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make manage move | media
™
2005 Annual Report
Avid Technology, Inc.

Table of contents

  • Page 1
    2005 Annual Report Avid Technology, Inc. make manage move | media â„¢

  • Page 2
    ..., corporate video, and government training. Avid's broadcast business had a strong year in 2005, with revenues growing by more than 20% organically. The Pinnacle acquisition added several key new products to this business, further strengthening the end-to-end solutions we offer our customers who...

  • Page 3
    ...enterprise-level customers deploy IT-based media networks in their facilities, Avid Unity ISIS is in the forefront of a new class of solutions that are designed to meet the challenges of complex, networked production in deadline-intensive environments. In our 3D animation and computer graphics group...

  • Page 4
    ... Chief Operating Officer, Avid Video Michael J. Rockwell Vice President and Chief Technology Officer Sharad Rastogi Vice President of Corporate Development Timothy D. Ryan Vice President and General Manager, M-Audio front row: David A. Krall President and Chief Executive Officer David M. Lebolt Vice...

  • Page 5
    ... Operations (In thousands, except per share and employee data) Year ended December 31, 2005 2004 2003 Net revenues $775,443 $589,605 $471,912 Avid's impressive revenue growth over the past five years has resulted from organic development and strategic acquisitions. 2001 $434.6 2002 $775.4 $589...

  • Page 6
    ...growth is fueled in large part by the vast increase in sales of HD-enabled television sets, and the rise in HDTV programming to the home. The National Cable & Telecommunications Association (NCTA) estimates that, by the end of 2005, 87% of U.S. homes had access to HDTV service, and up to 5,000 hours...

  • Page 7
    ... are focused on building small businesses around affordable, easy-to-use editing tools for applications such as wedding and event videography, corporate video, and government training. These individual videographers spend an estimated $200 million on digital editing tools, and Avid is in a stronger...

  • Page 8
    ... on-air graphics systems that we acquired through our 2005 purchase of Pinnacle Systems, Inc. The addition of these products - which include the Deko® and Thunder® families - allows us to target broadcast customers with an increasingly rich set of integrated tools that meet their growing needs...

  • Page 9
    ...growth opportunity for Avid. As our customers move further into the digital world, they are demanding network solutions that link their digital media assets with other business functions, and Avid is helping them achieve this goal with increasingly sophisticated media management tools. 3D Animation...

  • Page 10
    ... technology evolves. ® " - George Massenburg, Grammy award-winning producer/engineer/developer, designer and innovator (Blackbird Studio C), and Digidesign development partner. AUDIO Professional Audio For Avid's audio division, Digidesign, the prevailing trend at the high end of the market...

  • Page 11
    ...which rely on software to create new instrument sounds within the Pro Tools application. To capture a growing opportunity in virtual instrument technology, Digidesign acquired a leading developer of softwarebased synthesizers in 2005 and formed the Advanced Instrument Research (AIR) group. The first...

  • Page 12
    ... applications such as Avid's Pinnacle Studio grows accordingly. A recent study by consumer research firm NPD Group showed that the market for consumer video editing software in the U.S. grew by 16% in 2005 - and that sales of Pinnacle Studio grew by 29%, increasing Avid's domestic market share...

  • Page 13
    ... careers in digital media industries, a key component of Avid's business strategy is to provide students and educators with a full range of industrystandard solutions at special education price points. Because Avid tools are used by professionals in the film, video, television, broadcast, audio, and...

  • Page 14
    ...growth of home audio studios, the move to digital mixing, or the explosion of consumer video editing and consumption, we will address market demands with innovative and compelling offerings. There has never been a more exciting time to be in the digital media business, and we believe that Avid is in...

  • Page 15
    ... of incorporation or organization) Avid Technology Park, One Park West, Tewksbury, MA (Address of principal executive offices) 04-2977748 (I.R.S. Employer Identification No.) 01876 (Zip Code) to (978) 640-6789 (Registrant's telephone number, including area code) Securities Registered Pursuant to...

  • Page 16
    ... limitation, those set forth in Item 1A "Risk Factors". PART I ITEM 1. OVERVIEW We develop, market, sell and support a wide range of software and hardware products for digital media production, management and distribution. Digital media are video, audio or graphic elements in which an image or sound...

  • Page 17
    ...-generated special effects tools. Our business is currently organized and operated to sell our products and services in three reportable segments: Professional Film, Video and Broadcast; Audio; and Consumer Video. Our Professional Film, Video and Broadcast, or Professional Video, segment markets to...

  • Page 18
    ... files are similar to SD files, the quality of the original HD image is preserved. The source code for Avid DNxHD technology is licensable free of charge on our Web site, enabling users to compile it on any platform. Deliver Excellent Customer Service, Support and Training. In order to succeed...

  • Page 19
    ... editing software and hardware offerings aimed at the event videography and corporate markets, which we obtained as part of our 2005 acquisition of Pinnacle. These products contain an integrated feature set that includes SD and HD video editing, surround audio editing, real-time video effects...

  • Page 20
    ...Studio, our digital asset management software for entertainment and computer graphics professionals; and SOFTIMAGE|FACE ROBOT, our newest tool for creating realistic facial animations, which we plan to release in 2006. Avid Assurance Support Avid Assurance is our annual maintenance support offering...

  • Page 21
    ... high-end, expandable hardware control surfaces for tactile control of Pro Tools software and hardware. ICON systems can be customized to fit any studio, providing from 16 to 80 channels of simultaneous control. Live Sound Mixing Consoles In February 2005, we began shipping the VENUE product line...

  • Page 22
    ... or music video; surround sound (on multi-channel systems); and the ability for users to add third-party plug-ins to further advance the capabilities of the program. Studio Plus, the product designed for advanced home video editors, also has HD capabilities. In addition to selling Studio as a stand...

  • Page 23
    ...-site assistance, hardware replacement and extended warranty and software upgrades. Customer training is available directly from us or through certified third-party Avid training centers around the world. Total service offerings represented 11%, 10% and 10% of our consolidated net revenues in 2005...

  • Page 24
    ...). In digital asset management, the Alienbrain product family - which Avid acquired in January 2004 from NXN Software GmbH - is focused primarily on animation, electronic graphics and video gaming markets where it competes primarily with Perforce Software, Inc. and also with offerings from Microsoft...

  • Page 25
    ...managing an increased number of employees over large geographic distances, including the need to develop appropriate systems, policies, benefits and compliance programs. The inability to manage the organization of the combined company effectively could have a material adverse effect on our business...

  • Page 26
    ... devote significant sales, engineering, manufacturing, installation and support resources to ensure their successful and timely fulfillment. As the broadcast business converts from analog to digital, our strategy has been to build our broadcast solutions team in response to customer demand. To the...

  • Page 27
    ...As part of our business strategy, we periodically acquire companies, technologies and products that we believe can improve our ability to compete in our core markets or allow us to enter new markets. For example, in August 2005, we acquired Pinnacle and in August 2004, we acquired M-Audio. The risks...

  • Page 28
    ... and sold to end users and software that is integrated with internally developed software and used in our products to perform key functions. These third-party software licenses may not continue to be available on commercially reasonable terms and the software may not be appropriately supported...

  • Page 29
    ... pressure on product prices; costs incurred in connection with our broadcast and some of our audio solution sales, which typically have longer selling and implementation cycles; timing of delivery of solutions to customers; and foreign currency exchange impact on our revenues. Changes in any...

  • Page 30
    ...from sales of Audio and Consumer Video products is generally derived, however, from transactions with distributors and authorized resellers that typically allow limited rights of return, inventory stock rotation and price protection. Accordingly, reserves for estimated returns, exchanges and credits...

  • Page 31
    ... the intellectual property rights of others. We rely upon a combination of patent, copyright, trademark and trade secret laws, confidentiality procedures and contractual provisions, as well as required hardware components and security keys, to protect our proprietary technology. However, our means...

  • Page 32
    ... distributors, resellers, system integrators or customers; announcements of major acquisitions; a shift in financial markets; and global macroeconomic conditions. Furthermore, the market prices of equity securities of high technology companies have generally demonstrated volatility in recent years...

  • Page 33
    ... a portion of this space to an unrelated company. This sublease has been extended and expires in 2007. We lease office space in Daly City, California for our Audio segment headquarters, including its administrative, sales and marketing, and research and development activities, and in Mountain View...

  • Page 34
    ... for Access Technology, Inc., a developer of application software. JEFFREY HASTINGS. Mr. Hastings has served as Vice President and General Manager, Consumer since August 2005. Previously, he served as Chief Operating Officer for M-Audio, a company we acquired in 2004 and now a business division...

  • Page 35
    ...as Vice President of Corporate Development since August 2005. From January 2004 until August 2005 he was Vice President of Strategic Planning and New Business Development. Prior to joining Avid, Mr. Rastogi was a Vice President and Partner at the management consulting firm Bain & Company, Inc. from...

  • Page 36
    ...February 14, 2006, the last reported sale price of the Nasdaq National Market for our common stock was $47.77 per share. The approximate number of holders of record of our common stock at February 14, 2006 was 471. This number does not include shareholders for whom shares were held in a "nominee" or...

  • Page 37
    ... OF OPERATIONS DATA: In thousands (except per share data) 2005 Net revenues Cost of revenues Gross profit Operating expenses: Research and development Marketing and selling General and administrative In-process research and development Restructuring and other costs, net Amortization of intangible...

  • Page 38
    ... EXECUTIVE OVERVIEW OUR MARKETS AND STRATEGY Our mission is to serve the industries that "Make, Manage and Move Media." 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...

  • Page 39
    ... of net revenues for the periods indicated: For the Year Ended December 31, 2005 Product revenues Services revenues Cost of revenues Gross profit Operating expenses: Research and development Marketing and selling General and administrative In-process research and development Restructuring and...

  • Page 40
    ... and Allowances for Product Returns and Exchanges We generally recognize revenue from sales of software and software-related products upon receipt of a signed purchase order or contract and product shipment to distributors or end users, provided that collection is reasonably assured, the fee is...

  • Page 41
    ... terms relating to the upgrade have been satisfied. In 2005, approximately 70% of our revenue was derived from indirect sales channels, including authorized resellers and distributors. Within our Professional Video segment, our resellers and distributors are generally not granted rights to return...

  • Page 42
    ...cant losses from defaults to date under this program, deterioration in the financial condition of our customers who participate in the program could require additional reserves. Inventories Inventory in the digital media market, including our inventory, is subject to rapid technological change or...

  • Page 43
    ... acquisitions of M-Audio, NXN and Avid Nordic over the past two years, we have increased the overall scope of our operations in Europe to include not only sales but also research and development, manufacturing, customer service and other functions, and our general and administrative infrastructure...

  • Page 44
    ... Revenues We develop, market, sell and support a wide range of software and hardware for digital media production, management and distribution. Our net revenues are derived mainly from the sales of computer-based digital, nonlinear media editing systems and related peripherals, licensing of software...

  • Page 45
    ..., testing and distribution of finished products; warehousing; post-sales customer support costs related to maintenance contract revenue and other services; and royalties for third-party software and hardware included in our products. It also includes the amortization of developed technology assets...

  • Page 46
    ... sales of aftermarket hardware products such as disk drives and currency exchange rate ï¬,uctuations, and the timing and specific technology acquired through our acquisitions. The following is a summary of our cost of revenues and gross margin percentages comparing the years ended December 31, 2005...

  • Page 47
    ...as higher facilities costs, all in large part due to the acquisitions of Pinnacle in August 2005 and M-Audio and Avid Nordic in the third quarter of 2004. We also spent more on advertising, trade shows and other marketing programs during 2005 than in 2004. Years Ended December 31, 2004 and 2003 2004...

  • Page 48
    ... of the purchase price to in-process R&D were determined through management's consideration of valuations prepared by independent valuation specialists and represent product development efforts that were underway at Pinnacle or Wizoo at the time of acquisition for which technological feasibility had...

  • Page 49
    ... management's consideration of a valuation of Pinnacle's intangible assets prepared by an independent valuation specialist. As part of the purchase accounting allocation, we recorded $90.8 million of identifiable intangible assets, consisting of completed technologies, customer relationships...

  • Page 50
    ... 2005 acquisition of Wizoo, we recorded $1.2 million to identifiable intangible assets, including developed technology and license agreements. The unamortized balance of the identifiable intangible assets relating to this acquisition was $1.1 million at December 31, 2005. As part of the purchase...

  • Page 51
    ... net revenues ($1,612) (0.3%) 2003 $550 0.1% Change ($2,162) (0.4%) Our effective tax rate was 20%, (2)% and 1%, respectively, for 2005, 2004 and 2003. Excluding the impact of acquired net operating loss carryforwards, in-process research and development and the decrease in the valuation allowance...

  • Page 52
    ... 2004 and $8.0 million in 2003. Purchases of property and equipment in both 2005 and 2004 were primarily of computer hardware and software to support research and development activities and our information systems. Our capital spending program for 2006 is currently expected to be approximately $22...

  • Page 53
    ... cases, amounts of unpaid balances. As of December 31, 2005, our maximum exposure under this program was $13.0 million. We have a stand-by letter of credit at a bank that is used as a security deposit in connection with our Daly City, California office space lease. In the event of a default on this...

  • Page 54
    ... for the pro forma impact on net income and net income per common share as if we had historically applied the fair value recognition provisions of SFAS No. 123 to stock-based employee awards. On June 7, 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error Corrections", a replacement of...

  • Page 55
    ...Currency Exchange Risk We derive more than half of our revenues from customers outside the United States. This business is, for the most part, transacted through international subsidiaries and generally in the currency of the end-user customers. Therefore, we are exposed to the risks that changes in...

  • Page 56
    Interest Rate Risk At December 31, 2005, we held $238.4 million in cash, cash equivalents and marketable securities, including short-term corporate obligations, asset-backed securities, commercial paper and U.S. and Canadian government and government agency obligations. Marketable securities are ...

  • Page 57
    AVID TECHNOLOGY, INC. ANNUAL REPORT ON FORM 10-K YEAR ENDED DECEMBER 31, 2005 ITEM 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY FINANCIAL INFORMATION 43

  • Page 58
    ... CONSOLIDATED FINANCIAL STATEMENTS INCLUDED IN ITEM 8: Management's Report on Internal Control Over Financial Reporting ...Report of Independent Registered Public Accounting Firm ...Consolidated Statements of Operations for the years ended December 31, 2005, 2004 and 2003 ...Consolidated Balance...

  • Page 59
    ... Pinnacle Systems Inc. (Pinnacle) and its subsidiaries because Pinnacle was acquired by the Company in a purchase business combination during 2005. Pinnacle and its subsidiaries represented 38% and 12% of the Company's total assets and total revenues, respectively, as of and for the year ended...

  • Page 60
    ... with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reï¬,ect the transactions and dispositions of the assets of...

  • Page 61
    ... in "Management's Report on Internal Control Over Financial Reporting," management has excluded Pinnacle Systems, Inc. and its subsidiaries from its assessment of internal control over financial reporting as of December 31, 2005 because the entity was acquired by the Company in a purchase business...

  • Page 62
    ... per share data) For the Year Ended December 31, 2004 2003 2005 Net revenues: Product Services Total net revenues Cost of revenues: Product Services Amortization of intangible assets Total cost of revenues Gross profit Operating expenses: Research and development Marketing and selling General and...

  • Page 63
    ...Marketable securities Accounts receivable, net of allowances of $22,233 and $9,334 at December 31, 2005 and 2004, respectively Inventories Current deferred tax assets, net Prepaid expenses Other current assets Total current assets Property and equipment, net Intangible assets, net Goodwill Long-term...

  • Page 64
    ...: Net income Net change in unrealized gain (loss) on marketable securities Translation adjustment Other comprehensive income Comprehensive income Balances at December 31, 2003 Stock issued pursuant to employee stock plans Issuance of common stock in connection with acquisition Issuance of restricted...

  • Page 65
    ...-term assets Dividend from non-consolidated company Payments for business acquisitions, net of cash acquired Cash received in business acquisitions, net of cash paid Purchases of marketable securities Proceeds from sales and maturities of marketable securities NET CASH USED IN INVESTING ACTIVITIES...

  • Page 66
    ... Technology, Inc. ("Avid" or the "Company") develops, markets, sells and supports 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 as digital...

  • Page 67
    ... which consists primarily of customer relationships and completed technology, result from the Company's acquisitions of the following companies or their assets: Pinnacle, Wizoo, M-Audio, NXN Software, Avid Nordic AB, iKnowledge, Rocket Network, Inc. and Bomb Factory Digital, Inc. (see Note F), which...

  • Page 68
    ... Allowance for Doubtful Accounts The Company generally recognizes revenue from sales of software and software-related products upon receipt of a signed purchase order or contract and product shipment to distributors or end users, provided that collection is reasonably assured, the fee is fixed or...

  • Page 69
    ...the Company's Professional Video segment, resellers and distributors are generally not granted rights to return products to us after purchase and actual product returns from them have been insignificant to date. However, distributors of the Avid Xpress DV, Avid Xpress Pro, Avid Mojo and Avid Liquid...

  • Page 70
    ... Video segment. Under this program, participating resellers can earn reimbursement credits of up to 1% of qualified purchases from Avid. Consideration given to these resellers is included in selling and marketing expense in accordance with EITF Issue 01-09, as the Company receives an identifiable...

  • Page 71
    ... illustrates the effect on net income and earnings per share if the Company had applied the fair value recognition provisions of SFAS No. 123 to stock-based employee awards. See Note J for additional disclosure. For the Year Ended December 31, (in thousands, except per share data) 2005 2004 2003...

  • Page 72
    ...the pro forma impact on net income and net income per common share as if the Company had historically applied the fair value recognition provisions of SFAS No. 123 to stock-based employee awards. On June 7, 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error Corrections", a replacement...

  • Page 73
    ... not available to Avid in 2005 due to the fact that the Company incurred a loss for U.S. tax purposes. The qualified production activities deduction is not available to companies that incur a loss for the taxable year. C. MARKETABLE SECURITIES The cost (amortized cost of debt instruments) and fair...

  • Page 74
    ... 9, 2005, Avid completed the acquisition of California-based Pinnacle Systems, Inc., a supplier of digital video products to customers ranging from individuals to broadcasters. Under the terms of the agreement, Pinnacle common shareholders received 0.0869 of a share of Avid common stock plus $1.00...

  • Page 75
    ... and marketable securities Accounts receivable, net Inventories Other current assets Property and equipment and other long-term assets Identifiable intangible assets: Customer relationships Trade names Developed technology In-process research and development Goodwill Total assets acquired Accounts...

  • Page 76
    ... shares or options were due and, thus, no amount has been recorded as additional purchase price. The identifiable intangible assets are being amortized over their estimated useful lives of twelve years for customer relationships, six years for the trade name, four years for the developed technology...

  • Page 77
    ... 31, 2005. During the year ended December 31, 2004, the goodwill was increased by $0.4 million to $2.4 million due to a reduction in the estimated fair value of inventory and other current assets acquired from Avid Nordic AB. As part of the purchase agreement, Avid was required to make additional...

  • Page 78
    ... revenues Net income (loss) Net income (loss) per share: Basic Diluted $903,453 $19,098 2004 $936,211 ($15,894) $0.46 $0.44 ($0.39) ($0.39) Included in the pro forma net income reported above for the year ended December 31, 2004 is a charge of $32.3 million for inprocess research and development...

  • Page 79
    ... tax credit carryforwards and $100.4 million in Pinnacle net operating loss carryforwards, both of which are subject to limitation under Section 382 change of ownership rules of the U.S. Internal Revenue Code of 1986, as amended. Based on the level of the deferred tax assets as of December 31, 2005...

  • Page 80
    ... 2005 35% (2) (5) 3 1 2004 35% (3) (6) 2 2003 35% (3) (8) 2 - Statutory rate Tax credits Foreign operations State taxes, net of federal benefit Other Effective tax rate before valuation allowance and other items Acquired net operating loss carryforwards In process research and development Increase...

  • Page 81
    ... lease terms and do not include these penalties. The Company has a standby letter of credit at a bank that is used as a security deposit in connection with the Company's Daly City, California office space lease. In the event of default on this lease, the landlord would, as of December 31, 2005, be...

  • Page 82
    ... generally mirrors the manufacturers' warranties. The Company charges the related material, labor and freight expense to cost of revenues in the period incurred. With respect to the Audio and Consumer Video segments, Avid provides warranties on externally sourced and internally developed hardware...

  • Page 83
    ...Company's 1996 Employee Stock Purchase Plan, as amended through May 25, 2003, authorizes the issuance of a maximum of 1,700,000 shares of common stock in quarterly offerings to employees at a price equal to 95% of the closing price on the applicable offering termination date. As of December 31, 2005...

  • Page 84
    ... to four years for employees and immediately to four years for officers and directors. The options have a maximum term of ten years. As of December 31, 2005, a maximum of 18,218,612 shares of common stock have been authorized for issuance under the Company's stock-based compensation plans, of which...

  • Page 85
    ... from the Stock Purchase Plan. K. EMPLOYEE BENEFIT PLANS Employee Benefit Plans The Company has a defined contribution employee benefit plan under section 401(k) of the Internal Revenue Code covering substantially all U.S. employees. The 401(k) plan allows employees to make contributions up...

  • Page 86
    ... program under which 48 employees worldwide were terminated, and a leased facility in California was vacated. In connection with these actions, the Company recorded a charge of $1.2 million for employee terminations and $0.6 million for abandoned space in Santa Monica that included a write...

  • Page 87
    ...enable users to simultaneously share and manage media assets throughout a project or organization. This product family accounted for 10%, 12% and 12% of the Company's consolidated net revenues in 2005, 2004 and 2003, respectively. The Audio segment produces digital audio systems for the audio market...

  • Page 88
    ... the years ended December 31, 2005, 2004 and 2003 (in thousands): 2005 2004 2003 Total operating income for reportable segments Unallocated amounts: Restructuring and other costs, net Stock-based compensation In-process research and development Amortization of acquisition-related intangible assets...

  • Page 89
    ...contracts intended to offset foreign currency exchange risk on forecasted cash ï¬,ows are recorded as gains or losses in the Company's statement of operations in the period of change, because they do not meet the criterion of SFAS No.133, "Accounting for Derivative Instruments and Hedging Activities...

  • Page 90
    ... activities related to the acquisitions of Pinnacle and Wizoo in 2005, NXN, M-Audio and Avid Nordic AB in 2004, and Rocket Network, Inc. and Bomb Factory Digital, Inc. in 2003 (in thousands): Year Ended December 31, 2005 Fair value of: Assets acquired and goodwill Acquired incomplete technology...

  • Page 91
    ... including, without limitation, the timing of new product introductions, the timing of, and costs incurred in association with, the recognition of "solutions" sales to customers, marketing expenditures, promotional programs and periodic discounting due to competitive factors. The Company's operating...

  • Page 92
    ... Company from the date of acquisition through December 31, 2005 and considers the internal controls and procedures of Pinnacle to have a material effect on our internal control over financial reporting. We are currently executing an extension of our Sarbanes-Oxley Act Section 404 compliance program...

  • Page 93
    ... of our Code of Business Conduct and Ethics upon written request to Avid Technology, Inc., Avid Technology Park, One Park West, Tewksbury, MA 01876, Attention: Corporate Secretary. The remainder of the response to this item is contained under the caption "EXECUTIVE OFFICERS OF THE COMPANY" in Part...

  • Page 94
    ... financial statements are included in Item 8: (a) 2. Management's Report on Internal Control Over Financial Reporting Report of Independent Registered Public Accounting Firm Consolidated Statements of Operations for the years ended December 31, 2005, 2004 and 2003 Consolidated Balance Sheets as of...

  • Page 95
    ... with the Commission on April 29, 2005). #10.16 Avid Technology, Inc. 2006 Bonus Plan. (incorporated by reference to our Current Report on Form 8-K as filed with the Commission on December 13, 2005). #10.17 Executive Employment Agreement between the Company and David A. Krall, dated as of July 24...

  • Page 96
    ...10.30 Change-in-Control Agreement between the Company and Charles L. Smith, dated as of July 24, 2002 (incorporated by reference to our Quarterly Report on Form 10-Q as filed with the Commission on November 13, 2002). #10.31 Form of Nonstatutory Stock Option Grant Terms and Conditions (incorporated...

  • Page 97
    ... of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AVID TECHNOLOGY, INC. (Registrant) By: /s/ David A. Krall David A. Krall President and Chief Executive Officer (Principal Executive Officer...

  • Page 98
    ... and foreign exchange gains (losses). (b) Amount represents write-offs, net of recoveries. (c) Includes approximately $12.0 million recorded in purchase accounting for accounts receivable acquired in business combinations. The remaining portion is for provisions for sales returns and volume...

  • Page 99
    ...and Move Media, make manage move|media, M-Audio, Mbox, Media Composer, MediaDock, MEDIArray, MediaStream, NewsCutter, Nitris, Pinnacle Studio, Pinnacle Systems, ProEncode, Pro Tools, Pro Tools LE, SOFTIMAGE, Symphony, Thunder, and XSI are either registered trademarks or trademarks of Avid Technology...

  • Page 100
    www.avid.com Avid Technology, Inc. 2005 make manage move | media â„¢