-
Avid Turns The Corner
https://www.marketwatch.com/story/avid-announces-results-for-fourth-quarter-2011-2012-02-07
Avid reported positive income for the first time in since 2007. Positive cash flow and highest gross margin since 2005. Apparently, these great results don’t take into affect the restructuring (politically correct term for firing people) that was recently announced. Those “benefits” (depending on whether you still work there) will be in 2012 results.
They didn’t say how big of an impact MC 6 had on their results. But if you look at Avid’s stock price it basically bottomed early Nov. and has been rising ever since.
-
2 Replies
-
I guess this is good news. If my math is right… the quarter before they lost about 8 million. They fired about 200 employees. That probably resulted anywhere from 7-10 million is savings on salary. Now they posted a 1 million profit. Looks like it was a balanced move.
There are plenty of companies firing people even when they take in massive profits. Judging by the small net profit, it looks like they fired just enough to turn around. Totally ignorant statement here, but it seems like it was an appropriate move, not overboard in either direction.
-
I thought they had said the the financial benefit of letting those people go wouldn’t show in their earnings until next year?
If that’s the case, then perhaps they didn’t need to let them go. Or perhaps as many.
It didn’t seem as if people moving away from Apple and to (or back to) Avid was a part of these numbers. That impact would probably be realized going forward as well.
Either way, it looks like Avid had turned the corner financially and that’s a good thing.
Reply to this Discussion! Login or Sign Up