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Avid Posts Q4 Loss - Broadcasting & Cable

Avid Posts Q4 Loss

But touts strategic progress
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Editing and storage supplier Avid Technology reported another quarterly loss, posting a net loss of $31.9 million, or $.86 per share, for the fourth quarter of 2008 compared to net income of $3.9 million, or $.09 per share, for the same period last year. Revenues also declined to $206.7 million compared to $258.5 million for the same period in 2007

Avid said the quarterly loss included goodwill and intangible asset non-cash impairment charges associated with the company's Consumer Video segment, amortization of intangibles, stock-based compensation, restructuring costs, net gains from product line divestitures and related taxes collectively totaling $22.6 million.

Avid also posted a loss for the third quarter of 2008 back in October, when it announced the elimination of 500 positions and the sale of its Montreal-based Softimage 3D animation business as part of a broad restructuring. In a conference call to discuss the Q4 results, CEO Gary Greenfield, a turnaround specialist who joined Avid in late 2007, conceded that that Q4 results were mixed but said the company was making “positive steps” towards profitability.

“Moving into 2009 you’ll see a more unified Avid,” says Greenfield.

Avid is still in the process of streamlining its corporate structure and consolidating multiple business units, which is part of the reason it declined to give financial guidance for 2009. Greenfield said he was looking forward to returning to the floor of the NAB show in Las Vegas, which Avid skipped last year.

While Avid’s footprint on the floor will be smaller than in previous years, says Greenfield, “having a presence on the floor allows us to attract a greater number of prospects and folks who may not be familiar with Avid.”

Overall, professional video customers are taking a “wait-and-see” approach to capital expenditures due to the weak economy, Greenfield added. But he believes Avid is in a better competitive position than it was a year ago and expects the company

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