Avid shows year-over-year growth in third quarter

Avid Technology today reported revenues of $231.2 million for the three-month period ended September 30, 2006 compared to $204.4 million for the same period in 2005. GAAP net income for the quarter was $3.6 million, or $.08 per diluted share compared to a GAAP net loss of $17.8 million, or $.46 per diluted share, in the third quarter of 2005. GAAP net income in the third quarter of 2006 includes $14.3 million of non-cash charges including amortization, in-process research and development, stock-based compensation, restructuring and related tax adjustments. This compares to $42 million of non-cash acquisition-related charges including amortization, in-process research and development, stock-based compensation, restructuring costs and related tax adjustments included in the GAAP net loss for the third quarter of 2005.

“Our professional video business had a solid quarter, with record broadcast bookings driving a 23% sequential increase in that segment’s backlog, and healthy demand for our HD-enabled postproduction solutions yielding growth in our post business,” said David Krall, Avid’s president and chief executive officer. “As previously announced, we had a slowdown in demand at quarter-end for Digidesign’s Pro Tools|HD(R) systems. Now that many of the best-selling third-party Pro Tools(R) plug-ins have been ported to the Intel-based Mac platform, we expect Pro Tools|HD demand to improve in Q4. We’ve also addressed the stability issue with Pinnacle Studio(TM) 10, and are now focusing our development efforts on an upcoming release of Pinnacle
Studio for the new Windows Vista operating system.”

Revenues for the nine-month period ended September 30, 2006, were $671.5 million compared to revenues of $530.5 million for the same period in 2005. GAAP net income for the first nine months of 2006 was $9.6 million, or $.22 per diluted share, compared to GAAP net income of $15.6 million, or $.41 per diluted share, for the same period in 2005. GAAP net income for the nine-month period ended September 30, 2006 includes $38.9 million of non-cash amortization, stock-based compensation, restructuring costs, in-process research and development, and related tax adjustments. This compares to $46.8 million of acquisition-related charges including in-process research and development, restructuring costs, stock-based compensation and related tax adjustments included in GAAP net income for the nine-month
period ended September 30, 2005.