Avid 2005 Annual Report Download - page 91

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77
Q. QUARTERLY RESULTS (UNAUDITED)
The following information has been derived from unaudited consolidated financial statements that, in the opinion of management,
include all normal recurring adjustments necessary for a fair presentation of such information.
(In thousands, except per share data)
Quarters Ended
2005 2004
Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31
Net revenues $244,971 $204,420 $160,051 $166,001 $174,971 $147,374 $139,886 $127,374
Cost of revenues 117,702 93,720 71,271 70,967 77,145 62,845 60,995 54,103
Amortization of intangible assets 6,610 3,854 282 281 281 127 – –
Gross profit 120,659 106,846 88,498 94,753 97,545 84,402 78,891 73,271
Operating expenses:
Research & development 32,109 29,636 24,910 24,679 25,845 23,879 22,924 22,292
Marketing & selling 49,892 44,601 38,452 37,842 36,768 32,009 32,413 28,933
General & administrative 14,186 12,188 10,471 10,302 11,968 9,266 7,427 6,807
In-process research and development – 32,390 – – ––– –
Restructuring and other costs, net 1,158 1,997 – – ––– –
Amortization of intangible assets 3,465 2,544 1,593 1,592 1,665 988 549 439
Impairment of intangible assets – – – – 1,187 – – –
Total operating expenses 100,810 123,356 75,426 74,415 77,433 66,142 63,313 58,471
Operating income (loss) 19,849 (16,510) 13,072 20,338 20,112 18,260 15,578 14,800
Other income (expense), net 1,851 1,719 1,179 837 653 651 595 (560)
Income (loss) before income taxes 21,700 (14,791) 14,251 21,175 20,765 18,911 16,173 14,240
Provision (benefit) for income taxes 3,275 2,966 685 1,429 (1,749) (63) 700 (500)
Net income (loss) $18,425 ($17,757) $13,566 $19,746 $22,514 $18,974 $15,473 $14,740
Net income (loss) per share - basic $0.44 ($0.46) $0.39 $0.56 $0.66 $0.58 $0.49 $0.47
Net income (loss) per share - diluted $0.43 ($0.46) $0.37 $0.53 $0.61 $0.54 $0.45 $0.44
Weighted-average common
shares outstanding – basic 41,859 38,935 35,177 34,987 34,355 32,737 31,623 31,202
Weighted-average common
shares outstanding – diluted 43,309 38,935 37,024 37,263 36,751 35,033 34,134 33,740
High common stock price $55.00 $56.90 $61.39 $68.35 $62.57 $54.66 $61.68 $55.42
Low common stock price $37.30 $35.78 $47.64 $52.06 $46.48 $40.90 $44.11 $38.43
The Company’s quarterly operating results fluctuate as a result of a number of factors 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
results may fluctuate in the future as a result of these and other factors, including the Company’s success in developing and
introducing new products, its products and customer mix and the level of competition which it experiences. Quarterly sales and
operating results generally depend on the volume and timing of orders received and recognized as revenue during the quarter. The
Company’s expense levels are based in part on its forecasts of future revenues. If revenues are below expectations, the Company’s
operating results may be adversely affected. Accordingly, there can be no assurance that the Company will be profitable in any
particular quarter.