Avid 1997 Annual Report Download - page 51

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44
Q. Quarterly Results (Unaudited)
The following information has been derived from unaudited consolidated financial statements that, in the opinion of
management, include all normal recurring adjustments necessary for a fair presentation of such information.
In thousands, except per share data: Quarters Ended
1997 1996
Dec. 31 Sept. 30 Jun. 30 Mar. 31 Dec. 31 Sept. 30 Jun. 30 Mar. 31
Net revenues $123,735 $116,510 $122,884 $108,209 $113,211 $114,664 $109,095 $92,039
Cost of revenues 54,062 51,606 59,700 56,185 66,266(1) 60,670 59,416 52,456
Gross profit 69,673 64,904 63,184 52,024 46,945 53,994 49,679 39,583
Operating expenses:
Research & development 20,160 18,598 18,296 16,416 17,583 17,569 16,637 17,616
Marketing & selling 31,301 30,109 30,687 28,297 32,182 31,303 33,088 30,433
General & administrative 6,977 6,734 6,294 5,803 5,857 6,767 6,081 5,498
Nonrecurring costs 8,800 20,150
Total operating expenses 58,438 55,441 55,277 50,516 55,622 64,439 55,806 73,697
Operating income (loss) 11,235 9,463 7,907 1,508 (8,677) (10,445) (6,127) (34,114)
Other income, net 2,244 2,596 2,045 1,240 1,596 523 710 587
Income (loss) before income
taxes 13,479 12,059 9,952 2,748 (7,081) (9,922) (5,417) (33,527)
Provision for (benefit from)
income taxes 4,178 3,231 3,483 962 (2,250) (3,164) (1,760) (10,729)
Net income (loss) $9,301 $8,828 $6,469 $1,786 $(4,831) $(6,758) $(3,657) $(22,798)
Net income (loss) per
share - basic $0.39 $0.37 $0.28 $0.08 $(0.23) $(0.32) $(0.17) $(1.08)
Net income (loss) per
share - diluted $0.37 $0.34 $0.27 $0.08 $(0.23) $(0.32) $(0.17) $(1.08)
Weighted average common
shares outstanding - basic 23,601 23,912 23,164 21,550 21,306 21,224 21,104 21,019
Weighted average common
shares outstanding - diluted 25,231 25,747 24,075 21,750 21,306 21,224 21,104 21,019
High common stock price $33.000 $38.000 $28.125 $14.000 $16.375 $20.625 $26.000 $23.125
Low common stock price $23.000 $22.000 $12.375 $9.000 $10.125 $12.375 $17.875 $16.250
(1) Includes a non-cash charge of $5.6 million related principally to spare parts which are no longer required to support the
Company’s business.
Earnings per share data have been restated for all periods presented to reflect the adoption of SFAS No. 128.
The Company's quarterly operating results fluctuate as a result of a number of factors including, without limitation, the
timing of new product introductions, marketing expenditures, promotional programs, and periodic discounting due to
competitive factors. The Company's operating results may fluctuate in the future as a result of these and other factors,
including the Company’s success in developing and introducing new products, its products and customer mix and the level
of competition which it experiences. The Company operates with a relatively small backlog. Quarterly sales and operating
results therefore generally depend on the volume and timing of orders received during the quarter. The Company’s expense
levels are based in part on its forecasts of future revenues. If revenues are below expectations, the Company’s operating
results may be adversely affected. Accordingly, there can be no assurance that the Company will be profitable in any
particular quarter.