Avid said that it expects its revenue for the first quarter of 2012 to be approximately $152m, down 9% from the same period a year ago, and down 18% versus the previous quarter when Avid posted its first GAAP net profit since 2007.
The consensus analyst estimates for the quarter was revenue of $161.1m.
The company attributed the results to weaker demand in its creative enthusiast (consumer) business, where revenue declined approximately 30 percent compared to the same period a year ago. The company said that revenue in the rest of its businesses was down modestly compared to last year.
Avid expects to report a GAAP operating loss of approximately $15m in the first quarter. Excluding charges of approximately $7m, Avid says its non-GAAP operating for the quarter is expected to be approximately $8m, versus a non-GAAP operating profit of $900,000 last year.
Avid did not say how these results will impact its results for the full year 2012. Avid most recently provided guidance on its Q4 2011 conference call with equity analysts when CFO Ken Sexton said he expects the company’s 2012 revenue to grow in the “low single digits” driven by growth from media enterprise customers. At that time, Sexton said Avid could achieve a non-GAAP operating profit of 5% for the year even if revenue is flat, and that it “could report a GAAP net income for 2012.”
Avid said it ended the quarter with a cash balance of approximately $50m and no bank debt.
Press Release: Avid Provides Preliminary First Quarter 2012 Results
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