| Avid Technology Sees Lower Profits
TEWKSBURY, Mass. (Reuter) - Avid Technology Inc., a leader in the digital
video industry, says fourth quarter profits will decline from the third
quarter.
It also said it expected its revenues for the fourth quarter to be at or
lower than in the prior quarter.
It said it expected gross margins of about 50 percent and expected operating
expenses to be more than it incurred in the third quarter, resulting in the
profit downturn.
Avid earned $8.75 million, or 43 cents per share, on revenues of $114 million
in the third quarter of 1995. In the fourth quarter of 1994, Avid earned
$4.8 million, or 40 cents per share, on revenues of $67 million.
Curt Rawley, the company's president and chief executive officer, said
while ``our business remains fundamentally sound,'' revenues this quarter
have been affected primarily by lower-than-anticipated sales of high-end
broadcast products.
He also said some customers deferred decisions to buy post production and
audio products and that the company had lower-than-expected sales of
recently introduced desktop products.
The company said it intended to release its fourth quarter and audited 1995
results by Feb. 6.
Stock in Tewksbury, Mass.-based Avid closed down $1.375 at $29.625 on the
Nasdaq market, before the news was released.
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| Thursday December 21 5:59 PM EST
Avid Stock Plunges on Profit Drop Warning
TEWKSBURY, Mass. (Reuter) - The stock of Avid Technology Inc., which makes
digital video and audio editing systems, plunged in heavy trading Thursday,
a day after the company said it expected disappointing fourth-quarter results.
The stock fell 10 5/8 to 19 on Nasdaq, where it was the most active issue.
Avid, based in Tewksbury, Mass., said Wednesday it expected profits for the
quarter ending Dec. 31 to be lower than in the prior quarter.
It forecast unchanged or lower revenues, but higher operating expenses.
In the third quarter, Avid made profits of $8.75 million on revenues of
$114 million, with operating expenses of $445 million.
Avid said revenues were hurt mostly by lower-than-expected sales of
high-end broadcast products, decisions by customers to delay the purchase
of some post production and audio products and surprisingly low sales of
recently introduced desktop products.
The company said it expects to release fourth quarter and audited results
by Feb. 6.
Earlier Related Stories
Avid Technology Sees Lower Profits (Thu Dec 21 6:51 AM)
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| Perhaps it's the relatively early hour, but I don't understand "In the
third quarter, Avid made profits of $8.75 million on revenues of $114
million, with operating expenses of $445 million. "
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