Avid Reports Expanded Loss in 2nd Quarter
The tech company cites the impact of its July 2 divestiture of consumer audio and video product lines.
Avid Technology, best known in Hollywood as the maker of the Media Composer nonlinear editing system and ProTools audio post system, on Monday announced a wider net loss for its second quarter.
Avid lost $39 million in the period that ended June 30, compared with a net loss of $11.1 million in the 2011 quarter. The company also reported revenue of $157.4 million, down 2.7 percent.
Some of the loss was attributed to the July 2 divestiture of Avid’s consumer audio and video business and related restructuring, which Avid chairman and CEO Gary Greenfield said would allow the Burlington, Mass.-based company to move away from “low growth, low margin” technology to focus more on its media enterprise and post and professional markets.
He reported that excluding revenue from the divested product lines, Avid had “5 percent year-on-year revenue growth for our ongoing business” during the quarter.
“This performance reinforced the strategic direction we took earlier this month, and we are excited about our prospects for the second half of the year,” he said.
The products involved in the transactions include Avid Studio, Pinnacle Studio, the Avid Studio App for the Apple iPad and M-Audio brand products. With the sales, Avid reduced its work force by about 20 percent to roughly 1,425 employees.
Shares of Avid fell 3.6 percent to $7.57 on Monday, then fell another 4 percent in after-hours trading follow the earnings announcement.