Avid Announces First Quarter 2010 Results

TEWKSBURY, MA, Apr 22 (MARKET WIRE) --
Avid(R) (NASDAQ: AVID) today reported revenues of $156.0 million for the
three-month period ended March 31, 2010, compared to $151.6 million for
the same period in 2009. The GAAP net loss for the quarter was $13.5
million, or $0.36 per share, compared to a GAAP net loss of $17.3
million, or $0.47 per share, in the first quarter of 2009.

The GAAP net loss for the first quarter of 2010 included amortization of
intangibles, stock-based compensation, restructuring charges,
acquisition-related costs and related tax adjustments, collectively
totaling $8.9 million. Excluding these items, the non-GAAP net loss was
$4.6 million for the first quarter, or $0.12 per share. A reconciliation
of GAAP to non-GAAP results is included in the tables attached to this
release.

The GAAP operating loss for the first quarter was $13.0 million, including
amortization of intangibles, stock-based compensation, restructuring
charges and acquisition-related costs, collectively totaling $9.2 million.
Excluding these items, the non-GAAP operating loss was $3.8 million for
the first quarter. For the first quarter of 2009 the GAAP operating loss
was $20.3 million, including stock-based compensation, amortization of
intangibles and restructuring charges totaling $12.1 million. Excluding
these items, the non-GAAP operating loss was $8.3 million.

"Our year-on-year first quarter revenue increase is a positive sign not
only for the growth of Avid's business, but the industry-at-large," said
Gary Greenfield, chairman and CEO at Avid. "We saw some positive momentum
at NAB and are excited about the possibilities our new products and the
acquisition of Euphonix will play in the future success of our business
and our customers' businesses."

The company's cash balance on March 31, 2010 was $74.2 million, or almost
$2.00 per share.

Use of Non-GAAP Financial Measures

This press release contains "non-GAAP financial measures" under the rules
of the U.S. Securities and Exchange Commission. 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. The reconciliation of the GAAP to non-GAAP
financial measures that we provide is in the tables attached to this
press release.

We consider both GAAP and non-GAAP financial results in managing our
business. Non-GAAP financial measures are used internally, for example, in
establishing annual operating budgets, in assessing operating performance
and for measuring performance under incentive compensation plans. Non-GAAP
financial measures are also used in operating and financial
decision-making because we believe these measures reflect our ongoing
business and allow meaningful period-to-period comparisons. We believe it
is useful for investors and others to review both GAAP and non-GAAP
measures in order to understand and evaluate our current operating
performance and future prospects in the same manner as management, and to
compare in a consistent manner the company's current financial results
with past financial performance. The primary limitations associated with
our use of non-GAAP financial measures are that they may not include all
items of income and expense that affect our operations and that the
non-GAAP financial measures we use may not be directly comparable to
those reported by other companies. For example, the terms used in this
press release, non-GAAP operating net loss and non-GAAP operating loss,
do not have standardized meanings. Other companies may use the same or
similarly named measures, but exclude different items, which may not
provide investors with a comparable view of our performance in relation
to other companies. We seek to compensate for this limitation by
providing a detailed reconciliation of the non-GAAP financial measures to
the most directly comparable GAAP measures in the tables attached to this
press release.

Conference Call

A conference call to discuss Avid's first quarter 2010 financial results
will be held today, April 22, 2010 at 4:30 p.m. ET. The call will be open
to the public and can be accessed by dialing 719.457.2617 and referencing
confirmation code 4569475. The call and subsequent replay will also be
available on Avid's website. To listen via this alternative, go to the
Investors tab at www.avid.com for complete details prior to the start of
the conference call.

Use of Forward-Looking Statements

The above release is subject to the completion and filing of our Quarterly
Report on Form 10-Q. This release includes forward-looking statements, as
defined by the Private Securities Litigation Reform Act of 1995. This
release also makes forward-looking statements about Avid's performance.
There are a number of factors that could cause actual events or results to
differ materially from those indicated by such forward-looking statements,
such as Avid's ability to execute on its corporate strategy and meet
customer needs, general economic conditions, competitive factors, pricing
pressures, delays in product shipments and other important events and
factors disclosed previously and from time to time in Avid's filings with
the U.S. Securities and Exchange Commission. In addition, the
forward-looking statements contained herein represent Avid's estimates
only as of today and should not be relied upon as representing the
company's estimates as of any subsequent date. While Avid may elect to
update these forward-looking statements at some point in the future, Avid
specifically disclaims any obligation to do so, even if the estimates
change.

About Avid

Avid creates the digital audio and video technology used to make the most
listened to, most watched and most loved media in the world -- from the
most prestigious and award-winning feature films, music recordings,
television shows, live concert tours and news broadcasts, to music and
movies made at home. Some of Avid's most influential and pioneering
solutions include Media Composer(R), Pro Tools(R), Avid Unity(TM),
Interplay(R), Oxygen 8, Sibelius(R) and Pinnacle Studio(TM). For more
information about Avid solutions and services, visit www.avid.com,
del.icio.us, Flickr, Twitter and YouTube; connect with Avid on Facebook;
or subscribe to Avid Industry Buzz.

Copyright 2010 Avid Technology, Inc. All rights reserved. Avid, the Avid
Logo, Avid Unity, Interplay, Media Composer, Pinnacle Studio, Pro Tools
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 Interplay Entertainment
Corp., which bears no responsibility for Avid products. All other
trademarks are the property of their respective owners.

AVID TECHNOLOGY, INC.
Condensed Consolidated Statements of Operations
(unaudited - in thousands, except per share data)

Three Months Ended
March 31,
--------------------
2010 2009
--------- ---------
Net revenues:
Products $ 128,679 $ 123,641
Services 27,277 27,988
--------- ---------
Total net revenues 155,956 151,629
--------- ---------

Cost of revenues:
Products 63,269 61,248
Services 14,040 15,839
Amortization of intangible assets 966 520
Restructuring costs - 799
--------- ---------
Total cost of revenues 78,275 78,406

--------- ---------
Gross profit 77,681 73,223
--------- ---------

Operating expenses:
Research and development 30,151 31,051
Marketing and selling 41,746 40,781
General and administrative 14,602 15,113
Amortization of intangible assets 2,857 2,375
Restructuring costs, net 1,340 4,222
--------- ---------
Total operating expenses 90,696 93,542
--------- ---------

Operating loss (13,015) (20,319)

Interest and other income (expense), net - 153
--------- ---------
Loss before income taxes (13,015) (20,166)

Provision for (benefit from) income taxes, net 467 (2,889)
--------- ---------

Net loss $ (13,482) $ (17,277)
========= =========

Net loss per common share - basic and diluted $ (0.36) $ (0.47)
========= =========

Weighted-average common shares outstanding - basic
and diluted 37,516 37,130

AVID TECHNOLOGY, INC.
(unaudited - in thousands, except per share data)

Change in Financial Presentation
Beginning January 1, 2010, we are reporting based on a single reporting
segment. Comparative results for the 2009 period have been updated
to reflect this new business structure.

Reconciliations of GAAP financial measures to Non-GAAP financial measures:

Three Months Ended March 31, 2010
---------------------------------

Gross Operating Operating Tax Net
Profit Expenses Loss Provision Loss
--------- ---------- ---------- ---------- --------
GAAP $ 77,681 $ 90,696 $ (13,015) $ 467 $(13,482)

Amortization of
intangible assets 966 (2,857) 3,823 3,823
Restructuring
costs, net (1,340) 1,340 1,340
Other costs (a) (686) 686 686
Tax adjustment 284 (284)
Stock-based
compensation
included in:
Cost of products
revenues 189 189 189
Cost of services
revenues 253 253 253
Research and
development
expenses (651) 651 651
Marketing and
selling expenses (968) 968 968
General and
administrative
expenses (1,261) 1,261 1,261
--------- ---------- ---------- ---------- --------
Non-GAAP $ 79,089 $ 82,933 $ (3,844) $ 751 $ (4,595)

Weighted-average
shares outstanding
- diluted 37,516

Non-GAAP net loss
per share -
diluted $ (0.12)

(a) Amount represents M&A costs included in general and administrative
expenses.

Three Months Ended March 31, 2009
---------------------------------

Gross Operating Operating Tax Net
Profit Expenses Loss Benefit Loss
--------- ---------- ---------- ---------- --------
GAAP $ 73,223 $ 93,542 $ (20,319) $ (2,889) $(17,277)

Amortization of
intangible assets 520 (2,375) 2,895 2,895
Restructuring
costs, net 799 (4,222) 5,021 5,021
Tax adjustment 354 (354)
Stock-based
compensation
included in:
Cost of products
revenues 350 350 350
Cost of services
revenues 390 390 390
Research and
development
expenses (470) 470 470
Marketing and
selling expenses (821) 821 821
General and
administrative
expenses (2,117) 2,117 2,117
--------- ---------- ---------- ---------- --------
Non-GAAP $ 75,282 $ 83,537 $ (8,255) $ (2,535) $ (5,567)

Weighted-average
shares outstanding
- diluted 37,130

Non-GAAP net loss
per share -
diluted $ (0.15)

Revenue Summary:

Three Months Ended March 31,
---------------------------------
2010 2009
----------- -----------
Video revenues $ 84,353 $ 87,502
Audio revenues 71,603 64,127
----------- -----------
Total net
revenues $ 155,956 $ 151,629
=========== ===========

AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(unaudited - in thousands)

March 31, December 31,
2010 2009
------------- -------------
ASSETS:
Current assets:
Cash, cash equivalents and marketable
securities $ 74,235 $ 108,877
Accounts receivable, net of allowances of
$14,498 and $16,347 at March 31, 2010
and December 31, 2009, respectively 84,257 79,741
Inventories 71,794 77,243
Prepaid and other current assets 32,957 31,075
------------- -------------
Total current assets 263,243 296,936

Property and equipment, net 52,708 37,217
Intangible assets, net 36,585 29,235
Goodwill 230,777 227,195
Other assets 9,640 20,455
------------- -------------
Total assets $ 592,953 $ 611,038
============= =============

LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 33,431 $ 30,230
Accrued expenses and other current
liabilities 69,626 84,100
Deferred revenues 45,621 39,107
------------- -------------
Total current liabilities 148,678 153,437

Long-term liabilities 16,282 14,483
------------- -------------
Total liabilities 164,960 167,920
------------- -------------

Stockholders' equity:
Common stock 423 423
Additional paid-in capital 994,700 992,489
Accumulated deficit (464,048) (444,661)
Treasury stock at cost, net of reissuances (106,099) (112,389)
Accumulated other comprehensive income 3,017 7,256
------------- -------------
Total stockholders' equity 427,993 443,118
------------- -------------
Total liabilities and stockholders'
equity $ 592,953 $ 611,038
============= =============

Contacts:

Press
Christi Dean
978-640-5147
christi.dean@avid.com

Investors
Tom Fitzsimmons
978-640-3346
tom.fitzsimmons@avid.com

Copyright 2010, Market Wire, All rights reserved.

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