Nonlinear editing supplier Avid Technology posted a first-quarter-2008 loss based on lower revenues than the same period last year and restructuring costs associated with the turnaround the company is attempting under a new management team.
Revenues for the quarter ending March 31 were $198.3 million compared with $218.9 million for the same period in 2007, and the net loss for the quarter was $21.1 million, or $0.54 per share, versus $20,000 ($0.00 per diluted share) in the first quarter of 2007.
Avid’s quarterly loss reflects $9.4 million of amortization, stock-based compensation, restructuring costs and related tax adjustments. Excluding these items, the Tewksbury, Mass.-based company said its non-GAAP (generally accepted accounting principles) loss per share was $0.30. Avid’s income for the same period last year also included $10.6 million of similar charges.
As of March 31, the company’s cash balance totaled $150.4 million, down $74 million since the end of 2007. During the first quarter of 2008, Avid used $93.2 million in cash to repurchase 4.3 million shares of common stock under a previously announced share-buyback program.
“Our first-quarter results were in line with our expectations, and we expect to see improvement in our bottom line as the year progresses,” said Gary Greenfield, who became Avid’s chairman and CEO last December. “We are continuing to make progress on a number of initiatives designed to provide the basis for improved profitability and growth. In addition, the development of Avid’s long-term strategy is proceeding well and we expect to discuss the plan during our second-quarter-results conference call.”
Avid announced new features for its editing products last week in conjunction with the 2008 NAB Show in Las Vegas, including better hardware performance and broader support for new camera formats, as it attempts to win back market share it lost to Apple and Thomson in the broadcast space.