Avid 2005 Annual Report Download - page 25

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Consumer Video
In the Consumer Video segment we compete primarily with video software providers Adobe Systems, Incorporated, Ulead Systems,
Inc., Sony Corporation and Sonic Solutions. We also compete with manufacturers of TV tuners, including ADS Technologies, Inc.,
Hauppauge Computer Works, Inc., ATI Technologies, Inc. and Adaptec, Inc. in the market for TV tuners.
EMPLOYEES
We employed 2,613 people as of December 31, 2005.
WEB SITE ACCESS
We make available free of charge on our Web site, www.avid.com, copies of our Annual Report on Form 10-K, our Quarterly Reports
on Form 10-Q, current reports on Form 8-K and all amendments to those reports, as soon as reasonably practicable after such
material is filed with the Securities and Exchange Commission, and in any event on the same day. Additionally, we will provide paper
copies of all such filings free of charge upon request. Alternatively, these reports can be accessed at the SEC’s internet website:
www.sec.gov.
ITEM 1A. RISK FACTORS
Some of the statements in this Form 10-K relating to our future performance constitute forward-looking statements. Such forward-
looking statements are based upon management’s current expectations and involve known and unknown risks. Realization of any of
these risks may cause actual results to differ materially from the results described in the forward-looking statements. Certain of these
risks are as follows:
We may not be able to realize the expected benefits of our acquisition of Pinnacle Systems
As a result of our recent acquisition of Pinnacle, we face challenges in several areas that could have an adverse effect on our
business. In addition, some of the assumptions that we have relied upon, such as the achievement of operating synergies and
revenue growth, may not be realized. As a result of these and other factors, the acquisition may not result in a financial condition
superior to that which we would have achieved on a stand-alone basis.
If our integration of Pinnacle is not successful, our results of operations could be harmed, employee morale could decline, key
employees could leave and customers could cancel existing orders or choose not to place new ones. With the completion of the
integration, the combined company must operate as a unified organization utilizing common information and communication
systems, operating procedures, financial controls and human resources practices. We may encounter difficulties, unforeseen costs
and delays involved in integrating the Pinnacle business, including:
•฀ failure to successfully manage relationships with customers and with important third parties;
•฀ failure of customers to continue using the products and services of the combined company;
•฀ failure to properly integrate the professional film, video and broadcast businesses of Avid and Pinnacle;
•฀ challenges encountered in managing larger, more geographically dispersed operations;
•฀ difficulties in successfully integrating the management teams and employees of Avid and Pinnacle;
•฀ diversion of the attention of management from other ongoing business concerns;
•฀ potential incompatibility of technologies and systems;
•฀ potential impairment charges to write-down the carrying amount of goodwill and other intangible assets; and
•฀ potential incompatibility of business cultures.
We will also face challenges inherent in efficiently 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.