UPDATE 1-Avid to sell certain products, cut jobs

Mon Jul 2, 2012 10:20am EDT

* Company to sell audio products line to inMusic

* Corel to buy Avid Studio, other video editing products

* Avid to receive $17 mln in proceeds from the sales

* Avid plans to cut workforce by 20 pct

July 2 (Reuters) - Avid Technology Inc said it will sell some of its audio and video editing products and plans to reduce its workforce by 20 percent, to cut costs and focus on core markets.

The company said it will sell a range of audio products, including M-Audio brand keyboards, controllers, speakers and digital DJ equipment, to inMusic.

Avid is also selling some video editing products, including Avid Studio and a related app for Apple's iPad, to Corel Corp.

The company expects to receive about $17 million from the sales. The two product lines contributed about $91 million to Avid's 2011 revenue of $677 million.

While certain employees will transfer to inMusic and Corel as part of the deals, the company also plans to cut jobs, Avid said.

The divestures and layoffs will result in a 20 percent reduction in the company's workforce. The company has 1787 employees, according to Thomson Reuters data.

The company expects a restructuring charge of about $19 million to $23 million related to headcount reductions.

Avid shares were down a little more than 1 percent at $7.34 on Monday on the Nasdaq.