Nonlinear editing and video-storage supplier Avid Technology recorded a net loss for the second quarter of 2008 of $10.4 million, or $0.28 per share, compared with a net loss of $6 million, or $0.15 per diluted share, in the second quarter of 2007.
The Tewksbury, Mass.-based company also reported slightly lower revenues for the quarter, $222.9 million for the three-month period ended June 30 compared with $225.3 million for the same period in 2007.
Avid, which is attempting a turnaround after hiring new management last winter, attributed the loss to $10.5 million in amortization, stock-based compensation, restructuring charges and related tax adjustments.
As of June 30, the company’s cash balance was $138.5 million, down $86 million since the end of 2007. During the first quarter, Avid used $93.2 million in cash to repurchase 4.3 million shares of common stock under a previously announced share-buyback program.
Gary Greenfield, Avid chairman and CEO, noted that Avid improved sequentially in revenue and margin from the first quarter of 2008 and also posted a smaller loss and declared that the company’s turnaround was still on schedule.
“In the second half of the year, we plan to build on our strengths in both audio and video and align the organization to better position the company for long-term sustainable value,” Greenfield said in a statement.
In that vein, Greenfield announced on the Q2 earnings call that Avid is combining all its sales, marketing and service operations in one organization that will be headed by Kirk Arnold, who was brought onboard last winter to serve as executive VP and GM of Avid’s professional video business unit.
Greenfield also announced that Avid will be consolidating its various professional and consumer video and audio products into just two divisions, a video business unit and an audio business unit.
Avid Chief Financial Officer Ken Sexton also revealed during the call that it will consolidate portions of its manufacturing and production operations, resulting in the elimination of roughly 50 jobs, and will focus on cutting costs and expanding margins through the implementation of a new customer relationship management (CRM) systems and the potential “off-shoring” or outsourcing of certain functions.