Posts Tagged ‘Avid’

Avid Releases First Financial Results in Nearly Two Years, Revenue Down 11.4 Percent in 2013

Broadcast technology vendor financials, Quarterly Results, SEC Filings | Posted by Joe Zaller
Sep 12 2014

Avid released financial results for the first time in nearly two years, following a protracted audit of it historic accounting treatment of software upgrades, dating back to 2009, which were made available to certain of its customers at no-charge.

The company has now completed the audit, and released financial results for both 2012 and 2013.  Avid has also released re-stated results for 2009-2011, which reflect the results of the audit.

For the full year 2013, Avid’s revenue was $563.4m, down 11.4% versus the previous year.

GAAP net income for the full year 2013 was $21.2m, down sharply from $92.9m in 2012. Non-GAAP income from continuing operations was $57.2 million or $1.46 per share. The company attributed the decline in revenue and net income to the larger portion of revenue from periods prior to 2011 being amortized in 2012 as compared to 2013 due changes in accounting rules.

The results for 2012 and 2013 are shown below, along with re-stated results from 2009-2011.

 

Avid restated earnings

 

“As a result of our restatement and in accordance with GAAP, revenue that had originally been recognized in earlier periods is now being recognized ratably over an extended timeframe,” said Avid EVP and CFO John Frederick. “The amount of revenue earned or to be earned over the entire period of recognition essentially remains unchanged from the amount we historically recognized. There was no change to the cash characteristics of the transactions being restated nor to the Company’s liquidity directly relating to these transactions. As a result of the restatement, the balance sheet reflects a significant increase in deferred revenue, which will be recognized in revenue over a number of years and will provide significant visibility into our future revenues. The revenue recognized from deferred revenue originating in periods prior to 2011 will continue in declining amounts through 2016, creating downward pressure on revenue growth until 2017.”

“We have worked diligently for well over a year on the restatement and are delighted to have completed the process,” said Louis Hernandez, Jr., president and CEO of Avid. “Throughout this period, we have put a premium on maintaining our focus on continued innovation for our customers and reasserting our commitment to being a strategic leader for the media industry with our Avid Everywhere vision. I’m encouraged by the progress we’ve made in executing against our three phase transformational strategy, and specifically with the growth in bookings over the past few quarters. Now that we have completed the restatement process, we are excited to continue our work on the transformation and feel the momentum building.”

Following the filing of Avid’s first quarter 2014 financial report, Avid plans to apply for relisting on the NASDAQ stock exchange, and hopes to be relisted on the NASDAQ stock exchange sometime after becoming current with its SEC reporting obligations. In the interim, Avid stock will continue to trade on OTC Markets — OTC Pink Tier under the trading symbol AVID.

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Related Content:

Avid 2013 10-K Filing

Avid Nears Completion of Accounting Audit, Says Normal Financial Reporting Cycle to Resume in Q3 2014

Avid to be Delisted from NASDAQ on February 25, 2014

Avid Receives Anticipated NASDAQ Delist Letter

New Avid Rights Agreement Will Cause “Substantial Dilution” to Potential Acquirers

Avid Unlikely to Regain Compliance with NASDAQ Listing Requirements by March 2014 Deadline

Avid Technology and Computershare Trust Company as Rights Agent, Rights Agreement Dated as of January 6, 2014

Avid Receives Additional Notice of Potential NASDAQ Delisting

Avid Delays Filing of Q2 2013 Financial Results and Form 10-Q

New Avid Bonus Plan Contemplates “Reorganization Event”

Avid Says its 2009 – 2011 Financial Statements No Longer Reliable

Avid Delays Release of Q4 and Full Year 2012 Results, Shares Fall

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Avid Nears Completion of Accounting Audit, Says Normal Financial Reporting Cycle to Resume in Q3 2014

Broadcast technology vendor financials, Quarterly Results, SEC Filings | Posted by Joe Zaller
Aug 13 2014

Avid, which since February 2013 has been conducting an internal investigation into its current and historical accounting treatment related to software updates, said in a regulatory filing that in approximately four weeks, it expects to have completed its accounting audit and filed its annual report (Form 10-K) for the fiscal year ended December 31, 2013.

Because of its 18 month-long internal accounting audit, the company has not been able to file financial results with securities regulators since the third quarter of 2012.

This delay ultimately resulted in Avid’s stock being delisted from The NASDAQ Stock Market on February 25, 2014.

But with today’s announcement, it appears that the audit is nearly completed.

Avid now says that its 2013 Form 10-K will include results for the fiscal year ended December 31, 2012 and restated results for the fiscal year ended December 31, 2011. The company said it also intends to file its Form 10-Q for each of the three-month periods ended March 31, June 30 and September 30, 2013 concurrently with the 2013 Form 10-K filing.

The company will then file its Form 10-Q for the period ended March 31, 2014 approximately one week after filing the 2013 Form 10-K and file Form 10-Q for the period ended June 30, 2014 approximately 40 days later.

Avid then expects to be back to a normal reporting cycle beginning with the reporting of results for the third quarter of 2014.

When the Avid does report its financials, it will bring an end to a process that began in February 2013 when the company announced that it would delay the announcement of its Q4 and full year 2012 results 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.”

That news came just two weeks after Avid named Louis Hernandez, Jr. to replace Gary Greenfield as the company’s president and CEO.

In May of 2013, Avid said that, as a result of its internal review, the company had determined that its financial statements from 2009 – 2011 are no longer reliable, and must be restated “because of errors in the application of US GAAP.”

At issue is the historic accounting treatment the company applied for certain software upgrades, dating back to 2009, which were made available to certain of its customers at no-charge. Avid management said in August 2013 that it has now determined that these upgrades should have been accounted for as “implied post-contract customer support” under US GAAP accounting rules.

The problem is that Avid has had a lot of transactions since 2009, and each one must be reviewed.

In January 2014, the company said it had made significant progress toward completion of the restatement, including evaluating transactions over an eight-and-a-half year period, encompassing a review of approximately 5 million transaction lines and 700 software releases.

Not only is this a time-consuming process, it’s also expensive. In January 2014, Avid said its cash expenditures in 2014 related to the ongoing accounting evaluation through completion of the evaluation will amount to approximately $25m to $34m.

On June 30, 2014 Avid’s cash and debt balances were $23m and $5m respectively, $48m no debt at on December 31, 2013.

Avid says it expects remaining payments related to the restatement as of July 1, 2014 to amount to approximately $12m to $14m.

Despite its well-publicized financial woes over the past few years, our market research during this same period shows that Avid continues to enjoy a strong brand reputation and customer loyalty, particularly among broadcasters and large media companies.

It’s also interesting to note that, while it may be a coincidence, the timing of Avid planned release of its historic financials more or less exactly coincides with the AvidConnect Europe event, and the 2014 IBC trade show in Amsterdam.

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Related Content:

Press Release: Avid Announces Timeline for Restatement

Avid to be Delisted from NASDAQ on February 25, 2014

Avid Receives Anticipated NASDAQ Delist Letter

New Avid Rights Agreement Will Cause “Substantial Dilution” to Potential Acquirers

Avid Unlikely to Regain Compliance with NASDAQ Listing Requirements by March 2014 Deadline

Avid Technology and Computershare Trust Company as Rights Agent, Rights Agreement Dated as of January 6, 2014

Avid Receives Additional Notice of Potential NASDAQ Delisting

Avid Delays Filing of Q2 2013 Financial Results and Form 10-Q

New Avid Bonus Plan Contemplates “Reorganization Event”

Avid Says its 2009 – 2011 Financial Statements No Longer Reliable

Avid Delays Release of Q4 and Full Year 2012 Results, Shares Fall

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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2014 Big Broadcast Survey (BBS) Reports Now Available

broadcast industry technology trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Jul 15 2014

After months of data collection, analysis, and visualization, we have now completed work on the 2014 Big Broadcast Survey (BBS). Reports from this study have now been published and are available from Devoncroft Partners.

If you’re not familiar with the BBS, it’s the most comprehensive annual study of technology end-users in the global broadcast industry. Nearly 10,000 broadcast professionals in 100+ countries participated in the 2014 BBS, making it once again the largest market study of the broadcast industry.

BBS reports have been designed to help readers improve their strategic decision-making, customer engagement, marketing strategy, product planning, and sales execution.  BBS reports are also used frequently for M&A-related activities by both buyers and sellers.

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Three types of 2014 BBS reports are available:

  • 2014 BBS Global Brand Reports:  provides deep insight into how each more than 100 broadcast technology suppliers (see full list below) are perceived by market participants, along with comprehensive benchmarking of broadcast technology vendors on a wide variety of metrics.

 

  • 2014 BBS Product Reports:  provide detailed information from buyers, specifiers, and users of broadcast technology products in 31 separate categories (see full list below)

 

  • 2014 BBS Global Market Report: provides detailed information about industry trends, major projects being planned, products being evaluated for purchase, current and future plant infrastructure, broadcast technology CapEx budgets, and planned deployment of new technologies including 4K, Connected TV, and Social TV.

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If you would like information about these reports and how they can help your business, please get in touch.

 

In addition to these paid-for reports, we will also be publishing highlights from the 2014 BBS on the Devoncroft website.  These articles will be posted on a semi-regular basis, so please check back often.

To receive posts when they are published, just enter your email in the box in the upper right-hand corner of the page.

 

The tables below show the product categories and broadcast technology vendor brands covered in the 2014 BBS.

 

 Product Categories Covered in the 2014 BBS:

2014 BBS -- Product Categories Covered in the 2014 Big Broadcast Survey

 

 

Broadcast Technology Brands Covered in the 2014 BBS:

 

2014 BBS -- All Brands included in 2014 BBS

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.© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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3rd Annual “Shifting Media Economics: Impact on Strategy, Finance, and Technology” Draws Huge Crowd at NAB 2014

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Apr 09 2014

This was the scene as we kicked off the third annual “Shifting Media Economics: Impact on Strategy, Finance, and Technology”  event at the NAB 2014 Show.

This half-day session was co-produced by Devoncroft Partners, Silverwood Partners, and the organizers of the 2014 NAB Show (to whom both Devoncroft and Silverwood are very grateful).

We had a standing-room only crowd from the moment the doors opened, and attendees were not disappointed by the outstanding information presented on the day.  The power of this unique event is that it brings together three ordinarily disparate groups — technology vendors, broadcasters, and financial firms — to discuss and debate important business issues facing the industry at a time of incredibly dynamic change.

 

SRO Crowd at NAB

 

We would especially like to thank our speakers and panelists for not only taking times out of their busy lives to prepare for and attend this event, but also (especially) for their thoughtful and often candid assessment of the state of the broadcast industry today, and what the future may bring.

In particular we would like to thank Vince Roberts,EVP Global Operations and Chief Technical Officer of Disney/ABC Television for his outstanding keynote address, which which provided a truly thought-provoking insight into the future of the media industry (and he’s funny too).

 

In case you missed this event, the full agenda  included:

 

Strategic Industry Analysis: Valuations, M&A, and Equity Financing

Presenters:

  • Jonathan Hodson-Walker: Managing Partner, Silverwood Partners
  • Joshua Stinehour: Managing Director, Silverwood Partners

 

 

The Broadcast & Media Technology Industry in 2014

Presenter:

  • Joe Zaller: President, Devoncroft Partners

 

 

Business Strategy Perspective From Industry Executives

Moderator:

  • Joe Zaller – President, Devoncroft Partners

 

Panelists:

  • Sam Blackman: CEO and Co-founder, Elemental Technologies
  • Louis Hernandez. Jr.: President and Chief Executive Officer, Avid
  • Joop Janssen: CEO, EVS
  • Michelle Munson: President, CEO and co-founder, Aspera, an IBM company

 

 

Keynote: Vince Roberts: CTO and EVP Global Operations, Disney/ABC Television Group

 

 

IABM Research Overview

Presenter:

  • Peter White: Chief Executive Officer, IABM

 

 

The Broadcast Buyer Perspective on Business Models, Trends, and Technology Advancement

 

Moderator:

Joe Zaller – President, Devoncroft Partners

 

Panelists:

  • Phil Braden: SVP Technology and Applications, PCCW Global
  • Del Parks: SVP Operations & Engineering, Sinclair Broadcast Group
  • Todd Daly: EVP Operations & Systems Engineering, Fox Broadcasting
  • Andy Tennant: Technology Director, Studios, ITV

 

 

Keynote: Vince Roberts: CTO and EVP Global Operations, Disney/ABC Television Group

 

Investor Perspectives on Industry

Moderator:

Jonathan Hodson-Walker: Managing Partner, Silverwood Partners

 

Panelists

  • Jeff Parks, Founding Partner, Riverwood Partners
  • Rohan Rai: Director, Wasserstein & Company
  • Sunit Mukherjee: Principal, Symphony Technology Group

 

 For those of many of you who asked for copies of presentations, please email info [at] devoncroft [dot] com and we will try to respond as soon as possible after the 2014 NAB Show.

 

Finally, thanks to all those who attended the event and sat in such a crowded room.

 

Based on the feedback we’ve received so far, there are two key takeaways from this event:

  • The content and substance of the event was terrific
  • You might want to consider a larger room next time

 

 

Were you there?  What did you think?  Please let us know.

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Want to Understand the Top Issues at NAB 2014? Don’t Miss “Shifting Media Economics: Impact on Strategy, Finance, and Technology”

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast technology vendor financials, Broadcast Vendor M&A, market research | Posted by Joe Zaller
Apr 05 2014

NAB 2014 Strategy-Session-Logos

 

If you are interested how the dramatic changes impacting the broadcast industry may shape its future, you won’t want to miss the third annual NAB Show event co-produced by Devoncroft, Silverwood Partners and the organizers of the NAB Show.

Now part of the NAB 2014 Broadcast Management Conference, this half-day session is called “Shifting Media Economics: Impact on Strategy, Finance, and Technology.”

It will be held in room N235 of the Las Vegas Convention Center on Sunday April 6th from 1:30 p.m. to 6:00 p.m.

Download the full agenda and speaker biographies here.

As always, this event features an intensive, information-packed series of presentations and panels that discuss the strategic trends and industry-specific factors influencing the value of media technology companies.

We’ve worked hard to put together an outstanding line-up of speakers and presenters, including top technology buyers, leading technology vendor CEOs, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

The agenda offers attendees the informed opinions of technology purchasers, industry executives, market research organizations, and financial professionals. The event will serve as a thought-provoking kick-off to the 2014 NAB Show.

Highlights will include panel discussions featuring leading vendor CEOs, senior executives from leading broadcasters, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

In addition, the audience will benefit from preliminary excerpts from the Devoncroft Big Broadcast Survey, the industry’s definitive demand-side market report, and the IABM DC Global Market Valuation Report, the industry’s definitive supply-side market report.

This session is intended for senior executives from technology vendors, end-users, and investment firms in the media technology sector.

Please click here for more information and/or to register.

 

 

Here’s the current agenda:

Shifting Media Economics: Impact on Strategy, Finance, and Technology

Sunday April 6, 2014

1:30 p.m. – 6:00 p.m.

Room N235 Las Vegas Convention Center

Part of the 2014 NAB Broadcast Management Conference

 

 

1:45 pm – 1:50 pm

WELCOME AND INTRODUCTION

Joe Zaller – President, Devoncroft Partners

 

 

1:50 pm – 2:15 pm

Strategic Industry Analysis: Valuations, M&A, and Equity Financing

Jonathan Hodson-Walker and Joshua Stinehour of Silverwood Partners will present an analysis of strategic industry trends and the specific factors that affect company valuations, including an updated perspective on transaction activity and valuations, vendor strategic considerations, and the current M&A environment along with near-term expectations.

 

Presenters:

  • Jonathan Hodson-Walker: Managing Partner, Silverwood Partners
  • Joshua Stinehour: Managing Director, Silverwood Partners

 

 

2:15 pm – 2:40 pm

The Broadcast & Media Technology Industry in 2014

Top broadcast analyst Joe Zaller will present a summary of key data derived from a variety of broadcast market intelligence projects including the newly published 2014 Big Broadcast Survey (BBS), the industry’s definitive demand-side market report. Discussion topics will include strategic drivers of broadcast technology spending, key customer investment areas, new technology deployment trends, and the most significant industry trends impacting end-user purchasing decisions.

 

Presenter:

  • Joe Zaller: President, Devoncroft Partners

 

 

2:40 pm – 3:15 pm

Business Strategy Perspective From Industry Executives

This panel of recognized executives at leading vendors will offer views on the critical drivers of company valuation in the industry, the best practices the panelist’s have learned on how to evaluate M&A opportunities, and the preferred approach for integrating M&A into overall growth strategies. The panelists will also consider the question of how broader technology trends are impacting the vendor community in the industry.

Moderator:

  • Joe Zaller – President, Devoncroft Partners

 

Panelists:

  • Sam Blackman: CEO and Co-founder, Elemental Technologies
  • Louis Hernandez. Jr.: President and Chief Executive Officer, Avid
  • Joop Janssen: CEO, EVS
  • Michelle Munson: President, CEO and co-founder, Aspera, an IBM company

 

 

3:35 pm – 3:50 pm

IABM Research Overview

Peter White, Chief Executive of the IABM (the trade group that represents suppliers of broadcast technology worldwide), will present an overview of the latest end-user research from the IABM along with selected excerpts from the recently completed IABM DC Global Market Valuation Report, the industry’s definitive supply-side market report.

Presenter:

  • Peter White: Chief Executive Officer, IABM

 

 

3:50 pm – 4:20 pm

The Broadcast Buyer Perspective on Business Models, Trends, and Technology Advancement

A panel of technology decision makers at leading broadcasters will offer informed perspectives on the most significant industry trends affecting technology budgets and the technology purchase decision. The audience will benefit from an emphasis on the business implications of technology decisions to broadcasters.

 

Moderator:

Joe Zaller – President, Devoncroft Partners

 

Panelists:

  • Phil Braden: SVP Technology and Applications, PCCW Global
  • Del Parks: SVP Operations & Engineering, Sinclair Broadcast Group
  • Todd Daly: EVP Operations & Systems Engineering, Fox Broadcasting
  • Andy Tennant: Technology Director, Studios, ITV

 

 

4:20 pm – 4:45 pm

Keynote: Vince Roberts: CTO and EVP Global Operations, Disney/ABC Television Group

ABC/Disney EVP and CTO Vince Roberts will highlight the major business model challenges facing the industry and the implications to technology development. Mr. Roberts will focus on the actual commercial factors driving technology deployments today, and what can reasonably be expected in the near future. Referencing initiatives at Disney relating to topics such as IP-based infrastructure and the Cloud, the audience will gain an improved understanding of how changes in media consumption and fundamental technology transitions, ultimately affect technology vendors.

 

 

4:45 pm – 5:15 pm

Investor Perspectives on Industry

This panel of leading investment professionals in the media and entertainment sector will offer the audience the institutional investor’s perspective on the industry. The discussion will include the panelist’s intelligence-gathering plans for the NAB Show, views on the trends that are driving investment dollars in the sector, and a review of the characteristics influencing the evaluation of an investment opportunity.

Moderator:

Jonathan Hodson-Walker: Managing Partner, Silverwood Partners

 

Panelists

  • Jeff Parks, Founding Partner, Riverwood Partners
  • Rohan Rai: Director, Wasserstein & Company
  • Sunit Mukherjee: Principal, Symphony Technology Group

 

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Related Content:

2014 NAB Show Session Details – Shifting Media Economics: Impact on Strategy, Finance, and Technology

Download the full agenda and speaker biographies here

Save the Date: Third Annual Media Technology Strategy Conference at the NAB 2014 Show

 

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© Devoncroft Partners 2009 – 2014 All Rights Reserved.

 

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Speakers Announced for Third Annual NAB Show Event — Shifting Media Economics: Impact on Strategy, Finance, and Technology

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast technology vendor financials, Broadcast Vendor M&A, market research | Posted by Joe Zaller
Mar 26 2014

If you are interested how the dramatic changes impacting the broadcast industry may shape its future, you won’t want to miss the third annual NAB Show event co-produced by Devoncroft, Silverwood Partners and the organizers of the NAB Show.

Now part of the NAB 2014 Broadcast Management Conference, this half-day session is called “Shifting Media Economics: Impact on Strategy, Finance, and Technology.” It will be held in room N235 of the Las Vegas Convention Center on Sunday April 6th from 1:30 p.m. to 6:00 p.m.

It will be held in room N235 of the Las Vegas Convention Center on Sunday April 6th from 1:30 p.m. to 6:00 p.m.

As always, this event features an intensive, information-packed series of presentations and panels that discuss the strategic trends and industry-specific factors influencing the value of media technology companies.

We’ve worked hard to put together an outstanding line-up of speakers and presenters, including top technology buyers, leading technology vendor CEOs, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

The agenda offers attendees the informed opinions of technology purchasers, industry executives, market research organizations, and financial professionals. The event will serve as a thought-provoking kick-off to the 2014 NAB Show.

Highlights will include panel discussions featuring leading vendor CEOs, senior executives from leading broadcasters, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

In addition, the audience will benefit from preliminary excerpts from the Devoncroft Big Broadcast Survey, the industry’s definitive demand-side market report, and the IABM DC Global Market Valuation Report, the industry’s definitive supply-side market report.

This session is intended for senior executives from technology vendors, end-users, and investment firms in the media technology sector.

Please click here for more information and/or to register.

 

Here’s the current agenda:

 

Shifting Media Economics: Impact on Strategy, Finance, and Technology

Sunday April 6, 2014

1:30 p.m. – 6:00 p.m.

Room N235 Las Vegas Convention Center

Part of the 2014 NAB Broadcast Management Conference

 

 

1:45 pm – 1:50 pm

WELCOME AND INTRODUCTION

Joe Zaller – President, Devoncroft Partners

 

 

1:50 pm – 2:15 pm

Strategic Industry Analysis: Valuations, M&A, and Equity Financing

Jonathan Hodson-Walker and Joshua Stinehour of Silverwood Partners will present an analysis of strategic industry trends and the specific factors that affect company valuations, including an updated perspective on transaction activity and valuations, vendor strategic considerations, and the current M&A environment along with near-term expectations.

 

Presenters:

  • Jonathan Hodson-Walker: Managing Partner, Silverwood Partners
  • Joshua Stinehour: Managing Director, Silverwood Partners

 

 

2:15 pm – 2:40 pm

The Broadcast & Media Technology Industry in 2014

Top broadcast analyst Joe Zaller will present a summary of key data derived from a variety of broadcast market intelligence projects including the newly published 2014 Big Broadcast Survey (BBS), the industry’s definitive demand-side market report. Discussion topics will include strategic drivers of broadcast technology spending, key customer investment areas, new technology deployment trends, and the most significant industry trends impacting end-user purchasing decisions.

 

Presenters:

  • Joe Zaller: President, Devoncroft Partners

 

 

2:40 pm – 3:15 pm

Business Strategy Perspective From Industry Executives

This panel of recognized executives at leading vendors will offer views on the critical drivers of company valuation in the industry, the best practices the panelist’s have learned on how to evaluate M&A opportunities, and the preferred approach for integrating M&A into overall growth strategies. The panelists will also consider the question of how broader technology trends are impacting the vendor community in the industry.

Moderator:

  • Joe Zaller – President, Devoncroft Partners

 

Panelists

  • Sam Blackman: CEO and Co-founder, Elemental Technologies
  • Louis Hernandez. Jr.: President and Chief Executive Officer, Avid
  • Joop Janssen: CEO, EVS
  • Michelle Munson: President, CEO and co-founder, Aspera, an IBM company

 

 

3:35 pm – 3:50 pm

IABM Research Overview

Peter White, Chief Executive of the IABM (the trade group that represents suppliers of broadcast technology worldwide), will present an overview of the latest end-user research from the IABM along with selected excerpts from the recently completed IABM DC Global Market Valuation Report, the industry’s definitive supply-side market report.

Presenter

  • Peter White: Chief Executive Officer, IABM

 

 

3:50 pm – 4:20 pm

The Broadcast Buyer Perspective on Business Models, Trends, and Technology Advancement

A panel of technology decision makers at leading broadcasters will offer informed perspectives on the most significant industry trends affecting technology budgets and the technology purchase decision. The audience will benefit from an emphasis on the business implications of technology decisions to broadcasters.

 

Moderator:

Joe Zaller – President, Devoncroft Partners

 

Panelists

  • Phil Braden: SVP Technology and Applications, PCCW Global
  • Del Parks: SVP Operations & Engineering, Sinclair Broadcast Group
  • Todd Daly: EVP Operations & Systems Engineering, Fox Broadcasting
  • Andy Tennant: Technology Director, Studios, ITV

 

 

4:20 pm – 4:45 pm

Keynote: Business Model Changes Technology Changes

ABC/Disney EVP and CTO Vince Roberts will highlight the major business model challenges facing the industry and the implications to technology development. Mr. Roberts will focus on the actual commercial factors driving technology deployments today, and what can reasonably be expected in the near future. Referencing initiatives at Disney relating to topics such as IP-based infrastructure and the Cloud, the audience will gain an improved understanding of how changes in media consumption and fundamental technology transitions, ultimately affect technology vendors.

Presenter:

Vince Roberts: CTO and EVP Global Operations, Disney/ABC Television Group

 

 

4:45 pm – 5:15 pm

Investor Perspectives on Industry

This panel of leading investment professionals in the media and entertainment sector will offer the audience the institutional investor’s perspective on the industry. The discussion will include the panelist’s intelligence-gathering plans for the NAB Show, views on the trends that are driving investment dollars in the sector, and a review of the characteristics influencing the evaluation of an investment opportunity.

Moderator:

Jonathan Hodson-Walker: Managing Partner, Silverwood Partners

 

Panelists

  • Marshall Haines: Managing Director, Symphony Technology Group
  • Jeff Parks, Founding Partner, Riverwood Partners
  • Rohan Rai: Director, Wasserstein & Company

 

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Related Content:

2014 NAB Show Session Details – Shifting Media Economics: Impact on Strategy, Finance, and Technology

Save the Date: Third Annual Media Technology Strategy Conference at the NAB 2014 Show

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© Devoncroft Partners 2009 – 2014 All Rights Reserved.

 

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Broadcast Vendor M&A: Ross Video Expands News Tech Line-Up with Acquisition of ADS

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Mar 10 2014

Ross Video announced that it has acquired Automated Data Systems (ADS), a provider of newsroom computer systems (NCRS) and broadcast prompters based in La Crosse, Wisconsin.  Terms were not disclosed.

Ross Video is buying ADS for its EZNews product line, a newsroom editorial system used by small call-letter TV stations, educational institutions, and government agencies.

As such the EZNews platform is a potentially a nice bolt-on acquisition for Ross Video, which surprised the industry with the introduction of an NCRS product called Inception at IBC 2013.

As with its previous acquisitions, Ross Video appears to be leaving the existing team in place, and enhancing the product development capability of the acquired company. Bill Sacia, former President of EZNews, has already changed his profile on LinkedIn, and now describes his job as ‘”leading the transition for EZNews clients to the new evolving, feature – function merging, more powerful Ross Inception Newsroom System.”

David Ross, CEO and majority shareholder of the eponymous broadcast technology vendor, told me that the company plans to incorporate the EZNews team into the company’s Inception NCRS development team.  “EZNews is the biggest of the small players in the NCRS market,” said Ross.  “We like the people and we really liked the ideas they’ve developed for smaller stations, and we plan to add these to our Inception product line.”

More importantly for Ross Video, EZNews has approximately 200 customer installations that can eventually be converted to the Ross Inception platform.  “200 customers is significant,” said Ross.  “It took Ross Video a long time to get that many customers for OverDrive” [the RossVideo production automation system].

Although Ross says the company put in place a full data migration plan for porting all EZNews technology and features over to its Inception platform, he does not seem to be in a hurry to do so. “We will continue to support EZNews customers and things will remain business as usual for them.”

One reason for this is that the primary customers for the EZNews system are colleges and universities who typically have smaller budgets than the TV station market where Inception is aimed.  Because EZNews has educational discounts built directly into its pricing, it tends to sell for significantly less than a typical broadcast NCRS system.

However, because these users are training the next generation of broadcast journalists, Ross sees them “as a very important long term customer base for Ross Video.” Therefore, Ross says he also has a plan to make it easy and cost-effective for EZNews customers who want to switch to the Inception platform.

“For the next year, all existing EZNews customers can upgrade, at cost, to (the more fully-featured) Inception platform. They’ll end up getting everything in EZNews and everything in Inception.  It’s really a great deal,” added Ross.

Ross will also continue to provide support for another ADS product, a popular, low cost windows based teleprompting software system called EZPrompt, which has more than 6,000 customers.

Including ADS, Ross Video has acquired eight companies in the past four years:

Most recently, Ross bought mobile video provider MCP, and announced its intention to create a national sports production company through the introduction of what it calls “openTruck” to Break Open Sports Production Market.

 

Previous Ross Video M&A deals include:

 

  • Montalto: Routing switcher research and development team

 

  • Cambotics: robotic camera heads and pedestals (2012)

 

  • Fx-Motion: “Furio” robotic camera systems (2012)

 

  • Norpak: data insertion and Nielsen products (2011)

 

  • Codan Broadcast: NK Series routing switchers (2010)

 

  • Media Refinery: XPression broadcast graphics (2010)

 

The ADS purchase is a classic Ross Video move.  The company has strategically used M&A to expand its product portfolio and increase its solution footprint in the broadcast market.

The strategy appears to be working.

Although Ross Video is a private company, the CEO occasionally uses social media to provide some metrics about its performance.  In November 2013 Ross said his company’s sales have increased for 22 straight years after achieving 8% revenue growth in fiscal 2013 versus the previous year.

In previous postings, Ross said the company’s year-over-year revenue growth in 2011 and 2012 was 47% and 17%, respectively.

According to my conversation with David Ross, the strategy also seems to be working for the acquired companies. “We’ve bought a lot of really cool companies, integrated them into Ross Video, and within a few years we’ve managed to increase their revenue by 5-10x.”

Given this track record, and the company’s family ownership, Ross can afford to be choosey when it comes to acquisitions.   And these days there seems to be a lot more to choose from.  Ross says he averages 1-2 inbound calls per week from executives who want to sell him their companies.

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It remains to be seen how well Ross Video fares in the NCRS business with Inception and EZNews.

For many years, the NCRS market seemed like a two-horse race between ENPS from the Associated Press and iNews from Avid.  Although neither AP nor Avid break-out revenue from their news products, the two companies are widely believed to have the lion’s share of category revenue between them.

However, it seems this market has been heating up as of late.  The IBC 2013 launch of Inception by Ross Video was one of several interesting developments in this area.

Other NCRS contenders include France-based Dalet Digital Media Systems. In the fourth quarter of 2013 Dalet’s revenue from TV newsroom systems was $17.9m (€12.9m), up 48.3% versus the previous year, and represented 35.1% of the company’s total revenue in the quarter.

Other vendors including Bitcentral and Masstech have also made inroads into the news technology market.

Nevertheless, David Ross remains very confident about his company’s prospects, saying the ADS acquisition “is a great step for Ross Video.  We look forward to the opportunity to grow even more into the newsroom market.”

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Related Content:

Press release: Ross Video Acquires Automated Data Systems (ADS)

Why Ross Video Bought MCP – Will Introduce “openTruck” to Break Open Sports Production Market

Broadcast Vendor M&A: Ross Video Buys Mobile Production Firm, Intends to Create National Sports Production 

Broadcast Vendor M&A: Ross Video Bolsters Routing Line with Sixth Acquisition in Past Four Years

Dalet Revenue Grows 7 Percent in 2013 on Strong Sales of Newsroom Solutions

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Avid to be Delisted from NASDAQ on February 25, 2014

Broadcast technology vendor financials, Quarterly Results, SEC Filings | Posted by Joe Zaller
Feb 24 2014

Avid said in a regulatory filing that, as expected, the company has received a notification letter from NASDAQ indicating that the NASDAQ Listing Qualifications Hearings Panel has determined to delist Avid’s shares from The NASDAQ Stock Market.

This follows on from the company’s announcement in January 2014 that it was unlikely to regain compliance with its SEC filing requirements for continued listing of its common stock on the NASDAQ Stock Market by the previously reported March 14, 2014 deadline set by the NASDAQ Hearings Panel.

As a result, Avid will cease trading on the NASDAQ effective at the open of business on Tuesday, February 25, 2014.

It should be noted that Avid’s delisting by NASDAQ has nothing to do with the company’s current performance.

At issue is the historic accounting treatment the company applied for certain software upgrades, dating back to 2009, which were made available to certain of its customers at no-charge. Avid management said in August 2013 that it has now determined that these upgrades should have been accounted for as “implied post-contract customer support” under US GAAP accounting rules.

Because of this, the company has not filed financial results, made required regulatory filings (e.g. annual 10-K report), or held an annual meeting of shareholders, as required by the listing rules of the NASDAQ market.

To rectify this situation, Avid has, since February 2013, been conducting an internal forensic investigation into the way it historically accounted for these updates. Last year, the company said that, as a result of this review, it had determined that its financial statements from 2009 – 2011 are no longer reliable, and must be restated “because of errors in the application of US GAAP.”

The problem is that Avid has had a lot of transactions over the years, and each one must be reviewed. Last month, the company said it had made significant progress toward completion of the restatement, including evaluating transactions over an eight-and-a-half year period, encompassing a review of approximately 5 million transaction lines and 700 software releases.

Not only is this a time-consuming process, it’s also expensive. Last month, Avid said its cash expenditures in 2014 related to the ongoing accounting evaluation through completion of the evaluation will amount to approximately $25 million to $34 million.

When this process has been completed, Avid will restate its financial results the fiscal years ended December 31, 2011, 2010 and 2009 and for the quarterly periods ended March 31, 2012 and 2011, June 30, 2012 and 2011, and September 30, 2012 and 2011.

Avid says it intends to complete the restatement and regain compliance with its SEC filing requirements as soon as practical, and is targeting is “targeting mid 2014 for completion of the restatement.”

The company said that as soon as its accounting investigation has been completed and the restatement of its financials has been completed, that intends to “apply for prompt relisting on the NASDAQ Stock Market as early as possible after regaining compliance with the listing requirements.”

In the meanwhile, following its suspension from NASDAQ on February 25, 2014, Avid’s common stock will begin trading on the OTC Markets – OTC Pink Tier under the trading symbol AVID.

Last month, Avid appointed Deloitte & Touche LLP as its new auditor firm to succeed Ernst & Young LLP. According to the company “the decision to change auditors was not the result of any disagreement between the Company and Ernst & Young LLP on any matter of accounting principle or practice, financial statement disclosures, or auditing scope or procedure.”

Avid’s cash balance on December 31, 2013 was approximately $48 million and it had no debt or draw on the available line of credit with Wells Fargo.

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Related Content:

Avid Receives Anticipated NASDAQ Delist Letter

New Avid Rights Agreement Will Cause “Substantial Dilution” to Potential Acquirers

Avid Unlikely to Regain Compliance with NASDAQ Listing Requirements by March 2014 Deadline

Avid Technology and Computershare Trust Company as Rights Agent, Rights Agreement Dated as of January 6, 2014

Avid Receives Additional Notice of Potential NASDAQ Delisting

Avid Delays Filing of Q2 2013 Financial Results and Form 10-Q

New Avid Bonus Plan Contemplates “Reorganization Event”

Avid Says its 2009 – 2011 Financial Statements No Longer Reliable

Avid Delays Release of Q4 and Full Year 2012 Results, Shares Fall

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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New Avid Rights Agreement Will Cause “Substantial Dilution” to Potential Acquirers

Broadcast technology vendor financials | Posted by Joe Zaller
Jan 09 2014

Avid Technology said it has entered into a Rites Agreement with Computershare Trust Company acting as Rights Agent. In connection with this, Avid will distribute a dividend of one Right for each outstanding share of its common stock to stockholders of record at the close of business on January 17, 2014.

Each Right entitles the registered holder to purchase from Avid a unit consisting of one ten-thousandth of a share “Series A Preferred Stock” at an exercise price of $40 per Unit, subject to adjustment.

The Rights will initially be attached to all common stock of the company, and will separate when any person or entity accumulates more than 15% of the Avid’s common stock. If/when this occurs, each holder of a Right will thereafter have the right to receive Avid common stock worth two times the exercise price of the Right.

For example, at an exercise price of $40 per Right, each Right not owned by an acquiring person (or by certain related parties) would entitle its holder to purchase $80 worth of Common Stock (or other consideration) for $40.

Avid says “the Rights will not prevent a takeover of the Company. However, the Rights may cause substantial dilution to a person or group that acquires 15% or more of the Common Stock unless the Rights are first redeemed by the Board of Directors of the Company. Nevertheless, the Rights should not interfere with a transaction that is in the best interests of the Company and its stockholders because the Rights can be redeemed on or prior to the close of business on the tenth business day following the Stock Acquisition Date, as defined in the Rights Agreement, before the consummation of such transaction.”

As of January 2, 2014, there were 42,339,117 shares of Common Stock issued (of which 39,081,641 shares were outstanding and 3,257,476 shares were held in treasury) and 3,775,132 shares reserved for issuance pursuant to employee benefit plans. As long as the Rights are attached to the Common Stock, the Company will issue one Right with each new share of Common Stock so that all such shares will have Rights attached.

 

For those who enjoy reading complex financial documents, the entire Rights Agreement can be found here.

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Related Content:

Avid Unlikely to Regain Compliance with NASDAQ Listing Requirements by March 2014 Deadline

Avid Technology and Computershare Trust Company as Rights Agent, Rights Agreement Dated as of January 6, 2014

Avid Receives Additional Notice of Potential NASDAQ Delisting

Avid Delays Filing of Q2 2013 Financial Results and Form 10-Q

New Avid Bonus Plan Contemplates “Reorganization Event”

Avid Says its 2009 – 2011 Financial Statements No Longer Reliable

Avid Delays Release of Q4 and Full Year 2012 Results, Shares Fall

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Avid Unlikely to Regain Compliance with NASDAQ Listing Requirements by March 2014 Deadline

Broadcast technology vendor financials | Posted by Joe Zaller
Jan 08 2014

Avid Technology said it is unlikely that the company will be able to regain compliance with its SEC filing requirements for continued listing of its common stock on the NASDAQ Stock Market by the March 14, 2014 deadline set by the NASDAQ Listing Qualifications Panel.

Avid has been conducting an internal investigation into its current and historical accounting treatment related to software updates since February 2013.

Last year, the company said that, as a result of this review, it had determined that its financial statements from 2009 – 2011 are no longer reliable, and must be restated “because of errors in the application of US GAAP.”

Avid now says that, given the scope of the review, it will be unlikely to achieve these objectives prior to the March 14, 2014 deadline.

The company says it has made significant progress toward completion of the restatement, including evaluating transactions over an eight-and-a-half year period, encompassing a review of approximately 5 million transaction lines and 700 software releases.

“Since I assumed the Chief Financial Officer role in April 2013, the team, with the assistance of numerous outside resources, has made significant progress in our efforts to become current with our filings,” said John Frederick, Chief Financial Officer, Avid. “While the scope of the project is more involved than the Company first expected, I believe that we have comprehensively assessed the revenue restatement and have a clear view to complete that work. We look forward to working with our new audit team to deliver the audited financial statements to be included in our next annual report on Form 10-K, which will reflect the effects of the previously announced restatement, as expeditiously as possible. We do not, however, believe we will be able to achieve the March 14, 2014 deadline established by NASDAQ. In the near future, Louis Hernandez Jr., our Chief Executive Officer and I plan to update the investor community on our strategic direction and business and once we are current with our filings, we look forward to providing further details on this as well as our financial performance.”

As a result of this updated timing, the Company’s shares of common stock may be suspended from trading and delisted from the NASDAQ Stock Market.

Following a possible suspension of trading in Avid’s common stock on NASDAQ, the company expects that its shares would trade on the OTC Markets while it works to finalize the restatement.

Avid says it intends to complete the restatement and regain compliance with its SEC filing requirements as soon as practicable, and if its shares do become delisted, it will “apply for prompt relisting on the NASDAQ Stock Market so that it can trade on that market as early as possible after regaining compliance with the listing requirements.”

As a result of the ongoing restatement, Avid did not hold an annual meeting of shareholders during the year ended December 31, 2013 and, on January 3, 2014, the company received a letter from the Listing Qualifications Staff of NASDAQ indicating that the Avid’s failure to hold an annual meeting of shareholders and to solicit proxies by December 31, 2013 as required by NASDAQ Listing Rules 5620(a) and 5620(b), may serve as an additional basis for delisting the Company’s common stock from NASDAQ .

Avid has been provided with the opportunity to present its plan to evidence compliance with those requirements for the NASDAQ Listing Qualifications Panel’s review. The company says it intends to hold an annual meeting of shareholders promptly after it has completed the restatement and regained compliance with its SEC filing requirements.

Avid’s cash balance on December 31, 2013 was approximately $48 million and it had no debt or draw on the available line of credit with Wells Fargo. The company expects that cash expenditures in 2014 related to the ongoing accounting evaluation through completion of the evaluation will amount to approximately $25 million to $34 million.

Avid also said it has appointed Deloitte & Touche LLP as its new auditor firm to succeed Ernst & Young LLP. According to the company “the decision to change auditors was not the result of any disagreement between the Company and Ernst & Young LLP on any matter of accounting principle or practice, financial statement disclosures, or auditing scope or procedure.”

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Related Content:

Press Release: Avid Announces Appointment of Deloitte & Touche as New Audit Firm

Avid Receives Additional Notice of Potential NASDAQ Delisting

Avid Delays Filing of Q2 2013 Financial Results and Form 10-Q

New Avid Bonus Plan Contemplates “Reorganization Event”

Avid Says its 2009 – 2011 Financial Statements No Longer Reliable

Avid Delays Release of Q4 and Full Year 2012 Results, Shares Fall

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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