Avid pre-announced its results for the third quarter of 2012, saying that it expects to report revenue in the range of $125m to $127m, 23% lower than the same period a year ago, and 19% lower than the previous quarter.
Backing out the $4m of sales attributable to Avid’s legacy consumer business, Avid’s Q3 2011 revenue from the professional audio and video business was $121m to $123m down 14% to 15% compared to on-going revenue for the third quarter of 2011 of $143m. Last quarter, Avid’s pro audio and video revenue was $143.7m.
Avid attributed the lower than expected results to “sales execution in the Americas region and some transitional issues related to the implementation of the strategic actions announced by the company in July 2012.”
The company says it expects to post a GAAP net loss of $17m to $19m for the quarter, compared to a GAAP net loss of $7.6m last year, and a GAAP net loss of $39m last quarter. The estimated non-GAAP net loss for the third quarter of 2012 is expected to be $3m to $5m.
On an operating basis, the GAAP loss for the third quarter of 2012 is expected to be $16m to $18m. The non-GAAP operating loss for the third quarter is expected to be $2m to $4m.
This is second time this year that Avid has pre-announced quarterly results. The company also issued a profit warning in Q1 2012 due to lower sales in its consumer video and audio business, which was subsequently divested in July 2012.
According to a Forbes article, the results were below the consensus expectations of equity analysts who were looking for Q3 2011 revenue of revenue of $145.2 million and a profit of $0.14 per share.
Avid also said it ended the quarter with no bank debt and a cash balance of $71m, up from $59.4m last quarter. The company has consistently generated cash this year and has more than doubled its cash balance since the end of 2011.
Despite the lower than expected results, one analyst said in a note to clients that he believes Avid “is not losing share in its core ongoing segments and customers’ spending intentions are largely un-phased by the global macro uncertainty, at this time. That said, there are no product cycles or other material catalysts to suggest Avid’s business will experience a growth rate that is above broader industry levels.”
The company will publish its full results on October 29, 2012.
Press Release: Avid Provides Preliminary Third Quarter 2012 Results
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