Posts Tagged ‘Avid’

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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Avid Receives Additional Notice of Potential NASDAQ Delisting

Broadcast technology vendor financials, Quarterly Results, SEC Filings | Posted by Joe Zaller
Aug 19 2013

Avid announced that it has received an additional notification from the NASDAQ Listing Qualifications Department that the company remains non-compliant with NASDAQ Listing Rule 5250(c)(1) due to the delay in filing its Form 10-Q for the quarter ended June 30, 2013.

Failure to regain compliance with Listing Rule 5250(c)(1) could serve as a basis for the delisting of the Avid’s stock from the NASDAQ Global Select Market.

Avid said it anticipated the receipt of the letter, and that the notification has no immediate effect on the listing of Avid’s common stock on the NASDAQ Global Select Market.

The NASDAQ notification requires Avid to submit an update to its original plan to regain compliance with NASDAQ’s filing requirements for continued listing by August 21, 2013.

Avid says it intends to submit such an update to its original plan by the required date.

If NASDAQ accepts Avid’s plan, the company could be given until September 16, 2013, to regain compliance.

If NASDAQ does not accept Avid’s plan, Avid will have the opportunity to appeal that decision to a NASDAQ Hearings Panel.

The latest notification stems from Avid’s previously announced internal audit of the way it historically accounted for certain software upgrades delivered to certain customers.  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

As a result of the ongoing audit, Avid is currently unable to file its annual report on Form 10-K for the year ended December 31, 2012 and quarterly reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013.

Avid says it is working diligently to complete the accounting evaluation, the restatements and the filings as soon as possible.

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Related Content:

Avid 8-K Filing: Receipt of Anticipated NASDAQ Letter

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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

Broadcast technology vendor financials, Quarterly Results, SEC Filings | Posted by Joe Zaller
Aug 13 2013

Avid said that due to an ongoing internal audit of past treatment of software upgrades, it “is not able to complete and cannot file its quarterly report on Form 10-Q for the quarter ended June 30, 2013 by the prescribed due date or by August 14, 2013.” The disclosure was made in a regulatory filing with the SEC. The company has also delayed the filing of its Q2 2013 earnings.

The focus of Avid’s internal audit is the past accounting treatment of certain software upgrades that the company previously made available to certain of its customers at no-charge. Avid management has now determined that these upgrades should have been accounted for as “implied post-contract customer support” under US GAAP accounting rules.

As a result, Avid is currently in the process of restating its financial statements for the fiscal years ended December 31, 2011, 2010 and 2009 and for its quarterly periods ended September 30, 2012 and 2011, June 30, 2012 and 2011, and March 31, 2012 and 2011.

Because the work required to review and restate historical transactions has not yet been completed, the company says it is not in a position at this time to compare results of operations for the quarters ended June 30, 2012 and 2013 respectively, resulting in the delayed filing of its 10-Q for the second quarter of 2013.

It’s worth noting that the work being done by the company is an internal accounting review that focuses on the timing of revenue recognition, not the validity or overall amount of revenue received.

Avid says that although the restatement adjustments will impact previously reported revenue and operating results for prior periods, they are “not expected to affect the amount of total revenue ultimately to be earned, or the amount or timing of cash received or to be received, from the sales transactions or the company’s liquidity or cash flow for any prior period.”

After reviewing current and previous regulatory filings, it appears that the crux of the matter is that in past periods Avid recognized the revenue received for the software upgrades in question at the time the upgrade was performed, rather than over the “implied post-contract customer support period” specified in GAAP accounting rules.

Given the fact that Avid is presumably be going back over every single transaction for the three-year period from 2009 to 2011, this process is going to take some time.

Indeed, the audit has been ongoing for many months and has already resulted in the delayed filing of Avid’s Q4 2012 results, 2012 10-K filing, and Q1 2013 results.  In May 2013, the company received notice of potential delisting from the NASDAQ stock market for failure to submit its 10-K filing for 2012.

Avid has not disclosed the value of the software upgrades in question. It also says that at this time it “cannot estimate the full impact of the adjustments of revenue and costs, and the related impact on income taxes, on any previously issued financial statements for any individual reporting period, although it may be significant.”  Avid also said that “the timing of recognition of certain costs related to these customer arrangements may also be impacted, along with the timing of related income taxes.”

Avid has not disclosed how much it has spent on the ongoing audit. However, in July 2013, the company said in a filing that “expects that additional cash expenditures related to the ongoing accounting evaluation through the fiscal year ending December 31, 2013 will amount to approximately $11 million to $14 million.”  This includes up to $1.7 million for a potential Remediation Bonus that will be paid once the company has filed its 2012 Form 10-K with securities regulators.

During this process, Avid has made significant changes to its finance team during the past six months.  In July 2012 the company said that Karl Johnsen, the company’s chief accounting officer & controller has left the company. In April 2013 Avid announced that John Frederick, who joined the company in February 2013 as Chief of Staff became CFO, replacing Ken Sexton, who has been Avid’s CFO since 2008 under previous CEO Gary Greenfield. Prior to joining Avid, Frederick was the Corporate EVP and CFO at Open Solutions, where he served under current Avid CEO Louis Hernandez.

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Related Content:

Avid for NT 10-Q: Notice of Delayed Filing of Form 10-Q for the Period Ended June 30, 2013

New Avid Bonus Plan Contemplates “Reorganization Event”

Avid 8-K July 25 2013 — VP Finance Transition and Remediation Bonus

Avid 2013 Remediation Bonus Plan

Amended and Restated 2005 Stock Incentive Plan

Avid Replaces Chief Accounting Officer

Avid Replaces Chief Financial Officer

Avid Says its 2009 – 2011 Financial Statements No Longer Reliable

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

Avid Receives Notice of Potential Delisting From NASDAQ for Failure to Submit 10-K Filing

Greenfield Resigns from Avid Board of Directors

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Ranking Broadcast Technology Vendors Part 3 — The 2013 BBS Global Brand Opinion Leaders League Table

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Aug 12 2013

This is the seventh in a series of articles about some of the findings from Devoncroft’s 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

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This is the third post in a series of articles about how broadcast technology vendors were ranked and benchmarked on a variety of metrics by the respondents to the 2013 BBS.

The first two posts in this series described the 2013 BBS Overall Brand Opinion League Table, and the 2013 BBS Net Change in Overall Brand Opinion League Table.

These rankings show how the global sample of 2013 BBS respondents rated a variety of broadcast technology vendor brands in terms of their overall opinion of these vendors, and also how their opinions have changed over time.

A large number of brands were listed in the two previous ranking lists. Between these two sets of league tables, a total of 70 broadcast technology vendor brands were listed (out of a total of 151 brands included in the 2013 BBS (the complete list of brands included in the 2013 BBS can be found here).

There were 46 vendors in the in the 2013 BBS Overall Brand Opinion League Table (versus 48 in 2012), and 53 vendors in the 2013 BBS Net Change in Overall Brand Opinion League Table (versus 58 in 2012).

However, the brands in the Overall Opinion and Net Change of Opinion rankings were not always the same.  In fact, out of the 70 broadcast technology vendor brands that were listed in the previous two rankings, just 29 brands were listed in both sets of rankings, either globally or regionally.

We’ve called this list of the 29 brands listed in both the 2013 BBS Overall Opinion and Net Change of Opinion rankings the 2013 BBS Brand Opinion Leaders League Table. 

These vendors, shown below, are held in high regard today by broadcast technology buyers, and are also perceived to be getting better over time.

Please note that both audio and video brands are included in these rankings, and that the table below shown brands in alphabetical order, NOT in the order in which they were ranked in the study. 

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2013 BBS -- Brand Opinion Leaders League Table

 

 

There are a wide variety of companies on this list, including large and small firms; single product and multi-product firms; global and regional players; and audio and video technology providers.

What they have in common is strong brand recognition, and a dynamism that 2013 BBS respondents feel is making them even stronger.

 

Year-over-year changes to these rankings:

Twenty-two in the 2013 BBS Brand Opinion Leaders League Table were listed in the 2012 version of these rankings:

Adobe, Aja Video, Autodesk, Avid, Blackmagic Design, Canon, Cisco, Dolby, Evertz, EVS, Lawo, Neumann, Panasonic, Riedel, Rohde & Schwarz, RTW, Sennheiser, Shure, Snell, Sony, Tektronix, Yamaha

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The following seven companies in the 2013 BBS Brand Opinion Leaders League Table were not included in this ranking in in 2012

Adam, Angenieux, Fujinon, Solid State Logic, Soundcraft, Studer,  Wheatstone

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The following eight companies that were listed in the 2012 BBS Brand Opinion Leaders League Table are not included in the 2013 ranking:

Apple, Clear-Com, Genelec, Harmonic, Harris, Omneon, Schoeps, Wohler

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Brand Opinion Leaders by Product Categories

As shown in the chart below, the companies in the 2013 BBS Brand Opinion Leaders League Table make products in 23 of the 30 categories that we covered in the 2013 BBS, down from 25 product categories in 2012.

The top products for brand leaders are Audio Mixing Cosoles, Microphones, Audio Processing  and Monitoring, Graphics & Branding, Production Switchers, Signal Processing / Interfacing / Modular, and Video Editing.

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2013 BBS -- Brand Opinion Leaders -- Frequency Analysis of Product Categories

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The chart above has a good mix of audio and video products, as well as a mix of hardware and software products.

However, it is interesting to note that many of the most frequently cited product categories are audio-related.  Some vendors on this list, such as Adobe, Avid, Riedel, and Sony, are listed in both audio and video product categories in the 2013 BBS.  Other vendors are listed in only audio categories.  These include Adam, Dolby, Lawo, Neumann, RTW, Sennheiser, Shure, Solid State Logic, Soundcraft, Studer, Wheatstone, and Yamaha.

It is also useful to look at the number of product categories provided by each vendor in the Global Brand Opinion Leader League Table.  After all, larger companies often make more products and are consequently used in more places than their smaller counterparts.

The table below shows the number of product categories that each brand in this ranking produces (as defined by the segmentation used in the 2013 BBS).

 

2013 BBS -- Brand Opinion Leaders -- Frequency Analysis

 

 

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While there are several brands on this list that appear in many product categories, the vast majority produce only one or two types of products.  Indeed out of the thirty brands in this table, sixteen brands  appear only once.

Keep in mind that companies who produce only one type of product are not necessarily small.  There are some very large companies on the list above who appear in just one 201 BBS category.

It turns out that to fully understand what drives brand opinion and brand leadership, one needs to look at the factors that drive and influence these perceptions.  This includes the company’s reputation for things like innovation, reliability, quality, value and great customer service.

These metrics will be covered in future posts.

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Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

Broadcast Technology Products Being Evaluated for Purchase in 2013 – 2014

Devoncroft Partners: 2013 Broadcast Industry Market Research Findings

Ranking Broadcast Technology Vendors Part 1 – The 2013 BBS Overall Brand Opinion League Table

Ranking Broadcast Technology Vendors Part 2 – The 2013 BBS Net Change of Overall Brand Opinion League Table

Previous Year: The 2012 BBS Global Brand Opinion Leaders League Table

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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