Avid Reports Q1 Progress

Cites strong storage, asset management sales
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Content editing and storage supplier Avid reported Q1 2010 revenues of $156.0 million, a slight bump from $151.6 million in revenues for the same period last year, as it continues to see signs of recovery in both its broadcast and "prosumer" businesses.

Avid's net loss for the quarter was $13.5 million, or $0.36 per share, compared to a net loss of $17.3 million, or $0.47 per share, in the first quarter of 2009. The net loss for the first quarter of 2010 included amortization of intangibles, stock-based compensation, restructuring charges, acquisition-related costs and related tax adjustments, collectively totaling $8.9 million, including the $16 million acquisition of German asset-management firm Blue Order and preliminary expenses associated with moving its headquarters from Tewksbury, Mass. to nearby Burlington, Mass. in June. The operating loss for the first quarter was $13.0 million, including amortization of intangibles, stock-based compensation, restructuring charges and acquisition-related costs, collectively totaling $9.2 million.

The company's cash balance on March 31, 2010 was $74.2 million, or almost $2.00 per share.

Avid's video division recorded $84.4 million in revenues for the quarter, a 4% decrease from $87.5 million in 2009. Video sales "showed good momentum" for Avid's ISIS storage and Interplay asset management products, said Avid CFO Ken Sexton on the earnings call, but softness in automation and graphics products. Audio revenues, on the other hand, recorded a 12% bump from $64.1 million to $71.6 million, which Sexton said was driven by Avid's professional audio products and live system venue line.

Avid Chairman and CEO Gary Greenfield said that Avid enjoyed a strong exhibition at last week's NAB show, where the company unveiled a new Media Composer editor, announced a deal to acquire audio console supplier Euphonix (that deal closed Wednesday) and detailed significant broadcast news sales to CBS News and WHIO in Dayton, Ohio.

"We're pleased with our revenues," said Greenfield. "Overall, our markets continue to slowly stabilize across all segments."

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