Avid Technology, Inc. (NASDAQ:AVID) jumped to a new annual high on Friday after
reporting strong fourth fiscal quarter results that beat expectations easily,
and raising 2011 guidance. The Company reported net loss for the fourth fiscal
quarter of $0.571 million or 1 cent a share, narrowing the loss by 97% from net
loss of $17.9 million or 48 cents a share, in the same quarter last year.
Excluding amortization of intangible assets, stock-based compensation,
restructuring and other charges, gains on asset sales, acquisition-related costs
and related tax adjustments, adjusted net income of $14.2 million or 37 cents a
share has been recorded compared to adjusted net loss of $1.4 million or 4 cents
a share in the same quarter last year. This Adjusted EPS of 37 cents a share
beat the analysts' expectation of 9 cents a share by 28 cents. Revenue climbed
11.79% year over year during the quarter to $195.3 million from $174.7 million
for the same period last year, beating the analysts' expectation of $178.9
million. Video revenue (60% of revenue) increased 11% year over year and 7%
quarter over quarter to $117.8 million & Audio revenue (40% of revenue)
increased 13% year over year and 7% quarter over quarter to $77.6 million during
the quarter. The launch of the new version of Pro Tools audio suite drove growth
in the audio segment. Both Audio and Video saw double digit year over year
revenue growth in the fourth quarter, driving the first overall double-digit
revenue growth for Avid in over 4 years. The company is looking for 5% Performa
operating margin in 2011 with revenue of $700-$720 million, up from a prior
range of $690-$710 million. Analysts were expecting the Company to report
revenues of $663 million for fiscal 2011. Shares of the company climbed $1.75 or
10.10% to trade close at $19.08 following strong fourth fiscal quarter results
and 2011 guidance. It climbed to its new 52 week high of $20.43, 52 week low
being $11.04. Volume of 731,609 shares has been traded compared to the daily
average of 91,612 shares. The market capital of the stock stands at $727.64
million. Avid Technology, Inc. is a provider of digital media content-creation
solutions for film, video, audio and broadcast professionals, as well as artists
and home enthusiasts. It provides digital media content-creation solutions in
six segments: education, creative enthusiasts, independent professionals,
government and commercial, post facilities and broadcast.
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