Avid 2014 Annual Report Download - page 91

Download and view the complete annual report

Please find page 91 of the 2014 Avid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

85
P. PRODUCT AND GEOGRAPHIC INFORMATION
The Company provides digital media content-creation, management and distribution products and solutions for film, video, audio and
broadcast professionals, as well as artists and musicians, which the Company classifies as two types, video and audio. The Company
also classifies all its maintenance, professional services and training revenues as services revenues. Operating segments are defined as
components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in assessing performance. The Company’s evaluation of the discrete
financial information that is regularly reviewed by the chief operating decision makers determined that in 2014, 2013 and 2012 the
Company had only one operating segment. Specifically, the Company does not internally measure profitability based upon video,
audio, or service revenue.
The Company’s video products and solutions are designed to improve the productivity of video and film editors and broadcasters by
enabling them to edit video, film and sound; manage media assets; and automate workflows. Professional video creative software and
hardware products include the Media Composer product line used to edit film, television programmings, news broadcasts,
commercials and other video content. Video products also include Avid ISIS shared storage systems and Avid Interplay asset
management solutions that provide complete network, storage and database solutions to enable users to simultaneously share and
manage media assets throughout a project or organization.
The Company’s audio products and solutions include digital audio software and workstation solutions, control surfaces, live sound
systems and notation software that provide music creation; audio recording, editing, and mixing; and live performance solutions.
Audio products include Pro Tools digital audio software and workstation solutions to facilitate the audio production process, including
music and sound creation, recording, editing, signal processing, integrated surround mixing and mastering, and reference video
playback. Audio products also include a range of complementary control surfaces and consoles, including the System 5 and System 6
modular consoles, as well as the VENUE live-sound systems and Sibelius-branded notation software.
The Company’s services revenues are primarily derived from the sale of maintenance contracts and professional service and the
recognition of revenues for Implied Maintenance Release PCS. The Company provides online and telephone support and access to
software upgrades for customers whose products are under warranty or covered by a maintenance contract. The Company’s
professional services team provides installation, integration, planning, consulting and training services.
The following is a summary of the Company’s revenues from continuing operations by type for the years ended December 31, 2014,
2013 and 2012 (in thousands):
Year Ended December 31,
2014 2013 2012
Video products and solutions $ 233,464 $ 243,173 $ 276,909
Audio products and solutions 145,163 152,358 201,921
Total products and solutions 378,627 395,531 478,830
Services 151,624 167,881 156,873
Total net revenues $ 530,251 $ 563,412 $ 635,703
The following table sets forth the Company’s revenues from continuing operations by geographic region for the years ended
December 31, 2014, 2013 and 2012 (in thousands):
Year Ended December 31,
2014 2013 2012
Revenues:
United States $ 193,060 $ 218,154 $ 249,364
Other Americas 45,342 43,131 47,817
Europe, Middle East and Africa 217,767 214,441 245,189
Asia-Pacific 74,082 87,686 93,333
Total net revenues $ 530,251 $ 563,412 $ 635,703