Avid 1998 Annual Report Download - page 36

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31
AVID TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) For the Year Ended December 31,
1998 1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($3,633) $26,384 ($38,044)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Charge for acquired in-process research and development, net of tax benefit 20,155
Depreciation and amortization 55,928 25,380 29,641
Compensation from stock grants and options 3,945 2,119
Provision for doubtful accounts 2,018 3,304 6,627
Changes in deferred tax assets (4,412) (617) (18,384)
Tax benefit of stock option exercises 3,829 3,658
Provision for product transition costs and nonrecurring
inventory write-offs, non-cash portion 18,750
Provision for other nonrecurring costs, non-cash portion 7,048
(Gain) loss on disposal of equipment (133) 222 1,410
Changes in operating assets and liabilities, net of effects of acquisition:
Accounts receivable (2,801) (2,215) 13,836
Inventories (2,769) 22,514 14,479
Prepaid expenses and other current assets (2,126) 663 147
Accounts payable 814 (2,940) (3,819)
Income taxes payable 2,404 7,556 (3,206)
Accrued expenses, compensation and benefits 716 23,047 9,107
Deferred revenues (5,700) 2,119 3,356
NET CASH PROVIDED BY OPERATING ACTIVITIES 68,235 111,194 40,948
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment and other assets (15,913) (15,685) (28,219)
Acquisition of business, net of cash acquired (78,416)
Capitalized software development costs (20) (107) (2,295)
Proceeds from disposal of equipment 1,309 2,227 1,550
Purchases of marketable securities (166,580) (147,960) (29,430)
Proceeds from sales of marketable securities 196,317 87,564 58,786
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (63,303) (73,961) 392
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of long-term debt (610) (1,726) (2,000)
Purchase of common stock for treasury (61,822) (28,776)
Proceeds from issuance of common stock 10,901 26,729 3,560
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (51,531) (3,773) 1,560
Effects of exchange rate changes on cash and cash equivalents 1,195 (947) 48
Net increase (decrease) in cash and cash equivalents (45,404) 32,513 42,948
Cash and cash equivalents at beginning of year 108,308 75,795 32,847
Cash and cash equivalents at end of year $62,904 $108,308 $75,795
Non-cash Financing and Investing Activities:
See supplemental cash flow information in Note S
The accompanying notes are an integral part of the consolidated financial statements.