Met or Exceeded Guidance for All Metrics and
Delivered Positive Adjusted Free Cash Flow in Q4
Avid® (Nasdaq:AVID) announced its fourth quarter and full year 2016
financial results today and provided financial guidance for first
quarter and full year 2017.
Highlights of Fourth Quarter 2016 Results
- GAAP and Non-GAAP Revenue was $115.3 million, in-line with
guidance and down $23.5 million and $24.4 million year-over-year
for GAAP and Non-GAAP, respectively. GAAP and Non-GAAP Revenue was
down $3.7 million sequentially.
- GAAP Gross Margin was 60.3%, up 1.2 percentage points
year-over-year and down 3.1 percentage points sequentially;
non-GAAP Gross Margin was 61.9%, up 1.1 percentage points
year-over-year and down 3.2 percentage points sequentially.
- GAAP Operating Expenses were $58.5 million, down $23.8 million
year-over-year and down $8.4 million sequentially; Non-GAAP
Operating Expenses were $50.1 million, below the guidance range,
down $21.2 million year-over-year and down $8.3 million
sequentially.
- GAAP Net Income was $5.2 million, up $9.6 million
year-over-year and down $3.9 million sequentially; Adjusted EBITDA
was $25.2 million, above the guidance range, up $8.2 million
year-over-year and up $2.4 million sequentially.
- GAAP Net Cash used in Operating Activities was $270 thousand,
down $2.3 million year-over-year and an improvement of $3.6 million
sequentially; Adjusted Free Cash Flow was $2.0 million, in-line
with guidance, down $0.3 million year-over-year and an improvement
of $4.6 million sequentially.
- Bookings and Constant Currency Bookings were $125.3 million and
$134.5 million, in-line with guidance and down $67.8 million and
$66.5 million year-over-year, respectively. The declines were
attributable to the large Sinclair Enterprise deal booked in
December 2015. Bookings and Constant Currency Bookings were up
sequentially $35.7 million and $39.7 million, respectively.
Avid Everywhere Momentum Continues
- More than 42,700 enterprise users on the MediaCentral platform
at the end of 2016, a 29% increase from the beginning of the
year
- More than 60,700 paying individual, cloud-enabled subscribers,
a substantial majority of whom are new customers to Avid, at the
end of 2016, a 2.4x increase since the beginning of the year
- Added more than 10,700 paying subscribers in Q4,
representing a 21% increase from the end of Q3 2016, and largest
quarterly paying subscriber increase in Avid’s history
- Digital bookings in Q4 2016 increased 27% year-over-year and
46% sequentially; digital bookings in 2016 increased 43% from
2015.
- Bookings attributable to recurring revenue represented 45% of
total bookings in Q4 2016, up from 39% in Q3 2016; bookings
attributable to recurring revenue represented 38% of total bookings
in 2016, flat from 2015, which included the impact of the large
Sinclair Enterprise deal.
“Thanks to strong execution in key focus areas we met or
exceeded quarterly guidance for all of our metrics and delivered
positive Adjusted Free Cash Flow,” said Louis Hernandez, Jr,
Chairman and CEO of Avid. “We saw sequential bookings growth across
all customer tiers and geographies. This performance included a
rebound in storage, an improvement in Orad applications, continued
growth of cloud-enabled subscribers and digital sales, and traction
on enterprise deals such as the global enterprise and cloud
agreement with Al Jazeera. Execution on our efficiency program
drove a 29% year-over-year reduction in operating expenses. We are
confident that we can complete the remaining efficiency program in
2017, which includes more than $30 million of additional annual
savings.
“Our Q4 results reveal an emerging financial model that will be
more predictable and have a significantly improved Adjusted Free
Cash Flow conversion of Adjusted EBITDA. This is a direct
result of our achievements with the transformation: the roll-off of
non-marketed products; completion of the efficiency program; and
the cessation by the second quarter of 2017 of pre-2011
amortization and elimination of implied PCS revenue. As Avid’s
transformation comes to a close, we are quickly preparing for the
next phase of our plan by focusing on investments and partnerships
that will drive our cloud-enabled growth strategy,” Mr. Hernandez
concluded.
Financial Guidance
Avid’s first quarter and full year 2017 financial guidance are
set forth in the table below.
The guidance range for Q1 includes the impact of the commercial
agreement we announced with Beijing Jetsen Technology Co., Ltd.
(“Jetsen”) on January 31, 2017. As our exclusive distributor in the
region, Jetsen has committed to minimum bookings and cash payments
of $76 million over three years, which includes annual growth of
approximately 15%. Guidance ranges for revenue are informed by our
recurring revenue and revenue backlog, as well as expectations for
our bookings performance. Additional cost savings related to the
continued execution of our efficiency program are reflected in the
guidance ranges for Non-GAAP Operating Expenses, Adjusted EBITDA
and Adjusted Free Cash Flow. Guidance ranges imply a significantly
improved Adjusted Free Cash Flow conversion of Adjusted EBITDA, due
to our improving core operating margins and reduction of the impact
related to pre-2011 amortization and elimination of implied PCS
revenue.
“As we head into 2017, we are encouraged by the core trends in
our Q4 performance which provides important visibility into our
guidance for 2017. We believe our amended noteholder agreement will
provide Avid with greater financial flexibility as we complete the
transformation and deliver a scalable and sustainably profitable
business,” said Brian E. Agle, Avid’s Senior Vice President and
Chief Financial Officer.
Q1 and Full Year 2017 Guidance
|
(in $
millions) |
Q1 2017 |
Full Year 2017 |
Bookings
(Constant Currency) |
$162-$176 |
|
Bookings |
$154-$168 |
|
Revenue |
$100-$110 |
$405-$435 |
Non-GAAP
Operating Expenses |
$54-$58 |
$205-$220 |
Adjusted
EBITDA |
$8-$14 |
$45-$55 |
Adjusted
Free Cash Flow |
($2)-$6 |
$7-$20 |
All guidance presented by the Company is inherently uncertain
and subject to numerous risks and uncertainties. Avid’s actual
future results of operations and cash flows could differ materially
from those shown in the tables above. For a discussion of some of
the key assumptions underlying the guidance, as well as the key
risks and uncertainties associated with these forward-looking
statements, please see “Forward Looking Statements” below as well
as the Avid Technology Fourth Quarter and Full Year 2016 Business
Update presentation posted on Avid’s investor relations
website.
Avid includes non-GAAP financial measures in this press release,
including non-GAAP Revenue, Adjusted EBITDA, Adjusted Free Cash
Flow, non-GAAP Operating Income (loss), non-GAAP Operating Expenses
and non-GAAP Gross Margin. The Company also includes the
operational metric of bookings, revenue backlog and recurring
revenue bookings in this release. Avid believes the non-GAAP
financial measures and operational metrics provided in this release
provide helpful information to investors with respect to evaluating
the Company’s performance. Unless noted, all financial information
is reported based on actual exchange rates. Definitions of
the non-GAAP financial measures are included in our Form 8-K filed
today. Reconciliations of the non-GAAP financial measures in this
release to the Company's comparable GAAP financial measures for the
periods presented are set forth below and are also included in the
supplemental financial and operational data sheet available on our
investor relations webpage at ir.avid.com, which also includes
definitions of the operational metrics.
The earnings release also includes forward-looking non-GAAP
financial measures, including Adjusted EBITDA, non-GAAP Operating
Expenses and Adjusted Free Cash Flow. Reconciliations of these
forward-looking non-GAAP financial measures were not included in
the Earnings Release due to the high variability and difficulty in
making accurate forecasts and projections of some of the excluded
information, together with some of the excluded information not
being ascertainable or accessible at this time. As a result, the
Company is unable to quantify certain amounts that would be
required to be included in the most directly comparable GAAP
financial measure without unreasonable efforts.
Conference Call
A conference call to discuss Avid's financial results for the
fourth quarter and full year 2016 will be held on Thursday, March
23, 2017 at 5:00 p.m. ET. The call will be open to the public and
can be accessed by dialing 719-325-2278 and referencing
confirmation code 2768857. You may also listen to the call on the
Avid Investor Relations website. To listen via the website, go to
the events tab at ir.avid.com for complete details prior to the
start of the conference call. A replay of the call will also be
available on the Avid Investor Relations website shortly after the
completion of the call.
Forward-Looking Statements
Certain information provided in this press release, including
the tables attached hereto, include forward-looking statements that
involve risks and uncertainties, including projections and
statements about our anticipated plans, objectives, expectations
and intentions. Among other things, this press release includes
estimated results of operations for 2017, which estimates are based
on a variety of assumptions about key factors and metrics that will
determine our future results of operations, including, for example,
anticipated market uptake of new products, realization of
identified efficiency programs and market based cost
inflation. Other forward-looking statements include, without
limitation, statements based upon or otherwise incorporating
judgments or estimates relating to future performance such as
future operating results and expenses; earnings; bookings; backlog;
revenue backlog conversion rate; product mix and free cash flow;
our long-term and recent cost savings initiatives and the
anticipated benefits therefrom; our future strategy and business
plans; our product plans, including products under development,
such as cloud and subscription based offerings; our liquidity and
ability to raise capital; the anticipated benefits of the Orad
acquisition, including estimated synergies, including effects on
future financial and operating results; and our liquidity. The
projected future results of operations, and the other
forward-looking statements in this release are based on current
expectations as of the date of this release and subject to known
and unknown risks and uncertainties that could cause actual results
to differ materially from those expressed or implied by such
statements, including but not limited to the effect on our sales,
operations and financial performance resulting from: our liquidity;
our ability to execute our strategic plan, including cost savings
initiatives, and meet customer needs; our ability to retain and
hire key personnel; our ability to produce innovative products in
response to changing market demand, particularly in the media
industry; our ability to successfully accomplish our product
development plans; competitive factors; history of losses;
fluctuations in our revenue, based on, among other things, our
performance and risks in particular geographies or markets; our
higher indebtedness and ability to service it and meet the
obligations thereunder; restrictions in our credit facilities; our
move to a subscription model and related effect on our revenues and
ability to predict future revenues; elongated sales cycles;
fluctuations in foreign currency exchange rates; seasonal factors;
adverse changes in economic conditions; variances in our revenue
backlog and the realization thereof; the identified material
weaknesses in our internal control over financial reporting; and
the possibility of legal proceedings adverse to our company.
Moreover, the business may be adversely affected by future
legislative, regulatory or changes, including tax law changes, as
well as other economic, business and/or competitive factors. The
risks included above are not exhaustive. Other factors that could
adversely affect our business and prospects are set forth in our
public filings with the SEC. Forward-looking statements
contained herein are made only as to the date of this press release
and we undertake no obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
About AvidThrough Avid Everywhere™, Avid
delivers the most open and efficient media platform, connecting
content creation with collaboration, asset protection, distribution
and consumption. Avid’s preeminent customer community uses
Avid’s comprehensive tools and workflow solutions to create,
distribute and monetize the most watched, loved and listened
to media in the world—from prestigious and award-winning feature
films, to popular television shows, news programs and
televised sporting events, and celebrated music recordings and live
concerts. With the most flexible deployment and pricing options,
Avid’s industry-leading solutions include Pro Tools®, Media
Composer®, Avid NEXIS™, Interplay®, ProSet™ and RealSet™, Maestro™,
PlayMaker™, and Sibelius®. For more information about Avid
solutions and services, visit www.avid.com, connect with Avid
on Facebook, Instagram, Twitter, YouTube, LinkedIn,
or subscribe to Avid Blogs.
© 2017 Avid Technology, Inc. All rights reserved. Avid, the Avid
logo, Avid Everywhere, Avid NEXIS, iNEWS, Interplay, AirSpeed,
MediaCentral, Media Composer, PhaseFind, Pro Tools, ScriptSync and
Sibelius are trademarks or registered trademarks of Avid
Technology, Inc. or its subsidiaries in the United States and/or
other countries. The Interplay name is used with the permission of
the Interplay Entertainment Corp. which bears no responsibility for
Avid products. Product features, specifications, system
requirements and availability are subject to change without
notice.
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
(unaudited
- in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Net
revenues: |
|
|
|
|
|
|
|
|
|
Products |
|
$ |
59,269 |
|
|
$ |
91,247 |
|
|
$ |
283,110 |
|
|
$ |
336,371 |
|
|
Services |
|
|
56,026 |
|
|
|
47,559 |
|
|
|
228,820 |
|
|
|
169,224 |
|
|
Total net
revenues |
|
|
115,295 |
|
|
|
138,806 |
|
|
|
511,930 |
|
|
|
505,595 |
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues: |
|
|
|
|
|
|
|
|
|
Products |
|
|
29,174 |
|
|
|
39,465 |
|
|
|
111,579 |
|
|
|
131,881 |
|
|
Services |
|
|
14,702 |
|
|
|
15,447 |
|
|
|
59,828 |
|
|
|
61,501 |
|
|
Amortization of
intangible assets |
|
|
1,950 |
|
|
|
1,950 |
|
|
|
7,800 |
|
|
|
4,063 |
|
|
Total cost of
revenues |
|
|
45,826 |
|
|
|
56,862 |
|
|
|
179,207 |
|
|
|
197,445 |
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
69,469 |
|
|
|
81,944 |
|
|
|
332,723 |
|
|
|
308,150 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research and
development |
|
|
18,773 |
|
|
|
24,190 |
|
|
|
81,564 |
|
|
|
95,898 |
|
|
Marketing and
selling |
|
|
21,311 |
|
|
|
30,091 |
|
|
|
110,338 |
|
|
|
122,511 |
|
|
General and
administrative |
|
|
13,112 |
|
|
|
21,463 |
|
|
|
61,471 |
|
|
|
74,109 |
|
|
Amortization of
intangible assets |
|
|
363 |
|
|
|
786 |
|
|
|
2,498 |
|
|
|
2,354 |
|
|
Restructuring costs,
net |
|
|
4,959 |
|
|
|
5,766 |
|
|
|
12,837 |
|
|
|
6,305 |
|
|
Total operating
expenses |
|
|
58,518 |
|
|
|
82,296 |
|
|
|
268,708 |
|
|
|
301,177 |
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
|
|
10,951 |
|
|
|
(352 |
) |
|
|
64,015 |
|
|
|
6,973 |
|
|
|
|
|
|
|
|
|
|
|
Interest
and other expense, net |
|
|
(4,622 |
) |
|
|
(1,727 |
) |
|
|
(18,671 |
) |
|
|
(6,408 |
) |
Income
(loss) before income taxes |
|
|
6,329 |
|
|
|
(2,079 |
) |
|
|
45,344 |
|
|
|
565 |
|
|
|
|
|
|
|
|
|
|
|
Provision
for (benefit from) income taxes |
|
|
1,108 |
|
|
|
2,306 |
|
|
|
(2,875 |
) |
|
|
(1,915 |
) |
Net income
(loss) |
|
$ |
5,221 |
|
|
$ |
(4,385 |
) |
|
$ |
48,219 |
|
|
$ |
2,480 |
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per common share - basic and diluted |
|
$ |
0.13 |
|
|
$ |
(0.11 |
) |
|
$ |
1.20 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic |
|
|
40,637 |
|
|
|
39,439 |
|
|
|
40,021 |
|
|
|
39,423 |
|
Weighted-average common shares outstanding - diluted |
|
|
40,746 |
|
|
|
39,439 |
|
|
|
40,176 |
|
|
|
40,380 |
|
|
|
|
|
|
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of GAAP financial measures to Non-GAAP
financial measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited - in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
|
|
December 31, |
|
December 31, |
|
September 30, |
|
March 31, |
|
Non-GAAP
revenue |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
GAAP
revenue |
|
$ |
115,295 |
|
|
$ |
138,806 |
|
|
$ |
511,930 |
|
|
$ |
505,595 |
|
|
$ |
119,019 |
|
|
$ |
137,436 |
|
|
$ |
143,547 |
|
|
$ |
119,586 |
|
|
Amortization of
acquired deferred revenue |
|
|
- |
|
|
|
858 |
|
|
|
594 |
|
|
|
858 |
|
|
|
- |
|
|
|
- |
|
|
|
269 |
|
|
|
- |
|
|
Non-GAAP
revenue |
|
|
115,295 |
|
|
|
139,664 |
|
|
|
512,524 |
|
|
|
506,453 |
|
|
|
119,019 |
|
|
|
137,436 |
|
|
|
143,816 |
|
|
|
119,586 |
|
|
Pre-2011 Revenue |
|
|
2,268 |
|
|
|
12,017 |
|
|
|
24,772 |
|
|
|
58,543 |
|
|
|
5,368 |
|
|
|
13,635 |
|
|
|
9,338 |
|
|
|
17,483 |
|
|
Elim PCS |
|
|
8,100 |
|
|
|
7,000 |
|
|
|
52,900 |
|
|
|
22,500 |
|
|
|
12,000 |
|
|
|
15,500 |
|
|
|
17,600 |
|
|
|
- |
|
|
Non-GAAP
Revenue w/o Pre-2011 and Elim |
|
|
104,927 |
|
|
|
120,647 |
|
|
|
434,852 |
|
|
|
425,410 |
|
|
|
101,651 |
|
|
|
108,301 |
|
|
|
116,878 |
|
|
|
102,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit |
|
|
69,469 |
|
|
|
81,944 |
|
|
|
332,723 |
|
|
|
308,150 |
|
|
|
75,391 |
|
|
|
87,814 |
|
|
|
100,063 |
|
|
|
72,094 |
|
|
Amortization of
acquired deferred revenue |
|
|
- |
|
|
|
858 |
|
|
|
594 |
|
|
|
858 |
|
|
|
- |
|
|
|
- |
|
|
|
269 |
|
|
|
- |
|
|
Amortization of
intangible assets |
|
|
1,950 |
|
|
|
1,950 |
|
|
|
7,800 |
|
|
|
4,063 |
|
|
|
1,950 |
|
|
|
1,950 |
|
|
|
1,950 |
|
|
|
- |
|
|
Stock-based
compensation |
|
|
(48 |
) |
|
|
171 |
|
|
|
440 |
|
|
|
823 |
|
|
|
157 |
|
|
|
183 |
|
|
|
179 |
|
|
|
254 |
|
|
Non-GAAP gross
profit |
|
|
71,371 |
|
|
|
84,923 |
|
|
|
341,557 |
|
|
|
313,894 |
|
|
|
77,498 |
|
|
|
89,947 |
|
|
|
102,461 |
|
|
|
72,348 |
|
|
Pre-2011 Revenue |
|
|
2,268 |
|
|
|
12,017 |
|
|
|
24,772 |
|
|
|
58,543 |
|
|
|
5,368 |
|
|
|
13,635 |
|
|
|
9,338 |
|
|
|
17,483 |
|
|
Elim PCS |
|
|
8,100 |
|
|
|
7,000 |
|
|
|
52,900 |
|
|
|
22,500 |
|
|
|
12,000 |
|
|
|
15,500 |
|
|
|
17,600 |
|
|
|
- |
|
|
Non-GAAP gross
profit w/o Pre-2011 and Elim |
|
|
61,003 |
|
|
|
65,906 |
|
|
|
263,885 |
|
|
|
232,851 |
|
|
|
60,130 |
|
|
|
60,812 |
|
|
|
75,523 |
|
|
|
54,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses |
|
|
58,518 |
|
|
|
82,296 |
|
|
|
268,708 |
|
|
|
301,177 |
|
|
|
66,887 |
|
|
|
73,409 |
|
|
|
74,316 |
|
|
|
70,979 |
|
|
Less Amortization of
intangible assets |
|
|
(363 |
) |
|
|
(786 |
) |
|
|
(2,498 |
) |
|
|
(2,354 |
) |
|
|
(567 |
) |
|
|
(786 |
) |
|
|
(786 |
) |
|
|
(374 |
) |
|
Less Stock-based
compensation |
|
|
(1,847 |
) |
|
|
(1,612 |
) |
|
|
(7,475 |
) |
|
|
(8,691 |
) |
|
|
(1,571 |
) |
|
|
(2,206 |
) |
|
|
(1,919 |
) |
|
|
(2,208 |
) |
|
Less Restructuring
costs, net |
|
|
(4,959 |
) |
|
|
(5,766 |
) |
|
|
(12,837 |
) |
|
|
(6,305 |
) |
|
|
(5,314 |
) |
|
|
- |
|
|
|
(2,777 |
) |
|
|
- |
|
|
Less Restatement
costs |
|
|
(109 |
) |
|
|
(51 |
) |
|
|
(295 |
) |
|
|
(1,039 |
) |
|
|
(38 |
) |
|
|
(287 |
) |
|
|
(80 |
) |
|
|
(1,807 |
) |
|
Less Acquisition,
integration and other costs |
|
|
(129 |
) |
|
|
(1,595 |
) |
|
|
(587 |
) |
|
|
(9,232 |
) |
|
|
336 |
|
|
|
(1,965 |
) |
|
|
(515 |
) |
|
|
(2,342 |
) |
|
Less Efficiency program
costs |
|
|
(967 |
) |
|
|
(1,144 |
) |
|
|
(4,305 |
) |
|
|
(1,144 |
) |
|
|
(1,338 |
) |
|
|
- |
|
|
|
(716 |
) |
|
|
- |
|
|
Non-GAAP
operating expenses |
|
|
50,144 |
|
|
|
71,342 |
|
|
|
240,711 |
|
|
|
272,412 |
|
|
|
58,395 |
|
|
|
68,165 |
|
|
|
67,523 |
|
|
|
64,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss) |
|
|
10,951 |
|
|
|
(352 |
) |
|
|
64,015 |
|
|
|
6,973 |
|
|
|
8,504 |
|
|
|
14,405 |
|
|
|
25,747 |
|
|
|
1,115 |
|
|
Amortization of
acquired deferred revenue |
|
|
- |
|
|
|
858 |
|
|
|
594 |
|
|
|
858 |
|
|
|
- |
|
|
|
- |
|
|
|
269 |
|
|
|
- |
|
|
Amortization of
intangible assets |
|
|
2,313 |
|
|
|
2,736 |
|
|
|
10,298 |
|
|
|
6,417 |
|
|
|
2,517 |
|
|
|
2,736 |
|
|
|
2,736 |
|
|
|
374 |
|
|
Stock-based
compensation |
|
|
1,799 |
|
|
|
1,783 |
|
|
|
7,915 |
|
|
|
9,514 |
|
|
|
1,728 |
|
|
|
2,389 |
|
|
|
2,098 |
|
|
|
2,462 |
|
|
Restructuring costs,
net |
|
|
4,959 |
|
|
|
5,766 |
|
|
|
12,837 |
|
|
|
6,305 |
|
|
|
5,314 |
|
|
|
- |
|
|
|
2,777 |
|
|
|
- |
|
|
Restatement costs |
|
|
109 |
|
|
|
51 |
|
|
|
295 |
|
|
|
1,039 |
|
|
|
38 |
|
|
|
287 |
|
|
|
80 |
|
|
|
1,807 |
|
|
Acquisition,
integration and other costs |
|
|
129 |
|
|
|
1,595 |
|
|
|
587 |
|
|
|
9,232 |
|
|
|
(336 |
) |
|
|
1,965 |
|
|
|
515 |
|
|
|
2,342 |
|
|
Efficiency program
costs |
|
|
967 |
|
|
|
1,144 |
|
|
|
4,305 |
|
|
|
1,144 |
|
|
|
1,338 |
|
|
|
- |
|
|
|
716 |
|
|
|
- |
|
|
Non-GAAP
operating income |
|
|
21,227 |
|
|
|
13,581 |
|
|
|
100,846 |
|
|
|
41,482 |
|
|
|
19,103 |
|
|
|
21,782 |
|
|
|
34,938 |
|
|
|
8,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating income (from above) |
|
|
21,227 |
|
|
|
13,581 |
|
|
|
100,846 |
|
|
|
41,482 |
|
|
|
19,103 |
|
|
|
21,782 |
|
|
|
34,938 |
|
|
|
8,100 |
|
|
Depreciation |
|
|
3,997 |
|
|
|
3,416 |
|
|
|
15,181 |
|
|
|
13,672 |
|
|
|
3,762 |
|
|
|
3,168 |
|
|
|
3,611 |
|
|
|
3,677 |
|
|
Adjusted
EBITDA |
|
|
25,224 |
|
|
|
16,997 |
|
|
|
116,027 |
|
|
|
55,154 |
|
|
|
22,865 |
|
|
|
24,950 |
|
|
|
38,549 |
|
|
|
11,777 |
|
|
Pre-2011 Revenue |
|
|
2,268 |
|
|
|
12,017 |
|
|
|
24,772 |
|
|
|
58,543 |
|
|
|
5,368 |
|
|
|
13,635 |
|
|
|
9,338 |
|
|
|
17,483 |
|
|
Elim PCS |
|
|
8,100 |
|
|
|
7,000 |
|
|
|
52,900 |
|
|
|
22,500 |
|
|
|
12,000 |
|
|
|
15,500 |
|
|
|
17,600 |
|
|
|
- |
|
|
Adjusted EBITDA
w/o Pre-2011 and Elim |
|
|
14,856 |
|
|
|
(2,020 |
) |
|
|
38,355 |
|
|
|
(25,889 |
) |
|
|
5,497 |
|
|
|
(4,185 |
) |
|
|
11,611 |
|
|
|
(5,706 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted free
cash flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net cash (used in) provided by operating
activities |
|
(270 |
) |
|
|
2,061 |
|
|
|
(49,195 |
) |
|
|
(34,026 |
) |
|
|
(3,909 |
) |
|
|
(9,873 |
) |
|
|
(11,209 |
) |
|
|
4,630 |
|
|
Capital
expenditures |
|
|
(1,322 |
) |
|
|
(4,220 |
) |
|
|
(11,003 |
) |
|
|
(15,330 |
) |
|
|
(2,360 |
) |
|
|
(4,368 |
) |
|
|
(4,518 |
) |
|
|
(2,940 |
) |
|
Restructuring
payments |
|
|
1,959 |
|
|
|
564 |
|
|
|
10,940 |
|
|
|
1,616 |
|
|
|
1,496 |
|
|
|
316 |
|
|
|
3,533 |
|
|
|
428 |
|
|
Restatement
payments |
|
|
153 |
|
|
|
321 |
|
|
|
153 |
|
|
|
3,945 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,117 |
|
|
Acquisition,
integration and other payments |
|
|
24 |
|
|
|
1,988 |
|
|
|
1,841 |
|
|
|
6,946 |
|
|
|
196 |
|
|
|
3,368 |
|
|
|
773 |
|
|
|
- |
|
|
Efficiency program
payments |
|
|
1,412 |
|
|
|
1,556 |
|
|
|
6,942 |
|
|
|
1,556 |
|
|
|
1,947 |
|
|
|
- |
|
|
|
1,981 |
|
|
|
- |
|
|
Adjusted free
cash flow |
|
$ |
1,956 |
|
|
$ |
2,270 |
|
|
$ |
(40,322 |
) |
|
$ |
(35,293 |
) |
|
$ |
(2,630 |
) |
|
$ |
(10,557 |
) |
|
$ |
(9,440 |
) |
|
$ |
4,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
These
non-GAAP measures reflect how Avid manages its businesses
internally. Avid’s non-GAAP measures may vary from how other
companies present non-GAAP measures. Non-GAAP financial
measures are not based on a comprehensive set of accounting rules
or principles. This non-GAAP information supplements, and is
not intended to represent a measure of performance in
accordance with, disclosures required by generally accepted
accounting principles, or GAAP. Non-GAAP financial measures
should be considered in addition to, not as a substitute for
or superior to, financial measures determined in accordance with
GAAP. |
|
|
|
|
|
|
|
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
|
|
|
|
Condensed
Consolidated Balance Sheets |
|
|
|
|
(unaudited - in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash
equivalents |
|
$ |
44,948 |
|
|
$ |
17,902 |
|
Accounts receivable, net of allowances of $8,618 and
$9,226 |
|
|
|
|
at December 31, 2016 and December 31, 2015,
respectively |
|
|
43,520 |
|
|
|
58,807 |
|
Inventories |
|
|
50,701 |
|
|
|
48,073 |
|
Prepaid
expenses |
|
|
6,031 |
|
|
|
6,548 |
|
Other current
assets |
|
|
5,805 |
|
|
|
6,119 |
|
Total current assets |
|
|
151,005 |
|
|
|
137,449 |
|
|
|
|
|
|
Property and
equipment, net |
|
|
30,146 |
|
|
|
35,481 |
|
Intangible
assets, net |
|
|
22,932 |
|
|
|
33,219 |
|
Goodwill |
|
|
32,643 |
|
|
|
32,643 |
|
Long-term
deferred tax assets, net |
|
|
1,245 |
|
|
|
2,011 |
|
Other long-term
assets |
|
|
11,610 |
|
|
|
7,123 |
|
Total assets |
|
$ |
249,581 |
|
|
$ |
247,926 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
26,435 |
|
|
$ |
45,511 |
|
Accrued
compensation and benefits |
|
|
25,387 |
|
|
|
28,124 |
|
Accrued expenses
and other current liabilities |
|
|
34,088 |
|
|
|
35,354 |
|
Income taxes
payable |
|
|
1,012 |
|
|
|
1,023 |
|
Short-term
debt |
|
|
5,000 |
|
|
|
5,000 |
|
Deferred
revenues |
|
|
146,014 |
|
|
|
189,887 |
|
Total current liabilities |
|
|
237,936 |
|
|
|
304,899 |
|
|
|
|
|
|
Long-term
debt |
|
|
188,795 |
|
|
|
95,950 |
|
Long-term
deferred tax liabilities, net |
|
|
913 |
|
|
|
3,443 |
|
Long-term
deferred revenues |
|
|
79,670 |
|
|
|
158,495 |
|
Other long-term
liabilities |
|
|
12,178 |
|
|
|
14,711 |
|
Total liabilities |
|
|
519,492 |
|
|
|
577,498 |
|
|
|
|
|
|
Stockholders'
deficit: |
|
|
|
|
Common
stock |
|
|
423 |
|
|
|
423 |
|
Additional
paid-in capital |
|
|
1,043,063 |
|
|
|
1,055,838 |
|
Accumulated
deficit |
|
|
(1,271,148 |
) |
|
|
(1,319,318 |
) |
Treasury stock
at cost |
|
|
(32,353 |
) |
|
|
(58,336 |
) |
Accumulated
other comprehensive loss |
|
|
(9,896 |
) |
|
|
(8,179 |
) |
Total stockholders' deficit |
|
|
(269,911 |
) |
|
|
(329,572 |
) |
Total liabilities and stockholders' deficit |
|
$ |
249,581 |
|
|
$ |
247,926 |
|
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
Condensed Consolidated Statements of Cash
Flows |
|
|
|
(unaudited
- in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
December 31, |
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
Net
income |
$ |
48,219 |
|
|
$ |
2,480 |
|
|
Adjustments
to reconcile net income to net cash used in operating
activities: |
|
|
|
|
|
Depreciation and amortization |
|
25,479 |
|
|
|
20,088 |
|
|
|
Provision
(recovery) for doubtful accounts |
|
886 |
|
|
|
(23 |
) |
|
|
Stock-based
compensation expense |
|
7,916 |
|
|
|
9,514 |
|
|
|
Non-cash
provision for restructuring |
|
1,137 |
|
|
|
- |
|
|
|
Non-cash
interest expense |
|
9,620 |
|
|
|
2,890 |
|
|
|
Unrealized
foreign currency transaction gains |
|
(2,599 |
) |
|
|
(7,013 |
) |
|
|
Benefit
from deferred taxes |
|
(1,842 |
) |
|
|
(6,693 |
) |
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable |
|
14,321 |
|
|
|
2,442 |
|
|
|
|
Inventories |
|
(2,628 |
) |
|
|
3,056 |
|
|
|
|
Prepaid
expenses and other assets |
|
(1,839 |
) |
|
|
10,000 |
|
|
|
|
Accounts
payable |
|
(18,959 |
) |
|
|
11,232 |
|
|
|
|
Accrued
expenses, compensation and benefits and other liabilities |
|
(6,280 |
) |
|
|
(11,842 |
) |
|
|
|
Income
taxes payable |
|
(9 |
) |
|
|
(1,041 |
) |
|
|
|
Deferred
revenues |
|
(122,617 |
) |
|
|
(69,116 |
) |
Net
cash used in operating activities |
|
(49,195 |
) |
|
|
(34,026 |
) |
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
Purchases
of property and equipment |
|
(11,003 |
) |
|
|
(15,330 |
) |
|
Payments
for business acquisitions, net of cash acquired |
|
- |
|
|
|
(65,967 |
) |
|
Increase in
other long-term assets |
|
(30 |
) |
|
|
(43 |
) |
|
Increase in
restricted cash |
|
(4,544 |
) |
|
|
(456 |
) |
Net
cash used in investing activities |
|
(15,577 |
) |
|
|
(81,796 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
Proceeds
from long-term debt, net of issuance costs |
|
100,000 |
|
|
|
120,401 |
|
|
Repayment
of debt |
|
(3,750 |
) |
|
|
- |
|
|
Payments
for repurchase of common stock |
|
- |
|
|
|
(7,999 |
) |
|
Cash paid
for capped call transaction |
|
- |
|
|
|
(10,125 |
) |
|
Proceeds
from the issuance of common stock under employee stock plans |
|
6,184 |
|
|
|
5,035 |
|
|
Common
stock repurchases for tax withholdings for net settlement of equity
awards |
|
(941 |
) |
|
|
(1,559 |
) |
|
Proceeds
from revolving credit facilities |
|
25,000 |
|
|
|
70,500 |
|
|
Payments on
revolving credit facilities |
|
(30,000 |
) |
|
|
(65,500 |
) |
|
Payments
for credit facility issuance costs |
|
(5,041 |
) |
|
|
(1,195 |
) |
Net
cash provided by financing activities |
|
91,452 |
|
|
|
109,558 |
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
366 |
|
|
|
(890 |
) |
Net
increase (decrease) in cash and cash equivalents |
|
27,046 |
|
|
|
(7,154 |
) |
Cash and
cash equivalents at beginning of period |
|
17,902 |
|
|
|
25,056 |
|
Cash and
cash equivalents at end of period |
$ |
44,948 |
|
|
$ |
17,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
|
|
|
|
|
|
|
Supplemental Revenue Information |
|
|
|
|
|
|
|
|
|
|
(unaudited
- in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
|
|
|
Revenue
Backlog* |
2016 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-2011 |
$ |
1,095 |
|
$ |
3,364 |
|
$ |
25,868 |
|
|
|
|
|
|
Post-2010 |
$ |
224,589 |
|
$ |
236,644 |
|
$ |
322,514 |
|
|
|
|
|
|
Deferred
Revenue |
$ |
225,684 |
|
$ |
240,008 |
|
$ |
348,382 |
|
|
|
|
|
|
Other Backlog |
$ |
203,625 |
|
$ |
197,153 |
|
$ |
203,704 |
|
|
|
|
|
|
Total Revenue
Backlog |
$ |
429,309 |
|
$ |
437,161 |
|
$ |
552,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post
2010 |
$ |
428,214 |
|
$ |
433,797 |
|
$ |
526,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
expected timing of recognition of revenue backlog as of December
31, 2016 is as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
2018 |
|
|
2019 |
|
Thereafter |
|
Total |
|
|
Orders executed prior
to January 1, 2011 |
$ |
952 |
|
$ |
143 |
|
$ |
- |
|
$ |
- |
|
$ |
1,095 |
|
|
Orders executed or
materially modified on or |
$ |
136,090 |
|
$ |
43,734 |
|
$ |
23,306 |
|
$ |
21,458 |
|
$ |
224,589 |
|
|
after January 1,
2011 |
|
|
|
|
|
|
|
|
|
|
|
Other Backlog |
$ |
79,808 |
|
$ |
47,135 |
|
$ |
26,808 |
|
$ |
49,874 |
|
$ |
203,625 |
|
|
Total Revenue
Backlog |
$ |
216,850 |
|
$ |
91,012 |
|
$ |
50,114 |
|
$ |
71,332 |
|
$ |
429,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*A
definition of Revenue Backlog is included in the supplemental
financial and operational data sheet available on our investor
relations webpage at ir.avid.com. Note: current estimates
could change based on a number of factors, including (i) the timing
of delivery of products and services, (ii) customer cancellations
or change order, (iii) changes in the estimated period of time
Implied Maintenance Release PCS is provided to customers, including
as a result of changes in business practices. |
|
|
PR Contact:
Sara Griggs
Avid
sara.griggs@avid.com
310-907-6909
Investor Contact:
Robert Roose
Avid
robert.roose@avid.com
Avid Technology (NASDAQ:AVID)
Historical Stock Chart
From Apr 2024 to May 2024
Avid Technology (NASDAQ:AVID)
Historical Stock Chart
From May 2023 to May 2024