Avid 2006 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 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

89
S. 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
2006 2005
Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31
Net revenues $239,049 $231,233 $222,226 $218,070 $244,971 $204,420 $160,051 $166,001
Cost of revenues 119,224 113,170 107,631 104,676 117,702 93,720 71,271 70,967
Amortization of intangible assets 4,889 6,208 5,016 5,080 6,610 3,854 282 281
Gross profit 114,936 111,855 109,579 108,314 120,659 106,846 88,498 94,753
Operating expenses:
Research & development 35,000 35,250 35,617 35,496 32,109 29,636 24,910 24,679
Marketing & selling 50,831 50,641 52,583 49,912 49,892 44,601 38,452 37,842
General & administrative 16,239 16,021 15,853 15,137 14,186 12,188 10,471 10,302
Amortization of intangible assets 3,520 3,298 3,977 3,665 3,465 2,544 1,593 1,592
Impairment of goodwill 53,000 — — — — — — —
Restructuring costs 3,167 (1,620) — 1,066 1,158 1,997 — —
In-process research and
development — 569 — 310 — 32,390 — —
Total operating expenses 161,757 104,159 108,030 105,586 100,810 123,356 75,426 74,415
Operating income (loss) (46,821) 7,696 1,549 2,728 19,849 (16,510) 13,072 20,338
Other income (expense), net 1,591 1,832 1,881 1,970 1,851 1,719 1,179 837
Income (loss) before income taxes (45,230) 9,528 3,430 4,698 21,700 (14,791) 14,251 21,175
Provision (benefit) for income taxes 7,335 5,934 731 1,353 3,275 2,966 685 1,429
Net income (loss) ($52,565) $3,594 $2,699 $3,345 $18,425 ($17,757) $13,566 $19,746
Net income (loss) per share - basic ($1.28) $0.09 $0.06 $0.08 $0.44 ($0.46) $0.39 $0.56
Net income (loss) per share - diluted ($1.28) $0.08 $0.06 $0.08 $0.43 ($0.46) $0.37 $0.53
Weighted-average common shares
outstanding – basic 41,016 41,531 42,273 42,137 41,859 38,935 35,177 34,987
Weighted-average common shares
outstanding – diluted 41,016 42,281 43,057 43,200 43,309 38,935 37,024 37,263
High common stock price $40.68 $43.95 $44.45 $59.10 $55.00 $56.90 $61.39 $68.35
Low common stock price $35.56 $32.05 $32.95 $41.65 $37.30 $35.78 $47.64 $52.06
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.