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Avid In Danger Of Delisting From NASDAQ
Interesting mention of the effect FCP X is having…
Apple’s update to its video-editing software Final Cut Pro included additional features that would make it easier for editors preparing video for broadcast. The update hampered Avid’s efforts of courting Final Cut X users because its first release didn’t include specific features needed by professional editors.
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21 Replies
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[Gerry Fraiberg] “Apple’s update to its video-editing software Final Cut Pro included additional features that would make it easier for editors preparing video for broadcast. The update hampered Avid’s efforts of courting Final Cut X users because its first release didn’t include specific features needed by professional editors.”
Um…is this an Onion article?
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Nice to know the business press is pretty clueless.
Oliver
Oliver Peters Post Production Services, LLC
Orlando, FL
http://www.oliverpeters.com -
While it may be devoid of the finer points. I’m not sure what exactly is inaccurate in the reporting. FCP X did add features which allowed professional (including myself) to start using it.
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I have always been somewhat surprised that the “street” sees Avid as just Media Composer. Not that it is an important element in the portfolio with a halo effect on other solutions, but interesting to always see the pigeon holing of the company as one product. Not that there are challenges and such with Avid – Perhaps Avid needs to do a better job at telling its own story, but I have always found the street’s understanding of the company limited.
And it will be interesting to see what this whole thing has been about when it is said and done.
Michael
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[Brett Sherman] “While it may be devoid of the finer points. I’m not sure what exactly is inaccurate in the reporting. FCP X did add features which allowed professional (including myself) to start using it.”
Because FCP X’s updates have nothing whatsoever to do with Avid’s current financial position. For the reporter to make the inference that this is somehow tied to the NASDAQ situation is uninformed at best.
– Oliver
Oliver Peters Post Production Services, LLC
Orlando, FL
http://www.oliverpeters.com -
[Brett Sherman] “While it may be devoid of the finer points. I’m not sure what exactly is inaccurate in the reporting. FCP X did add features which allowed professional (including myself) to start using it.
“Sure it did. But X adding beta monitoring and multicam are hardly the source of Avid’s problems, or the potential origin of its downfall. You could make that argument about the whole history of FCP 1-X and you’d be a lot closer, but you’d still be wrong.
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[Oliver Peters] “For the reporter to make the inference that this is somehow tied to the NASDAQ situation is uninformed at best.”
Emphasis on at best.
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Details from Yahoo Business
https://biz.yahoo.com/e/130321/avid8-k.html
also reported on CNBC
https://www.cnbc.com/id/100579413Also, from what I understand, the issue around bug fixes and updates and their accounting is that it might have resulted in Avid overstating their revenue in their early 2012 report. That would mean that people who bought Avid stock after that were buying based false information regarding their finances from that point forward. Hence the nature of all the law firms looking to start class action lawsuits.
So it seems Avid delayed their report because that probably would have perpetuated their revenue issue, perpetuating the reporting problem from the previous year. One might guess that the CEO change might have been due to some internal discovery around this issue.
In any case, Avid is now facing two serious issues. One is the SEC and legal repercussion due to the issues around reporting from early 2012. The other is the potential delisting if they don’t file an approved plan by May 20 and must regain compliance by Sept 16. If the May 20th plan is not accepted they can appeal.
I can speculate where this might all might lead to….
I’ll just say this, think about how this might affect some of their potential “big iron” sales. I suspect a lot of near term purchases might get put on hold until May 20.The vibe around the Avid booth at NAB might be very interesting.
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[Craig Seeman] “think about how this might affect some of their potential “big iron” sales. “
I can’t see how this would affect any potential sales, but feel free to speculate, you always have before.
Herb Sevush
Zebra Productions
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nothin’ attached to nothin’
“Deciding the spine is the process of editing” F. Bieberkopf
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