Avid 2011 Annual Report Download

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AVID 2011 ANNUAL REPORT

Table of contents

  • Page 1
    AVID 2011 ANNUAL REPORT

  • Page 2
    ... 2011 we introduced several new products including Avid Motion Graphicsâ„¢, ISIS 5000-16, Fast Track® C Series and the Keystation Mini keyboard controller as well as mobile companion applicationsâˆ'Scorch® and Avid Studio for the iPad®. In addition, we have also completed significant updates to...

  • Page 3
    ... No.) 75 Network Drive Burlington, Massachusetts 01803 (Address of Principal Executive Offices, Including Zip Code) (978) 640-6789 (Registrant's Telephone Number, Including Area Code) Securities Registered Pursuant to Section 12(b) of the Act: Title of Each Class Common Stock, $.01 Par...

  • Page 4
    AVID TECHNOLOGY, INC. FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011 TABLE OF CONTENTS Page PART I. ITEM 1. ITEM 1A. ITEM 1B. ITEM 2. ITEM 3. ITEM 4. PART II. ITEM 5. ITEM 6. ITEM 7. ITEM 7A. ITEM 8. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of ...

  • Page 5
    ... by reference in any filing under the Securities Act of 1933, as amended, or the Securities Act, or the Exchange Act. We own or have rights to trademarks and service marks that we use in connection with the operation of our business. Other trademarks appearing in this annual report on Form 10...

  • Page 6
    ... television shows, news programs, commercials, live performances and chart-topping music hits are made using one or more of our solutions. CORPORATE STRATEGY We operate our business based on the following five customer-centric strategic principles: • • Drive customer success. We are committed...

  • Page 7
    ... annual report on Form 10-K. The following table presents our revenues by type as a percentage of total net revenues for the periods indicated: For the Year Ended December 31, 2011 2010 2009 Video product revenues Audio product revenues Total product revenues Services revenues Total revenues Video...

  • Page 8
    ... mobile app by linking directly to Avid Studio software on the PC desktop. We also offer our Pinnacle Studio consumer video-editing product line, which is available in three configurations, Pinnacle Studio HD, Pinnacle Studio HD Ultimate and Pinnacle Studio HD Ultimate Collection. Pinnacle Studio HD...

  • Page 9
    ...unlimited online technical support, discounted phone support and access to audio plug-ins. Sales of digital audio software and workstation products accounted for approximately 14%, 16% and 15% of our consolidated net revenues in 2011, 2010 and 2009, respectively. Control Surfaces and Live Systems We...

  • Page 10
    ..., planning, consulting and training services. Our professional services team strives to achieve trusted adviser status with our customers and partners, helping each organization customize the solutions and workflows necessary to meet their specific business challenges. Training on our products is...

  • Page 11
    ... respectively. In 2011, an increase in Media Enterprise revenues was a significant driver in the increased sales through direct channels, as compared to 2010. We have significant international operations with offices in 20 countries. Sales to customers outside the United States accounted for 59%, 58...

  • Page 12
    ... international markets in which we operate. For the risks associated with the protection of our intellectual property, see "Risk Factors" in Item 1A of this annual report. RESEARCH AND DEVELOPMENT We are committed to delivering best-in-class digital media content-creation solutions market-tailored...

  • Page 13
    ... versions of our Media Composer, Symphony, NewsCutter and Pro Tools products ship with electronic manuals only, which has reduced the packaging sizes by approximately 85%. We will continue to reduce documentation package sizes for the next releases of many of our products. In 2011, 2010 and 2009...

  • Page 14
    ... in their industry and engage with providers of software as a service. While we continually assess new products and solutions for our customers, open platforms, online collaboration tools, software as a service, growing demand for an increasing array of mobile computing devices and the development...

  • Page 15
    ...; changes in customer demand for our products; competitive pressure on product pricing; changes in product, service or geographic mix; the timing of large or enterprise-wide sales and our ability to recognize revenues from such sales; length of sales cycles and associated costs; demand planning and...

  • Page 16
    ... be highly variable over time reflecting, among other things, order volume, local inflation and exchange rates. Some of our contractor relationships are based on contract, while others operate on a purchase order basis, where we do not have the benefit of written protections with respect to pricing...

  • Page 17
    ... our market reputation or adversely affect our product sales. Third-party technology may also include certain open source software code that if used in combination with our own software may jeopardize our intellectual property rights or limit our ability to sell through certain sales channels. If...

  • Page 18
    ... products directly to end-user customers. Successfully managing the interaction of our direct and indirect channel efforts to reach various potential customer segments for our products and services is a complex process. For example, in response to our direct sales strategies or for other business...

  • Page 19
    ... have used to secure our borrowings under the credit agreement. Potential acquisitions could be difficult to integrate, disrupt our business, dilute stockholder value or impair our financial results. As part of our business strategy, from time to time we acquire companies, technologies and products...

  • Page 20
    combining product offerings and entering into new markets in which we may not have experience; distraction of management's attention from normal business operations; potential loss of key employees of the acquired company; difficulty implementing effective internal controls over financial reporting ...

  • Page 21
    ..., dependent on other business considerations, such as meeting customer expectations with respect to release schedules. Any product defects could result in loss of customers or revenues, delays in revenue recognition, increased product returns, damage to our market reputation and significant warranty...

  • Page 22
    ... approximately 127,000 square feet of office space in Daly City, California, primarily for R&D and sales and marketing activities, and 106,000 square feet in Mountain View, California, primarily for R&D, product management and manufacturing activities. We lease approximately 29,000 square feet of...

  • Page 23
    ... ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the NASDAQ Global Select Market under the symbol AVID. The table below shows the high and low sales prices of the common stock for each calendar quarter of the fiscal years ended December 31, 2011 and 2010. 2011 High Low High 2010...

  • Page 24
    ... companies selected by Avid to best represent its peers based on various criteria, including industry classification, number of employees and market capitalization: Autodesk, Inc., Cadence Design Systems, Dolby Laboratories, Inc., Harmonic, Inc., Imation Corporation, Mentor Graphics Corporation...

  • Page 25
    ... selected condensed consolidated financial data presented. CONSOLIDATED STATEMENTS OF OPERATIONS DATA: (in thousands except per share data) 2011 For the Year Ended December 31, 2010 2009 2008 2007 Net revenues Cost of revenues Gross profit Operating expenses: Research and development Marketing and...

  • Page 26
    ...solutions. Financial Summary The following table sets forth certain items from our consolidated statements of operations as a percentage of net revenues for the periods indicated: For the Year Ended December 31, 2011 2010 2009 Net revenues: Product revenues Services revenues Total net revenues Cost...

  • Page 27
    ... regions for 2011, 2010 and 2009: For the Year Ended December 31, 2011 2010 2009 Americas Europe, Middle East and Africa Asia-Pacific 49% 38% 13% 49% 37% 14% 48% 40% 12% The following table sets forth the percentage of our net revenues sold through indirect and direct sales channels for 2011...

  • Page 28
    ... result, our critical accounting policy for "Revenue Recognition and Allowances for Product Returns and Exchanges" has been updated to reflect adoption of this guidance. ASU No. 2009-13 requires the allocation of revenue to each unit of accounting using the relative selling price of each deliverable...

  • Page 29
    ... of the non-software elements. For 2011 and future periods, pursuant to the guidance of ASU No. 2009-13, when a sales arrangement contains multiple elements, such as non-software products, software products, customer support services, and/or professional services, we allocate revenue to each element...

  • Page 30
    ... if actual product returns or other reseller credits prove to be materially different from our estimates. A portion of our revenues from sales of consumer video-editing and audio products is derived from transactions with channel partners who have unlimited return rights and from whom payment is...

  • Page 31
    ... compensation cost. The estimation of forfeiture rates includes a quarterly review of historical turnover rates and an update of the estimated forfeiture rates to be applied to employee classes for the calculation of stock-based compensation. For 2011, forfeiture rates for the calculation of stock...

  • Page 32
    ...trading days prior to September 30, 2011 ($8.73 per share). If we had used the closing stock price of our common stock on September 30, 2011 ($7.74 per share) in the direct market capitalization approach described above and applied similar weightings, the estimated fair value of our single reporting...

  • Page 33
    ... 31, 2011 and 2010. Restructuring Charges and Accruals We record facility-related restructuring charges in accordance with ASC Topic 420, Liabilities: Exit or Disposal Cost Obligations. Based on our policies for the calculation and payment of severance benefits, we account for employee-related...

  • Page 34
    ... media-editing and finishing systems and related peripherals, including shared-storage systems, software licenses, and related professional services and maintenance contracts. We expect to have low single-digit percentage revenue growth in 2012, compared to 2011. Net Revenues for the Years Ended...

  • Page 35
    ... half of last year also benefited from successful upgrade promotions, not present in the 2011 period, for high-end professional audio products. Audio products revenues decreased in all regions during 2011, compared to 2010. The 11.0% increase in our audio products revenues for 2010, compared to 2009...

  • Page 36
    ... product upgrades, price discounts and other sales-promotion programs, the distribution channels through which products are sold, the timing of new product introductions, sales of aftermarket hardware products such as disk drives, and currency exchange-rate fluctuations. We expect our gross margins...

  • Page 37
    ...are hardware-based, our improved products gross margin percentage during 2011, compared to 2010, was largely driven by increased revenues from software-only products such as Avid Studio, Media Composer software and Pro Tools software. The products gross margin percentage for 2011 also benefited from...

  • Page 38
    ... the Years Ended December 31, 2011 and 2010 (dollars in thousands) 2011 (Decrease) 2010 (Decrease) Increase Increase From 2010 From 2009 $ % $ % Personnel-related expenses Consulting and outside services expenses Computer hardware and supplies expenses Facilities and information technology expenses...

  • Page 39
    ... in marketing activities designed to capture incremental revenues, while the increase in bad debt expenses was largely the result of increased allowances required for higher write-offs recorded during 2011. The decrease in facilities and information technology infrastructure costs for 2011 was...

  • Page 40
    ...each developed technology's remaining useful life. Amortization of developed technology is recorded within cost of revenues. Amortization of customer-related intangibles, trade names and other identifiable intangible assets is recorded within operating expenses. Year-Over-Year Change in Amortization...

  • Page 41
    ... 500 positions, including employees related to product line divestitures, and the closure of all or parts of some facilities worldwide. The 2008 Plan is intended to improve operational efficiencies and bring costs in line with expected revenues. In connection with the 2008 Plan, during the fourth...

  • Page 42
    ... of operations under the caption "restructuring and other costs, net" were costs of $3.7 million related to the exit from our Tewksbury, Massachusetts headquarters lease. The following table sets forth the summary of restructuring and other costs for the years ended December 31, 2011, 2010 and 2009...

  • Page 43
    ...of a valuation allowance on a portion of the deferred tax assets in our Canadian entity. Our effective tax rate, which represents our tax provision (benefit) as a percentage of profit or loss before taxes, was 4%, 1% and (2%), respectively, for 2011, 2010 and 2009. Although we reported worldwide pre...

  • Page 44
    ... our Consolidated Financial Statements in Item 8 of this annual report for additional income tax disclosures for the years ended December 31, 2011, 2010 and 2009. LIQUIDITY AND CAPITAL RESOURCES Liquidity and Sources of Cash We have generally funded our operations in recent years through the use of...

  • Page 45
    ... to meet our operational and strategic objectives for at least the next twelve months. The following table summarizes our cash flows for the years ended December 31, 2011, 2010 and 2009 (in thousands): 2011 Year Ended December 31, 2009 2010 Net cash provided by (used in) operating activities Net...

  • Page 46
    ... Burlington, Massachusetts. While our purchases of property and equipment typically consist of computer hardware and software to support our R&D activities and information systems, the significant decrease in property and equipment purchases in the 2011 period primarily reflected our increased costs...

  • Page 47
    ... table sets forth future payments that we were obligated to make at December 31, 2011 under existing lease agreements and commitments to purchase inventory and other goods and services (in thousands): Total Less than 1 Year 1 - 3 Years 3 - 5 Years After 5 Years Operating leases Unconditional...

  • Page 48
    ... of credit may automatically renew based on the terms of the underlying agreements. We operate our business globally and, consequently, our results from operations are exposed to movements in foreign currency exchange rates. We enter into forward exchange contracts, which generally have one-month...

  • Page 49
    ... through international subsidiaries and generally in the currency of the end-user customers. Therefore, we are exposed to the risks that changes in foreign currency could adversely affect our revenues, net income and cash flow. We may use derivatives in the form of foreign currency forward contracts...

  • Page 50
    ... exposure are accurate, because the impact on the forward contracts as a result of a 10% change would at least partially offset the impact on the revenues and asset and liability positions of our foreign subsidiaries. Interest Rate Risk At December 31, 2011, we held $32.9 million in cash and cash...

  • Page 51
    ... FINANCIAL STATEMENTS INCLUDED IN ITEM 8: Management's Report on Internal Control Over Financial Reporting Reports of Independent Registered Public Accounting Firm Consolidated Statements of Operations for the years ended December 31, 2011, 2010 and 2009 Consolidated Balance Sheets as of December 31...

  • Page 52
    ...policies or procedures may deteriorate. The Company's management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2011. In making this assessment, the Company's management used the criteria set forth by the Committee of Sponsoring Organizations...

  • Page 53
    ...Company Accounting Oversight Board (United States), the consolidated balance sheets of Avid Technology, Inc. as of December 31, 2011 and 2010, and the related consolidated statements of operations, stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2011...

  • Page 54
    ... consolidated financial statements, the Company changed its method of accounting for revenue recognition effective January 1, 2011. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Avid Technology, Inc.'s internal control over...

  • Page 55
    AVID TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) For the Year Ended December 31, 2009 2010 2011 Net revenues: Products Services Total net revenues Cost of revenues: Products Services Amortization of intangible assets Restructuring costs Total cost of ...

  • Page 56
    AVID TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except par value) December 31, 2011 ASSETS Current assets: Cash and cash equivalents Accounts receivable, net of allowances of $15,985 and $17,149 at December 31, 2011 and 2010, respectively Inventories Deferred tax assets, net Prepaid...

  • Page 57
    ... Stock option purchase Stock recovery for payment of withholding tax Comprehensive loss: Net loss Net change in unrealized gains (losses) on defined benefit plan and marketable securities Translation adjustment Other comprehensive income Comprehensive loss Balances at December 31, 2009 Stock...

  • Page 58
    ... option purchase Proceeds from issuance of common stock under employee stock plans, net Proceeds from revolving credit facilities Payments on revolving credit facilities Payments for credit facility issuance costs Net cash provided by (used in) financing activities Effect of exchange rate changes on...

  • Page 59
    .... NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A. ORGANIZATION AND OPERATIONS Avid Technology, Inc. ("Avid" or the "Company") develops, markets, sells and supports a wide range of software and hardware for digital media content production, management and distribution. Digital media are video, audio or...

  • Page 60
    ... Avid. However, certain transactions for the Company's video products, typically complex solution sales that include a significant number of products and may involve multiple customer sites, require the Company to perform an installation effort that it deems to be complex, non-routine and essential...

  • Page 61
    ... Company's revenues from sales of consumer video-editing and audio products is derived from transactions with channel partners who have unlimited return rights and from whom payment is contingent upon the product being sold through to their customers. Accordingly, revenues for these channel partners...

  • Page 62
    ... of operations. The Company held no available for sale securities classified as either cash equivalents or marketable securities at December 31, 2011 or 2010. Realized gains and losses from the sale of marketable securities were not material for the years ended December 31, 2011, 2010 and 2009. 57

  • Page 63
    ... months) and market conditions. Inventory in the digital-media market, including the Company's inventory, is subject to rapid technological change or obsolescence; therefore, utilization of existing inventory may differ from the Company's estimates. Property and Equipment Property and equipment...

  • Page 64
    ... revenues over the estimated useful lives of two years to four years, or the straight-line method over each product's remaining respective useful life. Goodwill is the amount by which the cost of acquired net assets exceeded the fair value of those net assets on the date of acquisition. The Company...

  • Page 65
    ...with ASC Subtopic 985-20, Software - Costs of Software to be Sold, Leased or Marketed. Upon general release, these costs are amortized using the straight-line method over the expected life of the related products, generally 12 to 36 months. The straight-line method generally results in approximately...

  • Page 66
    ...defined benefit plan and marketable securities Accumulated other comprehensive income Accounting for Stock-Based Compensation $ $ 4,807 - 4,807 $ $ 7,717 (449) 7,268 The Company's stock-based employee compensation plans, which are described more fully in Note N, allow the Company to grant stock...

  • Page 67
    ... turnover rates and applies these rates in the calculation of estimated compensation cost. The estimation of forfeiture rates includes a quarterly review of historical turnover rates and an update of the estimated forfeiture rates to be applied to employee classes for the calculation of stock-based...

  • Page 68
    ... Company's consolidated financial position, results of operations or cash flows. C. NET LOSS PER SHARE The following table sets forth (in thousands) potential common shares, on a weighted-average basis, that were considered antidilutive securities and excluded from the Diluted EPS calculations for...

  • Page 69
    ...430 $1 The following table sets forth the net foreign exchange gains and losses recorded as marketing and selling expenses in the Company's statements of operations during the years ended December 31, 2011, 2010 and 2009 that resulted from the Company's foreign exchange contracts not designated as...

  • Page 70
    ... of level 2 benefit plan and deferred compensation liabilities are derived using valuation models, such as the projected unit credit method, with significant inputs derived from or corroborated by observable market data, such as mortality and disability rates from published sources, for example the...

  • Page 71
    ...intangible asset impairment test, the Company estimates the fair value of the asset using a discounted cash flow methodology, which includes assumptions for, among other things, budgets and economic projections, market trends, product development cycles and long-term discount rates. If the estimated...

  • Page 72
    ...on the closing price of Avid stock on the date of acquisition. During the three months ended March 31, 2011, the Company completed its evaluation of the information necessary to determine the fair value of the acquired assets and liabilities of Euphonix and finalized the purchase price allocation as...

  • Page 73
    ... cash, net of cash acquired, of $16.1 million. During the three months ended March 31, 2011, the Company completed its evaluation of the information necessary to determine the fair value of the acquired assets and liabilities of Blue Order and finalized the purchase price allocation as follows (in...

  • Page 74
    ...sold by the buyer. During 2009, the Company recorded a loss on the sale of assets of $3.2 million related to the Company's sale of the PCTV product line as a result of the write-down of PCTV inventory classified as held-for-sale. At December 31, 2009, the Company had inventory classified as held-for...

  • Page 75
    ... If the Company used the closing stock price of its common stock on December 31, 2011 ($8.53 per share), the last trading day in 2011, in the direct market capitalization described above and applied similar weightings described above, the estimated fair value of the Company's single reporting would...

  • Page 76
    ... $2.1 million. Capitalized software development costs amortized to cost of product revenues were $1.2 million, $1.0 million and $1.4 million, respectively, for the years ended December 31, 2011, 2010 and 2009. The Company expects amortization of capitalized software costs to be approximately...

  • Page 77
    ... December 31, 2010 and 2009, respectively. The Company did not receive any sublease income during the year ended December 31, 2011. The Company has letters of credit at a bank that are used as security deposits in connection with the Company's Burlington, Massachusetts office space. In the event of...

  • Page 78
    ... goods and services used in its normal operations. The purchase commitments covered by these agreements are generally less than one year and in the aggregate total approximately $58.3 million. The Company depends on sole-source suppliers for certain key hardware components of its products. Although...

  • Page 79
    ... on the manufacturer's warranty or local law. The following table sets forth the activity in the product warranty accrual account for the years ended December 31, 2011 and 2010 (in thousands): Accrual balance at December 31, 2009 Acquired product warranty Accruals for product warranties Cost of...

  • Page 80
    ...by the Company. Stock Incentive Plans Under its stock incentive plans, the Company may grant stock awards or options to purchase the Company's common stock to employees, officers, directors (subject to certain restrictions) and consultants, generally at the market price on the date of grant. Current...

  • Page 81
    ...The following table sets forth the weighted-average key assumptions and fair value results for restricted stock units with vesting based on market conditions or a combination of performance or market conditions granted during the years ended December 31, 2011 and 2010. No restricted stock units with...

  • Page 82
    ...-Scholes model relies on a number of key assumptions to calculate estimated fair values. The following table sets forth the weighted-average key assumptions and fair value results for shares issued under the ESPP for the years ended December 31, 2011, 2010 and 2009: 2011 2010 2009 Expected dividend...

  • Page 83
    ... following captions in the Company's consolidated statements of operations for the years ended December 31, 2011, 2010 and 2009, respectively (in thousands): 2011 2010 2009 Cost of products revenues Cost of services revenues Research and development expenses Marketing and selling expenses General...

  • Page 84
    ... years ended December 31, 2011, 2010 and 2009 (in thousands): 2011 2010 2009 Income (loss) before income taxes: United States Foreign Total loss before income taxes Provision for (benefit from) income taxes: Current tax expense (benefit): Federal State Foreign benefit of net operating losses Other...

  • Page 85
    2011 2010 Deferred tax assets: Tax credit and net operating loss carryforwards Allowances for bad debts Difference in accounting for: Revenue Costs and expenses Inventories Acquired intangible assets Gross deferred tax assets Valuation allowance Deferred tax assets after valuation allowance ...

  • Page 86
    ... table sets forth a reconciliation of the Company's income tax provision (benefit) to the statutory U.S. federal tax rate for the years ended December 31, 2011, 2010 and 2009: 2011 2010 2009 Statutory rate Tax credits Foreign operations Non-deductible expenses and other Increase in valuation...

  • Page 87
    ... areas with greater opportunity for growth. The 2010 Plan also called for streamlining internal operations while making key investments in organizational efficiencies and to close portions of certain office facilities. During the fourth quarter of 2010, the Company recorded restructuring charges...

  • Page 88
    ... of operations under the caption "restructuring and other costs, net" were costs of $3.7 million related to the exit from its Tewksbury, Massachusetts headquarters lease. The following table sets forth the summary of restructuring and other costs for the years ended December 31, 2011, 2010 and 2009...

  • Page 89
    ... digital media content-creation products and solutions for film, video, audio and broadcast professionals, as well as artists and home enthusiasts, which the Company classifies as two types, video and audio. The Company also classifies all its maintenance, professional services and training revenues...

  • Page 90
    ... revenues in 2011, 2010 and 2009, respectively. The Company's Avid Studio and Pinnacle Studio video-editing product line that allows users to create, edit, view and distribute video media using a personal computer. The Company's audio products include digital audio software and workstation solutions...

  • Page 91
    The following table sets forth the Company's revenues by geographic region for the years ended December 31, 2011, 2010, and 2009: 2011 2010 2009 Revenues: Americas Europe, Middle East and Africa Asia-Pacific Total revenues $ $ 330,378 257,215 90,343 677,936 $ $ 334,849 248,507 95,166 678,522...

  • Page 92
    ... during 2012 as may be required to meet the funding needs of the business. T. SUPPLEMENTAL CASH FLOW INFORMATION The following table reflects supplemental cash flow investing activities related to the acquisitions of Blue Order and Euphonix during the year ended December 31, 2010 and the acquisition...

  • Page 93
    ...such information. Quarters Ended (In thousands, except per share data and stock prices) Dec. 31 Sept. 30 2011 June 30 Mar. 31 Dec. 31 Sept. 30 2010 June 30 Mar. 31 Net revenues Cost of revenues Amortization of intangible assets Gross profit Operating expenses: Research and development Marketing and...

  • Page 94
    ... are included in Item 8 of this Form 10K and are incorporated herein by reference. Changes in Internal Control Over Financial Reporting No change in our internal control over financial reporting occurred during the fiscal year ended December 31, 2011 that has materially affected, or is reasonably...

  • Page 95
    ... applicable to all our employees, including our principal executive officer, principal financial officer and principal accounting officer. We will provide any person, without charge, with a copy of our Code of Business Conduct and Ethics upon written request to Avid, 75 Network Drive, Burlington, MA...

  • Page 96
    ... statements are included in Item 8: Management's Report on Internal Control Over Financial Reporting Reports of Independent Registered Public Accounting Firm Consolidated Statements of Operations for the years ended December 31, 2011, 2010 and 2009 Consolidated Balance Sheets as of December 31...

  • Page 97
    ... or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AVID TECHNOLOGY, INC. (Registrant) By: /s/ Gary G. Greenfield Gary G. Greenfield Chairman of the Board of Directors, Chief Executive...

  • Page 98
    AVID TECHNOLOGY, INC. SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2011, 2010 and 2009 (in thousands) Additions (Deductions) Balance at beginning of period Charged to costs and expenses Charged to other accounts (Deductions) Recoveries Against Allowance Balance at end of ...

  • Page 99
    ... Park Lease dated as of November 20, 2009 between Avid Technology, Inc. and N.W. Building 28 Trust (for premises at 10 North Avenue, Burlington, Massachusetts) 1993 Director Stock Option Plan, as amended Second Amended and Restated 1996 Employee Stock Purchase Plan, as amended 1997 Stock Option Plan...

  • Page 100
    ...Stock Incentive Plan Form of Stock Option Agreement for UK Employees under the HM Revenue and Customs Approved Sub-Plan for UK Employees under the Registrant's Amended and Restated 2005 Stock Incentive Plan Form of Nonstatutory Stock Option Grant... 2007 August 9, 2011 March 14, 2011 000-21174 000-...

  • Page 101
    ....LAB **100.PRE Management contract or compensatory plan identified pursuant to Item 15(a)3. Effective date of Form S-1. XBRL Interactive Data Files will be filed by amendment to this annual report on Form 10-K within 30 days of the filing date of this annual report on Form 10-K, as permitted by...

  • Page 102
    ...except employee data) As of December 31, Cash and marketable securities Total assets Total stockholders' equity Employees 2011 $32,855 $602,611 $417,003 1,787 2010 $42,782 $626,571 $426,610 1,960 2009 $108,877 $611,038 $443,118 2,142 Avid Corporate Headquarters 75 Network Drive Burlington, MA 01803...

  • Page 103
    Avid 75 Network Drive Burlington, MA 01803 USA www.avid.com