Avid 2006 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2006 Avid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 109

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109

58
AVID TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Year Ended December 31,
2006 2005 2004
Cash flows from operating activities:
Net income (loss) $ (42,927) $ 33,980 $ 71,701
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 57,381 37,488 16,292
Provision for (recoveries of) doubtful accounts (618) 753 (201)
In-process research and development 879 32,390 —
Impairment of goodwill and intangible assets 53,000 — 1,187
Loss on disposal of fixed assets 220 21 —
Compensation expense from stock grants and options 17,021 2,447 1,448
Tax benefit of stock option exercises — 1,146 740
Equity in loss (income) of non-consolidated company 203 (291) (221)
Changes in deferred tax assets and liabilities, excluding initial effects of acquisitions 4,499 (226) (1,286)
Changes in operating assets and liabilities, excluding initial effects of acquisitions:
Accounts receivable 10,118 (38,081) (15,450)
Inventories (43,612) (22,649) 620
Prepaid expenses and other current assets (785) 26 (4,804)
Accounts payable (14,236) 6,625 3,300
Income taxes payable 1,472 5,153 141
Accrued expenses, compensation and benefits and other liabilities (13,954) (14,867) 8,634
Deferred revenues 5,059 5,910 (732)
Net cash provided by operating activities 33,720 49,825 81,369
Cash flows from investing activities:
Purchases of property and equipment (20,773) (17,766) (15,177)
Payments for other long-term assets (1,117) (1,624) (656)
Payments for business acquisitions, including transaction costs, net of cash acquired (43,128) (6,419) (135,515)
Cash received in business acquisition, including transaction costs, net of cash paid — 24,942 —
Purchases of marketable securities (53,454) (104,354) (63,907)
Proceeds from sales of marketable securities 92,971 85,865 108,144
Net cash used in investing activities (25,501) (19,356) (107,111)
Cash flows from financing activities:
Payments on capital lease obligations (107) (85) (610)
Payments on debt — — (1,203)
Purchases of common stock for treasury (50,043) — —
Proceeds from issuance of common stock under employee stock plans 8,235 18,114 29,376
Tax benefits of stock option exercises 4,080 — —
Net cash (used in) provided by financing activities (37,835) 18,029 27,563
Effect of exchange rate changes on cash and cash equivalents 2,822 (1,983) 113
Net increase (decrease) in cash and cash equivalents (26,794) 46,515 1,934
Cash and cash equivalents at beginning of period 123,073 76,558 74,624
Cash and cash equivalents at end of period $ 96,279 $ 123,073 $ 76,558
See Notes F, H and R for supplemental disclosures.
The accompanying notes are an integral part of the consolidated financial statements.