Avid 2004 Annual Report Download - page 4

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To our shareholders
In 2004, we delivered solid results each quarter,culminating in record annual revenues of nearly $590
million—an increase of 25% over 2003, our highest annual growth rate since 1995. Our net income
for 2004 was also a record at $71.7 million, or $2.05 per diluted share—up more than 60% from 2003.
These results reflected a period of significant expansion for Avid. We grew organically in our core video
postproduction, broadcast, and audio businesses, and we made strategic acquisitions of audio and digital
asset management businesses that broadened our opportunities in those areas.
In video postproduction, the transition to High Definition (HD) continued to be a business driver for Avid, since
many of our customers have been upgrading their production pipelines to accommodate this technological
shift. In 2004, we transitioned our Avid DNA™product family to HD, with second-generation versions of
our Media Composer®Adrenaline™and Avid Xpress®Prosystems that support a variety of HD formats
and resolutions—and give our customers the ability to select the tool and price point that is best suited for
their needs. We also introduced Avid DNxHD™encoding technology, which enables customers to work at
uncompressed HD image quality using standard-definition file sizes.
In broadcast, we surpassed our goals in 2004, closing the year with more than 100 deals signed, and
bringing to morethan 250 the total number of Avid digital broadcast conversions either under way or
completed. These installations ranged from large, diversified customers—like ABC and Reuters—to
smaller, regional facilities that are converting to Avid end-to-end workflows. Regardless of the size,
complexity,or geographical location of their installations, broadcasters continue to turn to Avid for
our proven leadership in developing solutions that deliver maximum returnon investment.
LEADERSHIP
Avid Executive Team
(Top Row)
Michael J. Rockwell
Vice President and
Chief Technology Officer
Ethan E. Jacks
Vice President of Business Development
and Chief Legal Officer
Charles L. Smith
Vice President and
General Manager, Avid Video
Patricia A. Baker
Vice President of Human Resources
(Bottom Row)
Joseph Bentivegna
Vice President and
Chief Operating Officer, Avid Video
David A. Krall
President and Chief Executive Officer
David M. Lebolt
Vice President and
General Manager, Digidesign
Carol L. Reid
Vice President and Corporate Controller
Paul J. Milbury
Vice President and
Chief Financial Officer