Avid 2011 Annual Report Download - page 26

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21
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 products and solutions for audio, film, video, and broadcast
professionals, as well as artists and creative enthusiasts. Our audio and video solutions are designed to be extensions of the
people using them, so that they amplify creativity, speed production processes and provide the science behind the art of making
great creative experiences. We provide our products and solutions to customers in three market segments: Media Enterprises
segment, which consists of broadcast, government, sports and other organizations that acquire, create, process, and/or distribute
audio and video content to a large audience for communication, entertainment, analysis, and/or forensic purposes; Professionals
and Post segment, which is composed of individual artists and entities that create audio and video media as a paid service, but
who do not distribute media to end consumers on a large scale; and Creative Enthusiasts segment, which is made up of individuals
who are music, film or video enthusiasts with varying degrees of involvement in content creation, ranging from casual users to
dedicated hobbyists, including amateur musicians, disc jockeys and “prosumers.”
Our mission is to inspire passion, unleash creativity and enable our customers to realize their dreams in a digital world. We do
this by helping anyone with a passion for making music, movies, video and television, by providing both the technology and the
expertise that power those experiences.
Customers use our solutions to create the most listened to, most watched and loved media in the world. Around the globe, feature
films, primetime television shows, news programs, commercials, live performances and chart-topping music hits are made using
one or more of our 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:
Net revenues:
Product revenues
Services revenues
Total net revenues
Cost of revenues
Gross margin
Operating expenses:
Research and development
Marketing and selling
General and administrative
Amortization of intangible assets
Restructuring and other costs, net
Loss (gain) on sales of assets
Total operating expenses
Operating loss
Interest and other income (expense), net
Loss before income taxes
Provision for (benefit from) income taxes
Net loss
For the Year Ended December 31,
2011
80.6 %
19.4 %
100.0 %
47.3 %
52.7 %
17.4 %
27.1 %
8.5 %
1.3 %
1.3 %
0.1 %
55.7 %
(3.0)%
(0.3)%
(3.3)%
0.1 %
(3.4)%
2010
82.5 %
17.5 %
100.0 %
48.3 %
51.7 %
17.7 %
26.1 %
9.5 %
1.4 %
3.0 %
(0.7)%
57.0 %
(5.3)%
— %
(5.3)%
0.1 %
(5.4)%
2009
81.0 %
19.0 %
100.0 %
48.6 %
51.4 %
19.2 %
27.6 %
9.7 %
1.7 %
4.3 %
— %
62.5 %
(11.1)%
— %
(11.1)%
(0.2)%
(10.9)%