Avid 1998 Annual Report Download - page 54

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49
realization. If any benefit of these unrecorded tax credits and carryforwards is realized in the future, the non-current assets
recorded upon the acquisition will be reduced at that time by a corresponding amount, before any benefit is recognized in
the statement of operations.
Accumulated amortization associated with identifiable intangible assets was approximately $16.5 million at December 31,
1998; accumulated amortization associated with goodwill was approximately $17.7 million at December 31, 1998. During
the year ended December 31, 1998, the Purchase Consideration recorded for the value of Avid Options was reduced by
approximately $7.7 million, resulting from increases to the Note of approximately $5.2 million for forfeited options and by
increases to additional paid-in capital of approximately $2.5 million for options which became vested.
The following table presents unaudited pro forma information as if Avid and Softimage had been combined as of the
beginning of the periods presented. The pro forma data are presented for illustrative purposes only and are not necessarily
indicative of the combined financial position or results of operations of future periods or the results that actually would have
resulted had Avid and Softimage been a combined company during the specified periods. The pro forma results include the
effects of the purchase price allocation from amortization of acquisition-related intangible assets and exclude the charge for
the purchased in-process technology and related tax benefit.
Pro Forma Unaudited
(in thousands, except per share amounts)
For the Year Ended December 31,
1998 1997
Net revenue $505,382 $508,153
Net income (loss) ($22,329) ($43,102)
Net income (loss) per common share - basic ($0.89) ($1.69)
Net income (loss) per common share - diluted ($0.89) ($1.69)
Weighted average common shares outstanding - basic 25,071 25,501
Weighted average common shares outstanding - diluted 25,071 25,501
P. NET INCOME (LOSS) PER SHARE
The following table reconciles the numerator and denominator of the basic and diluted earnings per share computations
shown on the consolidated statements of operations:
For the Years Ended December 31,
(In thousands, except per share data) 1998 1997 1996
Basic EPS
Numerator:
Net income (loss) ($3,633) $26,384 ($38,044)
Denominator:
Weighted common shares outstanding 23,644 23,065 21,163
Basic EPS ($0.15) $1.14 ($1.80)
Diluted EPS
Numerator:
Net income (loss) ($3,633) $26,384 ($38,044)
Denominator:
Weighted common shares outstanding 23,644 23,065 21,163