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SCRI – Avid Woes Continue with Q3 Warning
https://scri.com/avid-woes-continue-with-q3-warning/
Avid today reported certain preliminary financial results for the fiscal quarter ended September 30, 2012. Avid’s third quarter results are preliminary, subject to change, and expressed in approximate figures. Avid currently plans to hold a conference call on October 29, 2012 to provide additional detail and updated results for the third quarter and information as to current expectations for the fourth quarter.
Avid now sees revenue of $125 million to $127 million, and a GAAP loss of $17 million to $19 million; previous Street consensus was for revenue of $145.2 million and a profit of 14 cents a share. In the year ago quarter, Avid had revenue of $164.7 million and a GAAP oss of $7.6 million. The company notes that the Q3 revenue range includes $4 million of revenue from divested businesses; ongoing businesses had revenue of $121 million to $123 million, versus $143 million a year ago.
On a non-GAAP basis, the company expects a net loss for the quarter of $3 million to $5 million.
Avid said the weak quarter “was largely due to sales execution in the Americas region and some transitional issues related to the implementation of the strategic actions announced by the company in July 2012.”
So year over year revenue drops from $143 Million to around 123 Million (sans $4 Million from now divested products). Also a net loss of at least $3 Million. GAAP loss of at least $17 Million vs $7.6 Million a year ago. The slow but steady decline continues.
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16 Replies
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[Craig Seeman] ” The slow but steady decline continues.”
Not being an Avid shareholder I see this as great new – each loss brings us that much closer to Avid being bought up by BMD, at which point MC is issued for free, Symphony goes for $200 and Isis goes for a penny to the pound and they throw in a free BM cine camera with each install.
Herb Sevush
Zebra Productions
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nothin’ attached to nothin’
“Deciding the spine is the process of editing” F. Bieberkopf -
Yes a free BMCC with every Avid install…wait a minute, isnt that vaporware 😉
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Craig, I’m starting to have the image of you rubbing your hands in delight before you press send, and than laughing maniacally after you send it.
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[Craig Seeman] “So year over year revenue drops from $143 Million to around 123 Million (sans $4 Million from now divested products). Also a net loss of at least $3 Million. GAAP loss of at least $17 Million vs $7.6 Million a year ago. The slow but steady decline continues.”
https://en.wikipedia.org/wiki/Goodwill_(accounting)
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I can’t help but think something like that might happen.
I suspect Avid’s view is sell Isis and a bunch of MCs or Symphonies with it but one way or another, the revenue seems to be on a continuous decline.
Again this is about Avid, not MC. It’s quite possible MC/Symphony is selling well but it’s not really their big revenue generating product. Avid seems to refuse to look at their business model IMHO.
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That would make a great screen shot wouldn’t it? 😉
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Ah Avid’s reputation. Maybe that’s …. err…. driving their sales….
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Maybe it could be an episode of “Shark Tank.”
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[Herb Sevush] “Not being an Avid shareholder I see this as great new – each loss brings us that much closer to Avid being bought up by BMD, at which point MC is issued for free, Symphony goes for $200 and Isis goes for a penny to the pound and they throw in a free BM cine camera with each install.”
Honestly, I know it still has a bunch of loyal users, but MC’s interface is utterly impenetrable to new users and the whole way it manages media is bizarre. The app generally has the feel of a program which has had far too much grafted onto it over the years and which has survived through a few too many major shifts in related markets (the rise of DV, the shift to file-based workflow, etc.), and I bet this is reflected in the coherence (or rather incoherence) of the codebase as well. Consider that both Apple (with FCP X last year) and Adobe (with Premiere Pro in 2003) considered it prudent to discard and replace NLE environments that weren’t nearly as old as Media Composer now is. Avid is even rumored to have started doing this with MC, but supposedly backed off out of fear that it would alienate its conservative customer base.
How much value would an app like this really have to a company like Blackmagic? It seems like almost the exact opposite of the NLE they’d build if they built one themselves.
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Digital Workflow/Colorist, Nice Dissolve.You should follow me on Twitter here. Or read our blog.
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[Chris Kenny] “How much value would an app like this really have to a company like Blackmagic? It seems like almost the exact opposite of the NLE they’d build if they built one themselves.”
Looking at the software utilities they’ve developed in house, you could expect something lightweight, super simple yet deceptively powerful.
In other words, more like FCPX. 🙂
I’m with Herb on this. It’s fun to kick around, and I’ve done it many times myself, but seriously, it makes no sense whatsoever. As I’ve noted elsewhere, Avid could spin off Pro Tools easily enough, although they have no incentive to. No way could they sell Media Composer by itself, though. None of Avid’s shared storage, workgroup offerings, I/O hardware or newsroom offerings make sense without it, and I can’t imagine Grant wanting to get into any of those businesses.
Although who knows? Nobody’s going to win any money betting what businesses Grant doesn’t want to get into.
Tim Wilson
Vice President, Editor-in-Chief
Creative COW
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