 |
|
Income Taxes Payable |
|
|
145 |
|
|
|
868 |
|
Short-Term Debt |
|
|
8,709 |
|
|
|
9,158 |
|
Deferred Revenues |
|
|
80,744 |
|
|
|
87,475 |
|
Total Current Liabilities |
|
|
174,256 |
|
|
|
197,365 |
|
|
|
|
|
|
Long-Term Debt |
|
|
160,889 |
|
|
|
160,806 |
|
Long-Term Deferred Revenues |
|
|
11,578 |
|
|
|
10,607 |
|
Long-Term Lease Liabilities |
|
|
22,673 |
|
|
|
23,379 |
|
Other Long-Term Liabilities |
|
|
5,730 |
|
|
|
5,917 |
|
Total Liabilities |
|
|
375,126 |
|
|
|
398,074 |
|
|
|
|
|
|
Stockholders' Deficit |
|
|
|
|
Common Stock |
|
|
459 |
|
|
|
455 |
|
Treasury Stock |
|
|
(35,906 |
) |
|
|
(25,090 |
) |
APIC |
|
|
1,026,115 |
|
|
|
1,031,633 |
|
Accumulated Deficit |
|
|
(1,116,373 |
) |
|
|
(1,126,959 |
) |
Accumulated Other Comprehensive Loss |
|
|
(4,314 |
) |
|
|
(4,113 |
) |
Total Stockholders' Deficit |
|
|
(130,019 |
) |
|
|
(124,074 |
) |
|
|
|
|
|
Total Liabilities and Stockholders' Deficit |
|
$ |
245,107 |
|
|
$ |
274,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
Supplemental
Revenue Information |
(unaudited - in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
Dec 31, |
|
March 31, |
|
|
|
|
|
2022 |
|
2021 |
|
2021 |
|
|
|
|
|
Revenue Backlog* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
Revenue |
$ 92.3 |
|
$ 98.1 |
|
$ 97.5 |
|
|
|
|
Other
Backlog |
283.0 |
|
314.7 |
|
319.3 |
|
|
|
|
Total
Revenue Backlog |
$ 375.3 |
|
$ 412.8 |
|
$ 416.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The expected timing of
recognition of revenue backlog as of March 31, 2022 is as
follows: |
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
2023 |
|
2024 |
|
Thereafter |
|
Total |
|
|
|
|
|
|
|
|
|
|
Deferred Revenue |
$ 74.0 |
|
$ 11.9 |
|
$ 4.0 |
|
$ 2.4 |
|
$ 92.3 |
Other Backlog |
99.2 |
|
75.8 |
|
54.5 |
|
53.5 |
|
$ 283.0 |
Total Revenue Backlog |
$ 173.2 |
|
$ 87.7 |
|
$ 58.5 |
|
$ 55.9 |
|
$ 375.3 |
|
|
|
|
|
|
|
|
|
|
*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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
Condensed Consolidated Statements of Cash
Flows |
(unaudited - in thousands) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
Net income |
$ |
10,586 |
|
|
$ |
4,391 |
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: |
|
|
|
Depreciation and amortization |
|
1,803 |
|
|
|
2,119 |
|
(Recovery) Provision for doubtful accounts |
|
(135 |
) |
|
|
83 |
|
Stock-based compensation expense |
|
3,422 |
|
|
|
3,122 |
|
Non-cash provision for restructuring |
|
15 |
|
|
|
912 |
|
Non-cash interest expense |
|
126 |
|
|
|
129 |
|
Loss on extinguishment of debt |
|
- |
|
|
|
2,579 |
|
Loss on Disposal of Fixed Assets |
|
548 |
|
|
|
- |
|
Unrealized foreign currency transaction (gains) loss |
|
(128 |
) |
|
|
(1,432 |
) |
Benefit from deferred taxes |
|
1,055 |
|
|
|
501 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
19,770 |
|
|
|
19,702 |
|
Inventories |
|
2,105 |
|
|
|
(1,048 |
) |
Prepaid expenses and other assets |
|
(2,067 |
) |
|
|
(866 |
) |
Accounts payable |
|
(5,473 |
) |
|
|
(2,604 |
) |
Accrued expenses, compensation and benefits and other
liabilities |
|
(9,993 |
) |
|
|
(9,887 |
) |
Income taxes payable |
|
(723 |
) |
|
|
(259 |
) |
Deferred revenue and contract assets |
|
(12,995 |
) |
|
|
(5,129 |
) |
Net cash provided by operating activities |
|
7,916 |
|
|
|
12,313 |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Purchases of property and equipment |
|
(3,244 |
) |
|
|
(1,254 |
) |
Net cash used in investing activities |
|
(3,244 |
) |
|
|
(1,254 |
) |
|
|
|
|
Cash flows from financing activities: |
|
|
|
Proceeds from long-term debt |
|
- |
|
|
|
180,000 |
|
Repayment of debt |
|
- |
|
|
|
(201,208 |
) |
Repayment of debt principal |
|
(53 |
) |
|
|
(2,346 |
) |
Payments for repurchase of common stock |
|
(10,562 |
) |
|
|
- |
|
Common stock repurchases for tax withholdings for net settlement of
equity awards |
|
(8,936 |
) |
|
|
(7,706 |
) |
Payment for loss on extinguishment of debt |
|
- |
|
|
|
(1,169 |
) |
Payments for credit facility issuance costs |
|
(440 |
) |
|
|
(2,574 |
) |
Net cash used in financing activities |
|
(19,991 |
) |
|
|
(35,003 |
) |
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash |
|
(254 |
) |
|
|
(332 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
(15,573 |
) |
|
|
(24,276 |
) |
Cash, cash equivalents and restricted cash at beginning of the
period |
|
60,556 |
|
|
|
83,638 |
|
Cash, cash equivalents and restricted cash at end of the
period |
$ |
44,983 |
|
|
$ |
59,362 |
|
Supplemental information: |
|
|
|
Cash and cash equivalents |
$ |
41,245 |
|
|
$ |
55,624 |
|
Restricted cash |
|
2,013 |
|
|
|
1,422 |
|
Restricted cash included in other long-term assets |
|
1,725 |
|
|
|
2,316 |
|
Total cash, cash equivalents and restricted cash shown in the
statement of cash flows |
$ |
44,983 |
|
|
$ |
59,362 |
|
|
|
|
|
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