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, post-production facilities, radio broadcasters,
and TV stations, as well as independent professionals, and
amateurs. Avid also makes newsroom automation systems, digital
storage systems, and music notation and education software. With
sales offices in about 25 countries, about 63% of revenue comes
from outside the US.
Avid makes hardware and software for capturing, editing and
distributing digital video and audio. Video products account for
40% of revenue and audio products, 27%. About 33% of revenue comes
The revenue breakdown according to product lines is video
storage tools, 22%; professional video creation tools, 10%; media
management products, 7%; digital audio software and workstation
products, which includes ProTools, 14%; and control surfaces,
consoles and live-sound systems, 10%.
The Europe, Middle East and Africa region accounts for 41% of
Avid's revenue with the US bringing in 37% of revenue. Asia-Pacific
brings in about 15% with other countries in the Americas generating
about 7%. The company operates manufacturing facilities in the US
and Ireland. Besides its own research and development operations in
Massachusetts and California n the US and Germany and Canada, Avid
outsources some R&D to partners in Ukraine and Thailand.
Sales and Marketing
Avid sells through a direct sales channel made up of internal
sales people for certain customers and markets and e-commerce sales
programs. It also sells through independent distributors,
value-added resellers, dealers, and retailers. Customers range from
amateur enthusiasts to corporate communications departments to
major movie studios.
Avid's revenue has trended lower since reaching almost $930
million in 2007. Revenue dropped 5% to $505 million in 2015, down
from about $530 million in 2014. Overall product sales were down
11% and sales in major geographic areas were off in 2015 compared
to 2014. Services revenue rose 12% and Asia/Pacific-generated
revenue was 4% higher.
Net income fell 83% in 2015 to $2.5 million in 2015 from $14.7
million in 2014. Besides lower revenue, Avid had higher
restructuring costs in 2015 and it spent more on research and
Avid posted negative cash flow from operations of $34 million in
2015, compared to negative $9 cash from operations in 2014.
In 2015 Avid's restructuring cut some 110 jobs from the payroll.
The company also consolidated facilities and transferred some
operations to lower cost regions. The annualized restructuring
costs were about $68 million. The company also secured a $100
million financial agreement with Cerberus Business Finance.
The company calls its strategy for grow Avid Everywhere. It is
based on the Avid MediaCentral Platform, an open and customizable
foundation that streamlines and simplifies workflows by integrating
Avid products and those from third parties that run on top of
The plan is designed to improve return on Avid's distribution
network, bring more cross-selling with top customers, and open the
untapped market of independent professionals.
Mergers and Acquisitions
In 2015 Avid acquired Kfar Saba, an Israel based provider of 3D
real-time graphics, video servers, and related asset management
products, for $73.4 million. This acquisition adds applications to
Avid's Studio Suite.