Avid to lay off 150; relocating video server engineering to Edmonton and Tewksbury
Changes continue at Avid Technology as the company says it will reduce its workforce by approximately 150 people primarily in the Video business unit. The company will also move video server engineering from Mountain View, CA to existing Avid facilities in Edmonton and Tewksbury, Mass. The changes follow on the heels of the announcement that David Krall is stepping down as president and CEO as of August 1.
Revenues of $225.3 million were reported for the three-month period ended June 30, 2007, compared to $222.2 million for the same period in 2006. GAAP net loss for the quarter was $6.0 million, or $.15 per share, compared to GAAP net income of $2.7 million, or $.06 per diluted share, in the second quarter of 2006.
GAAP net income in the second quarter of 2007 includes $14.2 million of amortization, stock-based compensation, restructuring charges, legal settlements and related tax adjustments. Excluding these items, non-GAAP earnings per diluted share were $.20. For the second quarter of 2006, there was $11.8 million of amortization, stock-based compensation and related tax adjustments included in GAAP net income. Excluding these items, non-GAAP earnings per share were $.34 in the second quarter of 2006.
Avid also announced the appointment of Joel Legon to serve as the company’s vice president and chief financial officer. Since joining Avid in March 2006, Legon had served as vice president and corporate controller. He had additionally served as acting chief financial officer since March 2007.
“I am pleased to report a solid Q2, with revenue and profit that were in line with our expectations,” said David Krall, who will be stepping down as president and chief executive officer on July 31. “Our Video division recognized several large deals out of backlog, including France 24, one of the largest orders in our history. In Audio, which is our most consistent and profitable segment, revenue was flat organically and up 3% year-on-year including revenue generated from Sibelius. In our Consumer segment, lower sales of the TV viewing line in Europe were counterbalanced by strong sales and market share growth of our flagship Studio 11 consumer video editor.”