Avid 2008 Annual Report Download - page 92

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87
S. QUARTERLY RESULTS (UNAUDITED)
The following 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
2008 2007
Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31
Net revenues $206,706 $217,066 $222,863 $198,266 $258,520 $226,826 $225,326 $218,898
Cost of revenues 115,310 113,047 112,257 102,460 130,667 109,451 110,445 108,691
Amortization of intangible assets 753 1,249 2,270 3,254 3,566 4,096 4,761 4,472
Restructuring costs 1,876 — — — 1,481 2,797 — —
Gross profit 88,767 102,770 108,336 92,552 122,806 110,482 110,120 105,735
Operating expenses:
Research & development 33,291 37,825 38,972 38,510 38,050 36,471 38,444 37,742
Marketing & selling 49,511 53,638 55,259 50,327 53,425 48,832 56,505 51,694
General & administrative 17,422 19,734 19,492 21,943 21,399 20,514 17,698 17,852
Amortization of intangible assets 2,837 3,307 3,323 3,387 3,431 3,432 3,431 3,432
Impairment of goodwill and intangible
assets 78,715 51,257 — — — — — —
Restructuring costs, net 21,305 2,107 937 1,063 1,338 6,297 1,517 258
Gain on sale of assets (13,287) — — — — — — —
Total operating expenses 189,794 167,868 117,983 115,230 117,643 115,546 117,595 110,978
Operating income (loss) (101,027) (65,098) (9,647) (22,678) 5,163 (5,064) (7,475) (5,243)
Other income (expense), net 331 507 617 1,481 1,739 1,980 2,023 1,895
Income (loss) before income taxes (100,696) (64,591) (9,030) (21,197) 6,902 (3,084) (5,452) (3,348)
Provision for (benefit from) income
taxes, net (443) 1,800 1,355 (49) 3,049 2,769 547 (3,368)
Net income (loss) ($100,253) ($66,391) ($10,385) ($21,148) $ 3,853 ($5,853) ($5,999) $ 20
Net income (loss) per share - basic ($2.71) ($1.80) ($0.28) ($0.54) $0.09 ($0.14) ($0.15) $0.00
Net income (loss) per share - diluted ($2.71) ($1.80) ($0.28) ($0.54) $0.09 ($0.14) ($0.15) $0.00
Weighted-average common shares
outstanding – basic 37,012 36,960 36,904 39,362 41,008 40,798 40,940 41,154
Weighted-average common shares
outstanding – diluted 37,012 36,960 36,904 39,362 41,253 40,798 40,940 41,763
High common stock price $25.00 $29.91 $25.61 $28.38 $29.58 $38.34 $38.78 $38.36
Low common stock price $9.68 $16.60 $16.97 $17.61 $24.79 $25.55 $32.00 $31.90
The Company's quarterly operating results fluctuate as a result of a number of factors including, without limitation,
the timing of new product introductions; the timing of, and costs incurred in association with, the recognition of large
enterprise sales to customers; 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 product and customer mix, and
competitive pressures. Quarterly sales and operating results generally depend on the volume and timing of orders
received and recognized as revenues 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.