Avid 1996 Annual Report Download - page 40

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transaction, which was accounted for as a pooling of interests, was effected through the exchange of shares of Common
Stock of the Company for all the issued and outstanding shares of SofTECH. The operations of SofTECH are not material
to the Company's consolidated operations. The aggregate consideration for the Basys and SofTECH acquisitions was
approximately $5,000,000 in cash and stock.
P. Quarterly Results (Unaudited)
This 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
1996 1995
Dec. 31 Sept. 30 Jun. 30 Mar. 31 Dec. 31 Sept. 30 Jun. 30 Mar. 31
Net revenues $113,211 $114,664 $109,095 $92,039 $109,931 $114,377 $98,447 $83,895
Cost of revenues 66,266(1) 60,670 59,416 52,456 54,722 56,408 47,143 40,568
Gross profit 46,945 53,994 49,679 39,583 55,209 57,969 51,304 43,327
Operating expenses:
Research & development 17,583 17,569 16,637 17,616 15,657 12,834 13,141 12,209
Marketing & Selling 32,182 31,303 33,088 30,433 32,926 27,747 25,449 21,658
General & administrative 5,857 6,767 6,081 5,498 5,282 4,459 4,110 4,234
Nonrecurring costs 8,800 20,150 5,456
Total operating expenses 55,622 64,439 55,806 73,697 53,865 45,040 42,700 43,557
Operating income (loss (8,677) (10,445) (6,127) (34,114) 1,344 12,929 8,604 (230)
Other income, net 1,596 523 710 587 660 (53) 408 365
Income (loss) before income
taxes (7,081) (9,922) (5,417) (33,527) 2,004 12,876 9,012 135
Provision for (benefit from)
income taxes (2,250) (3,164) (1,760) (10,729) 491 4,122 2,882 1,093
Net income (loss) $(4,831) $(6,758) $(3,657) $(22,798) $1,513 $8,754 $6,130 $(958)
Net income (loss) per
common share $(.23) $(.32) $(.17) $(1.08) $.07 $.43 $.31 $(.05)
Weighted average common
and common equivalent
shares outstanding 21,306 21,224 21,104 21,019 22,196 20,344 19,989 18,129
High common stock price $16.250 $20.500 $25.875 $22.750 $48.750 $47.750 $40.500 $34.000
Low common stock price $10.125 $12.375 $17.875 $16.375 $16.750 $37.250 $28.250 $23.000
(1) Includes a non-cash charge of $5.6 million related principally to spare parts which are no longer required to support the
Company’s business.
The Company's quarterly operating results fluctuate as a result of a number of factors including, without limitation, the
timing of new product introductions, 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. The Company operates with a relatively small backlog. Quarterly sales and operating
results therefore generally depend on the volume and timing of orders received 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.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
Not applicable.