Nonlinear editing and video storage supplier Avid has restated its third-quarter financial results, which initially were released on Oct. 22, after correcting errors in how it recognized revenue from some international shipments near the end of the quarter. The restating of the results for the third quarter and nine months that ended September 30, 2009 meant that compared to the previous results, revenues decreased by $1.6 million, from $153.7 million to $152.1 million.
Avid had previously announced the restatement, which delayed the filing of its Form 10-Q from Nov. 9 to Nov. 16. The company’s shares were down $0.52, or some 4%, in NASDAQ trading Tuesday.
Avid said the investigation by its Audit Committee into the initial Q3 numbers had revealed “a material weakness in the design and operating effectiveness of its controls and procedures in Europe relating to ensuring that revenue is recognized only after transfer of title and risk of loss to the customer.” However, the company added that the adjustments, which also lowered gross profit by $1.1 million and reduced income taxes by $0.1 million, were related to the timing of revenue recognition, not the amount, and that the affected revenue would be recognized in the fourth quarter of 2009.
The revised Q3 2009 revenues were down 30% from the same period in 2008, when Avid recorded $217.1 million. The company’s net loss for the quarter was $17.2 million, or $0.46 per share, compared to a net loss of $66.4 million, or $1.80 per share, in the third quarter of last year.