Avid 2005 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 Item 1A
“Risk Factors”.
PART I
ITEM 1. BUSINESS
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 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 products help every class of user create and use video and audio assets, from the home user to the feature film
professional. Our Professional Film, Video and Broadcast segment offers innovative video and film editing systems, as well as 3D
and special-effects software. These products enable professionals, and aspiring professionals, in the postproduction and broadcast
markets to manipulate moving pictures and sound in fast, easy, creative and cost-effective ways. Our Audio segment offers
consumer and professional 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. Our Consumer Video segment
offers products for home video editing and TV viewing. Our home video editing products allow users to create, edit and share
video content more easily and effectively, while our TV viewing products allow consumers to view, record and time shift television
programming on their computers.
Manage Media. The ability to manage digital media assets effectively is a critical component of success for all content creators.
Our technology enables users to simultaneously share and manage media assets throughout a project or organization. As a result,
professionals can collaborate in real time on all production elements and streamline the process for cost-effective management and
delivery of media. In addition, our tools allow customers to easily repurpose digital assets to take advantage of a variety of market
opportunities. For consumer applications, we also offer products that allow users to manage their media projects, such as home
movies or recorded music.
Move Media. Our products allow our customers to distribute media over multiple platforms - including air, cable or satellite, or
on 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. For professionals as well as consumers, our laptop-based editing
systems, storage products and DVD authoring tools enable easy portability of media.
Our products are used worldwide in production and postproduction facilities; film studios; network, affiliate, independent and cable
television stations; recording studios; performance venues; advertising agencies; government and educational institutions; corporate
communication departments; and by game developers and Internet professionals, as well as by amateurs, aspiring professionals and
home hobbyists. Projects produced by customers using our products have been honored with Oscar, Emmy, and Grammy awards,
in addition to a host of other international awards. We have also received numerous awards for technical innovations, including
two Oscars, 12 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.
In August 2005, we acquired California-based Pinnacle Systems, Inc., or Pinnacle, a supplier of digital video products to customers
ranging from individuals to broadcasters. The acquisition of Pinnacle has allowed us to expand our offerings within our Professional
Film, Video and Broadcast segment through the integration, into this segment, of Pinnacle’s broadcast and professional offerings,
including the Deko on-air graphics system and the MediaStream playout server. It has also provided entry into a new Consumer
Video segment through which we offer Pinnacle’s consumer products, including Pinnacle Studio and other products.