Avid 2004 Annual Report Download - page 16

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2
This Annual Report on Form 10-K contains a number of forward-looking statements. Any statements contained
herein (including without limitation statements to the effect that Avid Technology, Inc. (“We”, the “Company” or “Avid”)
or our management “believes”, “expects”, “anticipates”, “plans” and similar expressions) that are not statements of
historical fact should be considered forward-looking statements. There are a number of important factors that could cause
our actual results to differ materially from those indicated by such forward-looking statements. These factors include,
without limitation, those set forth in “Certain Factors That May Affect Future Results.”
PART I
ITEM 1. BUSINESS
OVERVIEW
We develop, market, sell and support a wide range of software and hardware for digital media production,
management and distribution. Digital media are video, audio or graphic elements in which the image, sound or picture is
recorded and stored in digital values, as opposed to analog, or tape-based, signals. Our diverse range of product and service
offerings enables customers to “Make, Manage and Move Media.”
Make Media. Our Video and Film Editing and Effects (“Video”) segment offers digital, non-linear video and film
editing systems and 3D and special-effects software that enable users to manipulate moving pictures and sound in a faster,
easier, more creative, and more cost-effective manner than using traditional analog tape-based systems. Non-linear systems
allow editors to access material instantaneously rather than requiring them to work sequentially. Our Audio segment offers
digital audio software applications and hardware systems for music, film, television, video, broadcast, streaming media, and
web development. These systems are based upon proprietary audio hardware, software, and control surfaces, and allow
users to record, edit, mix, process, and master audio in an integrated manner.
Manage Media. We provide complete network, storage, and database solutions based on our Avid Unity
MediaNetwork technology. This technology enables users to simultaneously share and manage media assets throughout a
project or organization. The ability to effectively manage digital media assets is a critical component of success for many
broadcast and media companies with multiple nonlinear editing workstations in a range of geographic locations. As a result,
professionals can collaborate seamlessly on all production elements, and streamline the process for cost-effectively
delivering compelling media experiences and quickly “re-purposing” or finding new uses or markets for media assets.
Move Media. We offer products that allow our customers to distribute media over multiple platforms - including
air, cable or satellite, or through the Internet. In addition, we provide technology for playback directly to air for broadcast
television applications. Many of our products also support the broadcast of streaming Internet video.
Our products are used worldwide in production and post-production facilities; film studios; network, affiliate,
independent and cable television stations; recording studios; advertising agencies; government and educational institutions;
corporate communication departments; and game developers and Internet professionals. Projects produced by our
customers using our products have been honored with Oscar®, Emmy®, and Grammy® awards, as well as a host of other
international awards. In addition, we have also received numerous awards for technical innovations, including Oscars,
Emmys and a Grammy. (Oscar is a registered trademark and service mark of the Academy of Motion Picture Arts and
Sciences. Emmy is a registered trademark of ATAS/NATAS. Grammy is a registered trademark of The National Academy
of Recording Arts and Sciences, Inc.)
RECENT ACQUISITIONS
In September 2004, we acquired Avid Nordic AB, a Sweden-based reseller of Avid products operating in the
Nordic and Belgium/Netherlands/Luxembourg regions of Europe. We previously had no ownership interest in Avid
Nordic. The acquisition allows Avid to serve customers directly in this region.
In August 2004, we acquired California based Midiman, Inc. (d/b/a M-Audio), a leading provider of digital audio
and MIDI (Music Industry Digital Interface) solutions for electronic musicians and audio professionals. We have integrated
M-Audio into our Audio segment and will market M-Audio’s line of audio products alongside Digidesign's digital audio
workstations. M-Audio’s consumer product line, including peripherals, keyboards, speakers and sound libraries, is a
complement to Digidesign’s professional and home audio solutions.