Avid Announces Full Year Results, Nears Q4 Break Even as Revenue Increases 12 Percent

Posted by Joe Zaller
Feb 04 2011

Avid announced that its revenue for the fourth quarter of 2010 was $195.3m, an increase of 12% versus the same period a year ago, and an increase of 18% versus the previous quarter.

The company came very close to breaking even in the quarter, posting a GAAP net loss of $571,000, compared to a GAAP net loss of $17.9m during the same period a year ago, and a GAAP net loss of $10m during the previous quarter.

On a non-GAAP basis (excluding various charges), the company said its net income for the fourth quarter of 2010 was $14.2m, compared to a non-GAAP net loss of $1.4m during Q4 2009, and a non-GAAP net income of $1.6m last quarter.

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Highlights for the fourth quarter:

  • Video revenue in the quarter was $117.8m, up 11% versus Q4 2009, and up 18% versus the previous quarter.  Video revenue accounted for 60% of the total revenue during the quarter.
  • Audio revenue in the quarter was $77.6m, up 13% versus Q4 2009, and up 20% versus the previous quarter.
  • Revenue from products was $162.9, up 16% versus Q4 of last year, and up 21% versus the previous quarter.  Product revenue accounted for 83% of the total revenue during the quarter.
  • Service revenue in the quarter declined 7% to $15.1m versus last year, and fell by more than 50% versus the $30.8m achieved last quarter.

 

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For the full year, the company’s revenue was $678.5m, up 8% over 2009, and above the previously issued full year guidance of $655m – $665m.

On a GAAP basis, Avid lost $37m in 2010 versus a loss of $68.4m in 2009. Excluding charges, the company said its non-GAAP net income for 2010 was $9.2m, compared to a non-GAAP net loss of $12.7m in 2009.

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Highlights for the full year:

  • Video revenue in 2010 was $395.9, up 6% versus 2009.  Video revenue accounted for 58% of the company’s total revenue in 2010, down slightly from 60% of revenue in 2009
  • Audio revenue in 2010 was $282.7m, up 11% versus 2009.
  • Revenue from products in 2010 was $560m, up 10% versus 2009. Product revenue accounted for 83% of the company’s total revenue in 2010, up slightly from 81% in 2009
  • Service for 2010  was $118.6m, down about 1% versus 2009.

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According to company chairman and CEO Gary Greenfield the company’s return to non-GAAP net income for 2010 is a significant milestone in the transformation of the business. “We feel well positioned from a product and financial standpoint as we move into 2011,” said Greenfield.

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You can read the full Avid full Q4 and full year earnings release here.

Information about Avid’s Q3 2010 performance is here.

Information on Avid’s previously issued financial guidance is here.

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