Movie and music makers are keen on Avid Technology. The company provides digital media recording and editing software and hardware. Products include its Media Composer video editing systems and its ProTools professional audio recording and editing systems, and are used by music and film studios, postproduction facilities, radio broadcasters, and TV stations, as well as independent professionals, amateurs, and consumers. Avid also makes newsroom automation systems, digital storage systems, and music notation and education software. Its M-Audio brand makes audio recording and performance products. With sales offices in 20 countries, about 60% of revenue comes from outside the US.
After hitting about $930 million in sales in 2007 (more than double from 2002), revenue has since dropped to less than $700 million, with annual losses beginning to appear in 2006. Revenue was essentially flat for 2011, with a service revenue increase of 11% being rebuffed by a more than 2% decrease in product sales. Avid may still be in the red, but its restructuring efforts seem to be having an impact, as losses have dwindled from $200 million in 2008 to less than $25 million in 2011.
With more than a dozen Emmy awards, two "Oscar" Academy Awards, and a Grammy, Avid continues to transform itself under the corporate strategy initiated in 2008. Ongoing operational improvements include creating an integrated planning process (the first phase of which was implemented at the end of 2011), consolidation of hardware platforms to more easily manage its products, and a simplification of the variety in its consumer-level products. The main elements of its strategy are to continue catering to markets ranging from amateurs to professional individuals and full-blown media enterprises; focus on quality of workflows in its products; provide collaborative support for customers; and optimize Avid hardware and software for cross-functionality with third-party products and systems.
The company makes most of its sales (about 60%) through distributors, resellers, and retailers; it also sells directly via sales reps and e-commerce channels.
In 2010 the company acquired Euphonix, a provider of large-format digital audio consoles, media controllers, and peripherals. The purchase gives Avid a broader portfolio of audio and video control surfaces and consoles for customers ranging from the independent professional to the high-end broadcaster. Avid will continue to sell and support the Euphonix products and its ICON digital console offering.
Blum Capital Partners, represented by director John Park, a partner at Blum, owns nearly one-quarter of Avid Technology.
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