About Avid Technology, Inc.
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 from services.
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 development.
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 it.
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.
65-75 Network Drive
Burlington, MA 01803
Phone: (978) 640 6789
Employer Type: Publicly Owned
Stock Symbol: AVID
Stock Exchange: , NASDAQ
SVP and CFO: Brian E. Agle
Chairman and CEO: Louis Hernandez
President: Jeff Rosica
Employees (This Location): 950
Employees (All Locations): 1,446
Studio City, CA
New York, NY
San Antonio, TX