Knobias Clip Report (07-25-2008) AVID
Submitted By Knobias ClipReport
AVID: Management Discusses Q2 Earnings and Provides FY08 Guidance
By Fain Hughes, fhughes@knobias.com
Shares of Avid Technology, Inc. (AVID) saw solid gains on Friday after the Company reported revenue of $222.9 million for the three-month period ended June 30, 2008, compared to $225.3 million for the same period in 2007. Non-GAAP earnings per share were $0.00, compared to $0.20 in the second quarter of 2007.
Gary Greenfield, Chairman and CEO of Avid Technology, explained in a conference call, “While we are certainly not satisfied with breaking-even, we do believe that top line growth with improving margins is an indication of customer confidence in Avid during our transformation, and that we are delivering on our committment to progressively improve our results during the year. We have also improved the quality, performance and value of our products across the board and successfully launched new products during the quarter.”
“We are pleased to hitting key milestones and showing improvement in top and bottom line results, but that is not the end game here. A lot of hard work being accomplished now will not show up in financial results until future quarters. We are not looking for the quick, one-time payout. Instead, for our shareholders we are targeting long term shareholder value increase.”
Mr. Greenfield noted, “We are aligning our expenses with revenue and creating a more competitive cost structure that allows us to invest in new areas of our business that are strategically important to our future.”
Kenneth A. Sexton, Chief Administrative Officer and CFO of Avid Technology, added, “We expect our revenue for FY08 to be in the range of $880 million to $910 million. Because 2008 is a transition year, we expect our non-GAAP EPS to be in the $0.25 to $0.35 range. Gross margins are expected to improve slightly in the second half of the year. Our ultimate goal is to reach double-digit operating margins in 2010.”
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