Avid first-quarter revenue forecast misses, shares slip
(Reuters) - Avid Technology Inc AVID.O forecast quarterly revenue that missed analysts' estimates, hurt by weaker demand at one of its business segments, sending the digital audio and video editing software maker's shares down 17 percent after the bell.
Avid has been trimming underperforming products in its creative enthusiasts segment -- which makes software for use by amateur musicians and disc jockeys -- due to a fall in consumer demand.
Revenue at its creative enthusiasts segment fell 30 percent fall, while sales was down modestly in the rest of the business -- the media enterprises and professional and posts segments -- Avid said in a statement.
For the first quarter ended March, the company forecast revenue of $152 million, and an adjusted operating loss of about $8 million.
The company had posted an adjusted operating profit of $900,000 in the year-ago period.
Analysts, on an average, are expecting revenue of $161.1 million, according to Thomson Reuters I/B/E/S.
Shares of Avid, valued at about $394 million, were trading down 16 percent at $8.66 in aftermarket trade. They closed at $10.28 on Wednesday on the Nasdaq.
(Reporting by Chandni Doulatramani in Bangalore; Editing by Sreejiraj Eluvangal, Roshni Menon)