Avid 2008 Annual Report Download - page 11

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Desktop and Studio Monitors
We provide a wide range of speakers for use with desktop computer systems and in the studios of creative independents,
established professionals, commercial businesses, post production facilities and broadcasters. These monitors provide
high quality audio output at reasonable prices for those engaged in audio production or simply personal listening.
Other Software
Our Sibelius-branded software allows users to electronically create, edit and publish musical scores. Sibelius software is
used by composers, arrangers and other music professionals. Student versions are also available to assist in the teaching
of music composition and score writing.
We also provide the Torq computer-based disc jockey performance software package. When combined with our
purpose-built M-Audio branded disc jockey hardware interfaces, Torq offers the flexibility and immediacy of the
computer music file-based world with the traditional interaction model and improvisational potential of vinyl recordings
on turntables.
COMPETITION
Our customer market segments are highly competitive and subject to rapid change. Our competition is fragmented with
a large number of companies providing different types of products in different market segments and geographic areas.
We provide integrated solutions that compete based on features, quality, service and price. Companies with which we
compete in some contexts may also act as partners in other contexts, such as large enterprise customer environments.
We compete across multiple business units and market segments with companies such as Apple Inc., Adobe Systems
Incorporated and Sony Corporation.
With respect to our Professional Video segment, we compete with Apple Inc., Autodesk, Inc., Sony, Harris Corporation,
Thomson Grass Valley and Quantel Inc. in most of our markets. In addition, our Professional Video editing solutions
compete with Adobe, and our storage and workflow solutions compete with product offerings from Bit Central Inc.
Our Consumer Video editing products compete with software products offered by Adobe and Sony, as well as Corel
Corporation, Sonic Solutions and Magic AG.
In our Audio business, we compete with Apple and Yamaha Corporation in many of our markets. Competitors of our
digital audio software and workstation solutions include Apple and Steinberg Media Technologies GmbH (a subsidiary
of Yamaha Corporation). Other companies that compete with many of our Audio offerings include Loud Technologies,
Inc. and Roland Corporation.
SALES AND SERVICE CHANNELS
We market and sell our solutions through a combination of direct and indirect sales channels, including a network of
more than 3,000 independent distributors, value-added resellers, dealers and retailers. Our direct sales channel consists
of internal sales representatives serving select customers and market segments, as well as our e-commerce sales
programs.
We have significant international operations with offices in 22 countries around the world. Revenues from our
international operations accounted for 61%, 58% and 57% of our consolidated net revenues for 2008, 2007 and 2006,
respectively. For information on the risks associated with our international operations, see “Risk Factors” in Item 1A of
this annual report.
We generally ship our products shortly after the receipt of an order, which is typical for our industry. Historically, a
high percentage of our revenues has been generated in the third month of each fiscal quarter and is concentrated in the
latter part of that month. Accordingly, orders may exist at the end of a quarter that have not been shipped and have not