Avid today announced that it is postponing the release of its Q4 and full year 2012 financial results and conference call in order “to provide additional time for the company to evaluate its current and historical accounting treatment related to bug fixes, upgrades and enhancements to certain products which the company has provided to certain customers.”
Avid was originally scheduled to issue its results on Tuesday February 26, 2013.
The company said that the need to evaluate the accounting treatment arose during its normal review of its financial results for the fourth quarter and full year 2012, and that it is “working diligently to complete its evaluation, but is currently unable to estimate when the evaluation will be completed.”
Investors did not like the news, and sent the company’s shares down more than 11 percent following the announcement.
The news comes two weeks after Avid said it had named Louis Hernandez to replace Gary Greenfield as the company’s president and CEO.
At that time, Hernandez said “It is an exciting opportunity to lead Avid at this very important juncture in the company’s history. The company is well positioned for growth and global expansion in this fast-moving marketplace. It is exciting to be working with the Avid team, as we drive results and value for our customers, employees, and shareholders.”
Avid is one of the most storied names in the broadcast industry and the company has been at the forefront of technological innovation for 25 years. However, the company has struggled to achieve profitability over the past several years and has gone through multiple rounds of layoffs.
Today’s announcement is not the first time the company in recent memory that Avid has made pre-announcements about its quarterly results. Last year, the company issued a profit warning prior to the release of its results for the first quarter of 2012, and then subsequently sold off its consumer audio and video businesses, which contributed $91m in revenue, for approximately $19m.
Avid issued a second profit warning prior to the release of its results for the third quarter of 2012, when it posted a loss of $17.4m after its revenue dropped 23 percent versus the previous year and 19% versus the previous quarter.
Despite its financial woes over the past few years, our research shows that Avid continues to enjoy a strong brand reputation and customer loyalty. With new management in place and the 2013 NAB Show just around the corner, it will be interesting to see what strategies the company adopts to meet the needs of its customers and return to profitability.
Press Release: Avid Postpones its Fourth Quarter Earnings Release
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