Avid 2006 Annual Report Download - page 95

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85
Unity MediaNetwork technology, and enable users to simultaneously share and manage media assets throughout
a project or organization. This product family accounted for 10%, 10% and 12% of the Company’s consolidated net
revenues in 2006, 2005 and 2004, respectively.
The Audio segment produces digital audio systems for the audio market. This operating segment includes products
developed to provide audio recording, editing, signal processing and automated mixing. This segment includes the
Pro Tools product family, which accounted for approximately 15%, 18% and 24% of the Company’s consolidated net
revenues in 2006, 2005 and 2004, respectively.
The Consumer Video segment develops and markets products that are aimed primarily at the consumer market,
which allow users to create, edit, view and distribute rich media content including video, photographs and audio
using a personal computer. This segment was formed in August 2005 and is comprised of certain product lines
acquired in the Pinnacle acquisition (see Note G).
The Company evaluates performance based on profit and loss from operations before income taxes, interest
income, interest expenses and other income, excluding the effects of restructuring, amortization of intangible
assets or impairment of goodwill and intangible assets associated with acquisitions and stock-based compensation.
Common costs not directly attributable to a particular segment are allocated between segments based on
management’s best estimates.
The following is a summary of the Company’s operations by reportable segment for the years ended December 31,
2006, 2005 and 2004 (in thousands):
Professional
Video Audio
Consumer
Video
Combined
Segments
Year Ended December 31, 2006:
Net revenues $ 479,383 $ 304,362 $ 126,833 $ $910,578
Operating income (loss) 34,008 45,120 (5,227) 73,901
Assets as of December 31, 249,949 93,832 53,955 362,736
Depreciation 16,355 3,486 853 20,694
Capital expenditures 15,257 4,858 658 20,773
Year Ended December 31, 2005:
Net revenues $ 448,288 $ 268,058 $ 59,097 $ $775,443
Operating income 52,735 38,599 3,344 94,678
Assets as of December 31, 179,027 88,437 40,574 308,038
Depreciation 13,473 2,860 465 16,798
Capital expenditures 14,740 2,786 240 17,766
Year Ended December 31, 2004:
Net revenues $ 391,143 $ 198,462 $ — $ 589,605
Operating income 46,153 29,251 — 75,404
Assets as of December 31, 142,105 66,023 — 208,128
Depreciation 9,529 2,502 — 12,031
Capital expenditures 12,477 2,700 — 15,177