Avid 2006 Annual Report Download - page 13

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3
Deliver Excellent Customer Service, Support and Training.
In order to succeed, we must provide experienced, accessible and knowledgeable customer service. The
culture at Avid encourages every employee to focus on providing exceptional customer service. We seek
to train our support staff in a broad range of applications, operating systems and storage and networking
solutions. In addition, we also train our global resellers to deliver application and hardware support directly to
end users. Our staff of consultants provides professional services for media industry consultation and installation
services, and we offer technical training throughout the world through a network of experienced educational
specialists.
To support our strategy and enable our company and customers to benefit from important industry trends,
including the move to high definition (HD) in television production, the switch to all-digital production in broadcast,
the growth of home-audio studios, the move to digital-audio mixing in both studio and live environments, and
the growth of consumer video editing and consumption, we continue to focus on enhancing and broadening
our product offerings, either through internal development or acquisitions. As part of this strategy, we made the
following acquisitions in 2006:
• Medea Corporation, a California-based provider of local-storage solutions for real-time media applications.
The acquisition of Medea allows us to provide high performance, low-cost RAID (Redundant Array of
Independent Disks) storage solutions to our Professional Video customers.
•฀ Sundance Digital, Inc., a Texas-based developer of automation and device control software for broadcast
video servers, tape transports, graphics systems and other broadcast station equipment. The acquisition of
Sundance allows us to offer more open and streamlined broadcast-production workflows across the entire
spectrum of media acquisition, production and transmission.
•฀ Sibelius Software Limited, a UK-based music-applications software company and a leading provider of
music notation software in the education and professional markets. Our acquisition of Sibelius allows us to
broaden our Audio product offerings and accelerate our expansion into the educational market.
Previously, in August 2005, we acquired California-based Pinnacle Systems, Inc., a supplier of consumer and
professional digital-video products. We’ve expanded our offerings through the integration of Pinnacle’s broadcast
and professional offerings, including the Deko on-air graphics system and the MediaStream playout server. The
acquisition also provided entry into the markets served by our Consumer Video business unit through which we sell
Pinnacle’s consumer products, including Pinnacle Studio (application software for video editing), PCTV and other
products.
In August 2004, we acquired California-based M-Audio, a leading provider of digital audio and MIDI solutions for
electronic musicians and audio professionals. The acquisition of M-Audio provided our first entry point into the
consumer audio and entry-level professional audio market, and allowed us to integrate M-Audio hardware with
Digidesign Pro Tools software, bringing the power of our Pro Tools application to a wider audience.
PRODUCTS
The following section describes the major categories of products and brand families within each of our business
units, which are also our reportable segments. Information about our reportable segments, including total revenues,
operating income and total assets, as well as a geographic breakdown of our revenues and long-lived assets, can
be found in Footnote O to our Consolidated Financial Statements in Item 8.
PROFESSIONAL VIDEO
Video and Film Editing and Finishing
Media Composer Family
This group of digital nonlinear editing products includes the Media Composer with Avid Mojo SDI and
Media Composer Adrenaline systems, and Media Composer software. These products are widely used for
editing prime-time television programs, commercials and films, and comprised 9%, 12% and 17% of our
consolidated net revenues in 2006, 2005 and 2004, respectively.