Avid reports Q1 loss
Optimistic message from CEO not enough to stop stock drop"We are getting the message out that this is a new Avid," CEO Gary Greenfield told Wall Street analysts Thursday. "We feel we are making good progress."
The next day the stock fell 15%, making it the worst performer on The Hollywood Reporter Showbiz 50 stock index.
The problem was, despite Greenfield's rosy proclamation, the company reported a first-quarter loss of $21.1 million, compared with a profit of $20,000 in the same quarter last year, well before Greenfield's appointment to CEO and chairman six months ago.
Revenue also fell, from $218.9 million last year to $198.3 million this time around, which was far short of Wall Street's prediction of $216 million.
"Strike two," said Canaccord Adams analyst Steven Frankel. "Avid's first-quarter results were ugly."
Even more critical was Barbara Coffey, who penned a report called, "When Directionless, Time is Not a Friend." The Kaufman Bros. analyst has a "sell" rating and $15 target price on the stock, suggesting shares have got another 29% to fall during the year.
Painful. Especially considering that Avid was a $66 stock less than three years ago.