Avid 1996 Annual Report Download - page 14

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ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth selected condensed consolidated financial data for Avid Technology, Inc. In January 1995,
Avid Technology, Inc. (Avid) completed a merger with Digidesign, Inc. (Digidesign) that was accounted for as a pooling of
interests. All financial data presented herein have been restated to include the combined financial results of Avid and
Digidesign as though the merger had occurred retroactively. Prior to the merger, Digidesign had a March 31 fiscal year end.
Effective with the merger, Digidesign's fiscal year end was changed from March 31 to December 31 to conform with Avid's
year end. The results of Digidesign's operations for the twelve-month periods ended December 31, 1994, March 31, 1994,
1993 and 1992 are included in the Company's 1994, 1993, 1992 and 1991 results, respectively. Accordingly, Digidesign's
operations for the three months January through March 1994 are included in the Company's results for both of the years
ended December 31, 1993 and December 31, 1994. Revenues, net income, and earnings per share for Digidesign for the
three months ended March 31, 1994 were $8,510,000, $1,078,000 and $0.14 respectively. Net income for this period has
been reported as an adjustment to consolidated 1994 retained earnings. In March 1995, the Company acquired Elastic
Reality, Inc., a developer of digital image manipulation software, Parallax Software Limited and 3 Space Software Limited,
together developers of paint and compositing software. The Company’s previous years’ financial statements have not been
restated to include operations of Parallax Software Limited, 3 Space Software Limited and Elastic Reality, Inc. as they were
not material to the Company’s consolidated operations and financial condition. Costs associated with these mergers,
approximately $5,456,000, were charged to operations in 1995. In addition, the Company acquired certain other businesses
which were accounted for as purchases; the results of such acquisitions have been included in the Company’s financial
statements since the respective dates of acquisition. The selected consolidated financial data below should be read in
conjunction with the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the
consolidated financial statements and notes thereto included elsewhere in this filing.
Consolidated Statements of Income Data: For the year ended December 31,
In thousands (except per share data) 1996 1995 1994 1993 1992
Net revenues $429,009 $406,650 $233,633 $134,366 $69,020
Cost of revenues 238,808 198,841 108,057 60,939 29,333
Gross profit 190,201 207,809 125,576 73,427 39,687
Operating expenses:
Research and development 69,405 53,841 28,223 16,396 8,276
Marketing and selling. 127,006 107,780 61,366 38,960 21,279
General and administrative 24,203 18,085 12,575 7,801 3,335
Nonrecurring costs 28,950 5,456 3,750
Total operating expenses 249,564 185,162 102,164 66,907 32,890
Operating income (loss).. (59,363) 22,647 23,412 6,520 6,797
Other income and expense, net 3,416 1,380 1,675 1,791 152
Income (loss) before income taxes (55,947) 24,027 25,087 8,311 6,949
Provision for (benefit from) income taxes (17,903) 8,588 7,294 2,209 2,504
Net income (loss) $(38,044) $15,439 $17,793 $6,102 $4,445
Net income (loss) per common share $(1.80) $0.77 $0.99 $0.40 $0.38
Weighted average common and common equivalent
shares outstanding 21,163 20,165 17,921 15,216 11,805
Consolidated Balance Sheet Data: As of December 31,
In thousands (except per share data) 1996 1995 1994 1993 1992
Working capital $145,320 $162,260 $86,513 $91,473 $21,780
Total assets 300,979 331,604 182,174 132,355 43,104
Long-term debt, less current portion 1,186 2,945 2,369 545
Redeemable convertible preferred stock 30,897
Total stockholders' equity (deficit) 213,415 247,966 127,887 106,732 (901)