Avid 2009 Annual Report Download - page 24

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19
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
EXECUTIVE OVERVIEW
Our Company
We are a leading provider of digital media content-creation solutions for film, video, audio and broadcast professionals,
as well as artists and home enthusiasts. Our mission is to inspire passion, unleash creativity and enable our customers to
realize their dreams in a digital world. Anyone who enjoys movies, television or music has almost certainly experienced
the work of content creators who use our solutions to bring their creative visions to life. Around the globe, feature films,
primetime television shows, commercials and chart-topping music hits are made using one or more of our solutions.
We have customers throughout the world who rely on us to develop products tailored to their unique needs and
requirements that will allow their businesses to succeed. For their long-term success and our own, we committed in
2008 to becoming a more efficient, innovative and customer-centric company. We initiated a significant transformation
of our business that included, among other things, establishing a new management team, developing a new corporate
strategy, reorganizing our internal structure, improving operational efficiencies, divesting non-core product lines and
reducing the size of our workforce.
Prior to 2009 and since our acquisition of Pinnacle in 2005, our organizational structure was based on three strategic
business units: Professional Video, Audio and Consumer Video. As part of our transformation, we combined our
Professional Video and Consumer Video business units into one Video reporting unit and consolidated our sales and
marketing team into a single customer-facing organization, which better aligns our business structure with the realities
of many of our customers who either depend on, or would benefit from, an integrated solution that encompasses
multiple Avid product and brand families. These changes also enable us to leverage our deep domain expertise, brand
recognition and technology synergies across customer market segments. Our reporting structure in 2009 was based on
two strategic business units Video and Audio, which equated to our reporting units. We are reporting our financial
results in this annual report with reference to these two reportable segments to reflect the way we operated in 2009.
In the later part of 2009, we completed the reorganization of our business around functional groups rather than product
categories. Based on a preliminary assessment of our segment reporting for 2010, we expect to report based on one
reportable segment starting January 1, 2010.