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Avid postpones Q4 earnings call "indefinitely," accounting under investigation
Old 30th April 2017
  #1561
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UnderTow's Avatar
Quote:
Originally Posted by latweek View Post
I've lived in West LA and worked major label records out of all the pro LA studios for the last 25 years using many other software products like Cubase/Nuendo, DP etc, since the late 90's and worked with any and all computer sequencing software since the mid 80's. I actually don't like to use any one DAW, so the theory of my hating is totally blown. Fact is, a multitude of my LA peer engineers, composers, producers have moved on from PT in the last several years.

There is no hate here. Like many, I am just facing the fact that this platform has stagnated and is withering. Each new release has fewer features and a myriad of new bugs that come with it. That's real. Not a thing that stops me from working on it, but I have a stake in watching it get screwed badly by poor management. I find Avid's leadership and strategy to be adversarial to their customers, and that is not my imagination, its a widely held view that has put so many other players into the conversation. It will definitely be fine with me, whatever happens.

So, whatever your perspective is, that's fine. Keep it. Just don't expect to dictate what everyone else thinks because of a pretty lame argument from authority. It's just your perspective. That's the only response I have said, and its about the constant drone of saying "hating" when someone disagrees. Its juvenile.

Here's a suggestion:For those who think the posts in this thread are too "negative" and "hating", instead of threadcrapping here, why not open a new thread that discusses how great Avid is doing, and see how well that goes......

I think one important aspect of this thread needs to be clarified: This thread started in the post-production section of the forum and is essentially a discussion about PT/Avid in the post-production market, not the music market.

That might explain part of the different views and perspectives in this discussion.

Alistair
Old 30th April 2017
  #1562
Gear Guru
 
UnderTow's Avatar
Quote:
Originally Posted by ithinktherefore View Post
Except the financials aren't showing a slow mow car crash. They are showing a car crash and a slow rebuild. See my financials post that the bashers considered "trolling".
It is being called trolling because it has all long been addressed in this thread but you choose to ignore it. Your statements aren't remotely close to the reality of what is actually happening. Even Avid's own numbers show this clearly if you bother looking at them, the numbers that is (ALL of them, especially take up on subscriptions and other metrics showing actual growth or absence thereof), not the marketing speak twisting of reality by Avid's management.

You are also being called a troll because of your rudeness and characterisation of the participants in this discussion which started from your very first post in this thread.

Quote:
Originally Posted by ithinktherefore View Post
Again, they can give up the revenue gained from smaller studios or people who just need a simple editor. Focusing on a niche with higher margins and less revenue could make them more profitable, which then gives the company an ability to be more agile. AVID can't be everything to everyone.
This is a perfect example of something that has long been addressed in this thread. Multiple times. The Byre just explained it again. And to add to The Byre's explanation:

"major future updates and service agreements that lead to losses and that Avid failed to book properly" and then subsequently booked retroactively to previous book years making those years look worse and current years look better. THAT is why the numbers you (ithinktherefore) discuss are meaningless. They are artificial numbers that don't even follow GAAP rules. This has all been thoroughly explained.

Alistair
Old 30th April 2017
  #1563
Gear Head
 

Quote:
Originally Posted by UnderTow View Post
It is being called trolling because it has all long been addressed in this thread but you choose to ignore it. Your statements aren't remotely close to the reality of what is actually happening. Even Avid's own numbers show this clearly if you bother looking at them, the numbers that is (ALL of them, especially take up on subscriptions and other metrics showing actual growth or absence thereof), not the marketing speak twisting of reality by Avid's management.

You are also being called a troll because of your rudeness and characterisation of the participants in this discussion which started from your very first post in this thread.



This is a perfect example of something that has long been addressed in this thread. Multiple times. The Byre just explained it again. And to add to The Byre's explanation:

"major future updates and service agreements that lead to losses and that Avid failed to book properly" and then subsequently booked retroactively to previous book years making those years look worse and current years look better. THAT is why the numbers you (ithinktherefore) discuss are meaningless. They are artificial numbers that don't even follow GAAP rules. This has all been thoroughly explained.

Alistair
Assertions is all your post is. I explicitly laid out the financials. Which has been so conviently ignored by the haters. Anything positive you dismiss with projective assertions of ulterior motive or accounting tricks. I don't know why it's so hard to accept that AVID will be here for awhile still. And 5 years from now, y'all will be posting in this thread for 10 years saying the same thing. It sure is trendy. But maybe after 5 years the trend will die, like most trends. And that's my opinion. It's not trolling. It may be an opinion that you disagree with, it may be an opinion that's blunt, but we are all adults here. I call it like I see it. The negative hype in this thread is incredibly partisan.
Old 30th April 2017
  #1564
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I don't want Avid to die. I just want them to get their s**t together and become the true industry standard that they once were. I think many people on this thread feel that way, which is why we keep posting on here.
Old 1st May 2017
  #1565
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Quote:
Originally Posted by doom64 View Post
I don't want Avid to die. I just want them to get their s**t together and become the true industry standard that they once were. I think many people on this thread feel that way, which is why we keep posting on here.
And little tweety-birds will fly out of my butt! The sad truth is that the executive suite is being paid big money to keep thing going somehow and there is no motive for anybody to stop that gravy train.

In other words, they are doomed to make the same mistake that Sony made over 20 years ago - "We are and we set the industry standard. We are what you must use if you want to be regarded as a professional."

That attitude actually worked for a while. NLE rigs were (at first) not reliable and had all kinds of drawbacks - but by the year 2000, almost every small operator had gone over to using an Avid and the big boys were forced to follow.

Quote:
Originally Posted by UnderTow View Post
I think one important aspect of this thread needs to be clarified: This thread started in the post-production section of the forum and is essentially a discussion about PT/Avid in the post-production market, not the music market.

That might explain part of the different views and perspectives in this discussion.
A VERY important point!

There used to be several interlocking and interweaving markets, such as amateur musicians, professional commercial studios, film post, TV, film-for-TV, corporate video, radio, radio production, etc., etc.

Now there are just two markets (1) Film/video and (2) music.

Within the Film/video market (which is now pretty much the same equipment at all levels) there is a very clear breaking away from PT/MC outside of Hollywood, though many key players still opt for Avid, as Avid is better able to provide a turnkey installation at manufacturer level and is better at supporting systems houses.
Quote:
The dirty not so secret of the industry is that Pro Tools is demanded in the contracts. If you don't use Pro Tools you don't get the gig, no exceptions. Even if the software is inferior. You're the weirdo if you choose to use a faster, less crash prone tool to get the job done.
That applies to Hollywood - away from Tinsel-Town, things are a bit less dogmatic - the last two Bond movies were done on Premier, though sound was PT.

With the exception of some large studios that rely on Hollywood score contracts, the music scene is pretty catholic about what systems it uses. Logic, CuBase and Reaper are collectively and separately, more often found being used, than PT for music and some analysts even place Studio-One above PT for numbers of users in music (though I have my doubts there!)

Only speed and the ease of use will count in the long run. $20k for a decent NLE rig may exercise the mind and emotions of a very small operator, but if you are making a TV series for $4m per episode, nobody cares what the day-rates for the NLE are. The most expensive NLE or DAW is the one that is the slowest and/or the one that hinders you whilst working with others on that project.

So right now, if everybody else is using MC and PT, even if Reaper, CuBase, Hit-Film, DaVinci or Premier are faster, bigger, better, whatever (and I, for one, am not convinced that they are so very much better) if you have to network with others working at an international level, Avid it must be!

The only player in that lot, who has (only just now) incorporated proper networking tools is BMD with DaVinci. That demonstrates that BMD is actually listening to the professional film/video market, something the others have so far (IMO) singularly failed to do.
Old 10th May 2017
  #1566
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Avid released its quarterly financials. Not good.

Revenue was $104.1 million, which is down 27% ( down $39.4 million) year-over-year and down $11.2 million from last quarter.

They posted a Net Loss of $1.9 million, which is down $22.9 million year-over-year and down $7.1 million from last quarter. (So much for the fanboy predictions of higher profits on lower revenue.)

Adjusted EBITDA of $13.0 million was down $25.5 million year-over-year and down $12.2 million from last quarter.

All this while (a) bookings were almost $100 million higher than the same period last year and (b) Net Cash from by Operating Activities was a positive $3.5 million (up $14.7 million year-over-year and up $3.8 million from the last quarter).

In other words, any gains in bookings and cashflow went to Avid's partners -
not Avid - and revenue is in line with its own cratered projections:

Annual Revenue

2012: $636m
2013: $563m
2014: $530m
2015: $506m
2016: $512m
Avid's own projected 2017 revenue $405m-$435m
Old 10th May 2017
  #1567
Gear Head
 

Quote:
Originally Posted by skira View Post
So much for the fanboy predictions of higher profits on lower revenue.
I never predicted that for this quarter - and, again, let's not ignore that 2016 total yearly numbers showed exactly that: higher profits on lower revenue. They are in a transition phase - and what the transition goal is, is higher profits on lower revenue. Things in the real world take "time". I know, I know. It's kewl to be hater. Also, let's point out since AVID's accounting is fake and management are criminals, this actually means they lost $100,000,000,000 and have secretly shut off the lights and have 2 employees left. Not a good quarter. But I'm interested in the marathon. I don't crack open the champagne on one bad quarter - or one good quarter for that matter. Let the partisan arguing commence for Quarter 2! 3 Quarters left in the game! Then next year's AVID bash thread season starts again. How long has this thread been going for? I really need to be right on this one.
Old 11th May 2017
  #1568
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doom64's Avatar
Quote:
Originally Posted by ithinktherefore View Post
I never predicted that for this quarter - and, again, let's not ignore that 2016 total yearly numbers showed exactly that: higher profits on lower revenue. They are in a transition phase - and what the transition goal is, is higher profits on lower revenue. Things in the real world take "time". I know, I know. It's kewl to be hater. Also, let's point out since AVID's accounting is fake and management are criminals, this actually means they lost $100,000,000,000 and have secretly shut off the lights and have 2 employees left. Not a good quarter. But I'm interested in the marathon. I don't crack open the champagne on one bad quarter - or one good quarter for that matter. Let the partisan arguing commence for Quarter 2! 3 Quarters left in the game! Then next year's AVID bash thread season starts again. How long has this thread been going for? I really need to be right on this one.
Yeah yeah but this quarter was before Da Vinci Resolve 14 with Fairlight was released. Free for basic features and a $300 perpetual license for advanced features. They made the program run better/more CPU efficient which is something Avid needs to focus on.

It will be interesting to see how Avid responds.
Old 11th May 2017
  #1569
Lives for gear
Quote:
Originally Posted by ithinktherefore View Post
They are in a transition phase.
According to Hernandez, they are out of their transition phase.

These figures are neither good nor bad - they're just more of the same.

Avid may indeed have 'turned the corner' and can see some distant light at the end of a very long and smokey, or should I say 'cloudy' tunnel. Media Central customers have increased 30% p.a. to 47,000 and cloud subscribers have doubled to 71,000. I think that it goes without saying that this level of growth is not nearly enough - however, it is early days yet.

But since this thread started in 49BC (or was it earlier? I seem to forget!) in a flurry of glee over the demise of Avid (now a smallish company, struggling to survive) the whole market has changed. As Doom points out, Blackmagic Design is now gunning for the NLE and post production market (Avid's bread and butter) and given BMD's exponential growth, what owner Grant Petty wants, Grant Petty seems to get!

By completely focusing on the 4K market and all but ignoring hi-def completely (BMD still have a few hi-def products) he has leap-frogged the market, leaving Sony and others with a game of catchy-uppy, as they try to move legacy hi-def hardware.

In audio, ProTools has fallen to fourth or fifth most used audio SW, behind CuBase, Logic, Reaper and possibly even Studio-One and Avid is relying on 'enterprise customers' (i.e. larger corporations buying turnkey installations) for its meat-n-potatoes. The only problem with that is, there are fewer and fewer large companies around, requiring giant turnkey installations and maintenance contracts.

When I started at Granada back in the 60s (which is I believe about the same time that this thread started) everything that went out of the door was produced by Granada and all the staff working there were in-house and on the pay-roll. Only the talent was free-lance. Today, most large production companies and broadcasters have completely 'hollowed-out' - i.e. they commission stuff from small, independent companies, who in turn hire only free-lance technical staff.

Very often, the guy holding a camera has had to pay for that camera himself. The guy editing the footage has had to pay for that PC or Mac and had to pay for all the software on it as well. We hosted a shoot for the BBC and there was not one BBC employee anywhere near the place and every camera person was holding a camera that they had paid for themselves.

Many other broadcasters the World over, are completely without any news, production or even technical play-out and transmission facilities whatsoever.

Bearing that in mind, a policy to concentrate on large contracts from large companies (i.e. 'enterprise' customers) is to put all your eggs in a basket with a giant hole in the bottom!

The key to attracting new customers in this market of small independent companies and operators is to do three things -

(1) Innovate (2) innovate and (3) innovate.

Any tech. company today has to be pouring new and exciting features out into the market. Small, funky companies are doing just that.

Last edited by The Byre; 11th May 2017 at 12:16 PM..
Old 11th May 2017
  #1570
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Excellent points, Byre. Especially about freelancers. Being on a staff at a large company to going independent is a story many in multimedia production can tell.

I get the feeling Blackmagic Design gathered a lot of feedback from Avid's own forums where users post feature requests. And they also probably had focus groups of video editors, audio engineers and colorist. They asked them what they wanted and then with Resolve 14 they gave it to them. Basic business stuff (focus groups, listening to customers) that Avid forgot about.
Old 11th May 2017
  #1571
Gear Head
 

Quote:
Originally Posted by doom64 View Post
Yeah yeah but this quarter was before Da Vinci Resolve 14 with Fairlight was released. Free for basic features and a $300 perpetual license for advanced features. They made the program run better/more CPU efficient which is something Avid needs to focus on.

It will be interesting to see how Avid responds.
True! It's a cut throat business. AVID will have to evolve just like everyone else. I believe I've said multiple times that AVID needs to find a niche and that their business plan is pushing towards that niche - I know a lot of people here don't believe a word that comes from management, but I am looking forward to the post-restructuring AVID stage, which according to management should be a quarter or two from now. Gotta prep the car before you get back in the race, so to speak.
Old 11th May 2017
  #1572
Gear Head
 

Quote:
Originally Posted by The Byre View Post
According to Hernandez, they are out of their transition phase.

These figures are neither good nor bad - they're just more of the same.

Avid may indeed have 'turned the corner' and can see some distant light at the end of a very long and smokey, or should I say 'cloudy' tunnel. Media Central customers have increased 30% p.a. to 47,000 and cloud subscribers have doubled to 71,000. I think that it goes without saying that this level of growth is not nearly enough - however, it is early days yet.

But since this thread started in 49BC (or was it earlier? I seem to forget!) in a flurry of glee over the demise of Avid (now a smallish company, struggling to survive) the whole market has changed. As Doom points out, Blackmagic Design is now gunning for the NLE and post production market (Avid's bread and butter) and given BMD's exponential growth, what owner Grant Petty wants, Grant Petty seems to get!

By completely focusing on the 4K market and all but ignoring hi-def completely (BMD still have a few hi-def products) he has leap-frogged the market, leaving Sony and others with a game of catchy-uppy, as they try to move legacy hi-def hardware.

In audio, ProTools has fallen to fourth or fifth most used audio SW, behind CuBase, Logic, Reaper and possibly even Studio-One and Avid is relying on 'enterprise customers' (i.e. larger corporations buying turnkey installations) for its meat-n-potatoes. The only problem with that is, there are fewer and fewer large companies around, requiring giant turnkey installations and maintenance contracts.

When I started at Granada back in the 60s (which is I believe about the same time that this thread started) everything that went out of the door was produced by Granada and all the staff working there were in-house and on the pay-roll. Only the talent was free-lance. Today, most large production companies and broadcasters have completely 'hollowed-out' - i.e. they commission stuff from small, independent companies, who in turn hire only free-lance technical staff.

Very often, the guy holding a camera has had to pay for that camera himself. The guy editing the footage has had to pay for that PC or Mac and had to pay for all the software on it as well. We hosted a shoot for the BBC and there was not one BBC employee anywhere near the place and every camera person was holding a camera that they had paid for themselves.

Many other broadcasters the World over, are completely without any news, production or even technical play-out and transmission facilities whatsoever.

Bearing that in mind, a policy to concentrate on large contracts from large companies (i.e. 'enterprise' customers) is to put all your eggs in a basket with a giant hole in the bottom!

The key to attracting new customers in this market of small independent companies and operators is to do three things -

(1) Innovate (2) innovate and (3) innovate.

Any tech. company today has to be pouring new and exciting features out into the market. Small, funky companies are doing just that.
All good points. I haven't listened to the audio conference yet - did Hernandez say their restructuring is complete? I was under the impression it was going to either be this quarter or next quarter where the business model will begin the application of the restructuring, if that makes sense.

And yep - AVID will always be required to innovate, as will every other company. AVID will be a smaller company than they were a decade or two ago (or perhaps much larger lol who knows). I don't see the point in kicking them while they are down, while they are trying to get back up, so to speak. I do look forward to seeing what they come up with, with their cloud integration solutions in the future, just from a technical standpoint.

And, as an aside, their stock closed green yesterday, which I found to be a strong signal for more swing trading!
Old 11th May 2017
  #1573
Gear Head
 

Quote:
Originally Posted by doom64 View Post
Yeah yeah but this quarter was before Da Vinci Resolve 14 with Fairlight was released. Free for basic features and a $300 perpetual license for advanced features. They made the program run better/more CPU efficient which is something Avid needs to focus on.

It will be interesting to see how Avid responds.
Free for basic features - I didn't hear that. I was probably going to check out the free version of media composer, so I'll check this out too. The only video I do is some guitar/performance videos with some musician friends of mine and premiere elements is terrible.
Old 11th May 2017
  #1574
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doom64's Avatar
Quote:
Originally Posted by ithinktherefore View Post
Free for basic features - I didn't hear that. I was probably going to check out the free version of media composer, so I'll check this out too. The only video I do is some guitar/performance videos with some musician friends of mine and premiere elements is terrible.
Resolve 14 is not ready for prime time. It's still in beta and I have had it crash on me too many times so I'll wait it out for the final version. You need a good graphics card for it to work properly, which isn't the case with Adobe Premiere or Grass Valley Edius. Even if you are just wanting to mix audio you need a decent graphics card.

When Resolve does work it works wonderfully though. It starts up fast, it is intuitive to use. They just need to work out the kinks.

So, that being said Avid still has time to make major computer efficiency and file format improvements to Pro Tools and Media Composer.
Old 11th May 2017
  #1575
Motown legend
 
Bob Olhsson's Avatar
 

While most of the big studios and broadcasters have consolidated, I can't see how that would reduce the number of editors they employ. Most of the free lancers I know started at big studios on Media Composer. Final Cut was cheap enough to allow work from home which was a game changer however people learned Final Cut in their spare time. Now that Media Composer is also native, I don't see price as being nearly as big of a factor as time spent learning under the pressure of deadlines. The difference between a hobbyist and a professional is deadlines.
Old 12th May 2017
  #1576
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skira's Avatar
 

From the analyst call - Pro Tools revenue less than 25% of what was predicted, and Avid just whistles past the graveyard:

Steven Frankel

Good morning. So when I go back to my notes from the Q4 call, I had that Q1 was suppose to have around 7 million in Pro Tools accelerator revenue. And I think you called out about 1 million. What’s change there and what happens in the next couple of quarters relative to Pro Tools PCS?

Brian Agle

The estimates for the PCS revenue, but ended up with 1.7 and going forward that’s really an immaterial amount. We’re please that that particular revenue adjustment is behind us
Old 12th May 2017
  #1577
Quote:
Originally Posted by The Byre View Post
According to Hernandez, they are out of their transition phase.

These figures are neither good nor bad - they're just more of the same.

(edited for brevity)
Technical issues and keeping up with the competition is a challenge for these guys, but I think at the same time a lot of the hatred directed at Avid is due to the company being a poster boy for corporate greed- fudging the books some years ago/being delisted, and afterwards the corporate boardroom awarding themselves lavish bonuses for seemingly lackluster performance on their part. That leaves a bitter taste in many people's mouths.
Old 12th May 2017
  #1578
Gear Head
 

Quote:
Originally Posted by skira View Post
From the analyst call - Pro Tools revenue less than 25% of what was predicted, and Avid just whistles past the graveyard:

Steven Frankel

Good morning. So when I go back to my notes from the Q4 call, I had that Q1 was suppose to have around 7 million in Pro Tools accelerator revenue. And I think you called out about 1 million. What’s change there and what happens in the next couple of quarters relative to Pro Tools PCS?

Brian Agle

The estimates for the PCS revenue, but ended up with 1.7 and going forward that’s really an immaterial amount. We’re please that that particular revenue adjustment is behind us
Good job cherry picking 1% of the conference call (a talk about a dated model they use for estimates) and citing "graveyard" - funny how the analysts weren't really that much interested in that and the stock has risen since the call. Dooooomed. For those who want an unfiltered/unbiased view of the big picture, here are links to the conference call transcript, and slides provided by AVID:

https://seekingalpha.com/article/407...gs-call-slides
https://seekingalpha.com/article/407...all-transcript
Old 12th May 2017
  #1579
Gear Guru
 
UnderTow's Avatar
Quote:
Originally Posted by ithinktherefore View Post
Good job cherry picking 1% of the conference call...
This is an audio forum and this thread is specifically about post-production tools. Looking at the PT numbers (and projections) isn't nearly as strange as you suggest.

Alistair
Old 12th May 2017
  #1580
Lives for gear
Before I go any further, let me just point out that a good CFO can make the figure reflect any situation he or she wants them to. Well, for a while at least. I prefer to look at the 'back-of-envelope' figures! The bigger and broader picture, if you will. Total revenue, numbers employed, level of innovation, where the is market going - stuff like that. With those thoughts in mind -

As always, Bob makes some important points that we must not forget!

Quote:
Originally Posted by Bob Olhsson View Post
While most of the big studios and broadcasters have consolidated, I can't see how that would reduce the number of editors they employ.
You're right! It does not! But it does mean that the editor is closer to (or even the same person as) the person making the NLE and DAW purchase decisions. That fact makes the market that much more sensitive to price.

In the world you and I used to inhabit, nobody cared (or even knew) what the cost of a Steenbeck editing table was, because (1) we didn't have to pay for it, (2) it lasted for ever, and (3) the cost of equipment pales into insignificance, compared to all the other costs, talent in particular!

In the past, having a large media outlet was almost like having a license to print money! Film, radio, TV, all were earning large sums and pay-scales could afford to be generous and equipment purchase decisions always placed reliability first and speed of operation second. When I started, a TV camera cost more than a nice, middle class house with a generous garden. Now they are almost a disposable item!

All those Steenbecks and the tape-based editing systems and even the switchers for live work are being replaced by software, or SW with a box. $1,000 will buy you a two-level, 12-input, 4K switcher. Today a grand, tomorrow, a Franklin, or maybe just a free download!

Quote:
Originally Posted by Bob Olhsson View Post
Final Cut was cheap enough to allow work from home which was a game changer however people learned Final Cut in their spare time. Now that Media Composer is also native, I don't see price as being nearly as big of a factor as time spent learning under the pressure of deadlines.
FCP exposed the pro-video market's soft underbelly of high margins and massive advertising and marketing budgets. Suddenly, anybody with a decent Mac could edit at a professional level and all those smaller, specialist editing and production companies dumped everything else and just used FCP.

Quote:
Originally Posted by Bob Olhsson View Post
I don't see price as being nearly as big of a factor as time spent learning under the pressure of deadlines.
The danger for Avid of DaVinci getting a total work-over and becoming a decent editor and tool for audio-post, is that it is already in the editing rooms as a finishing tool and we all know how to use it. Version 14 may not be up to snuff just yet, but just announcing the new prices and Fairlight tools is sending shock-waves through the industry and having post-rooms everywhere delaying any purchasing decisions (which is why BMD made the announcement when they did!)

BMD have a vested interest in seeing the existing market structures collapse.

Quote:
Originally Posted by Bob Olhsson View Post
The difference between a hobbyist and a professional is deadlines.
Never a truer word said!

In TV we have always had deadlines, but now everything is timed. Nearly every movie has viewing dates negotiated BEFORE principle photography has even started. Three months for editing, ADR, post-prod, finishing, test screenings, reworking, more tests and final approval is not unusual!

Tighter deadlines means more editors, more crew, more free-lancers working alone and on their own systems, building 3D models, layering, whatever. Even TV shows now have second and third crews, just to meet those crazy deadlines!

The market is changing and the speed of change is accelerating. With the coming of 5G network systems, we all shall have unlimited bandwidth and all gateway and distribution functions (TV networks, digital cinema networks, pay-per-view channels) will evaporate. The differences between high-end and low-end equipment will vanish totally and the only difference will be the quality of the people using that equipment.
Old 12th May 2017
  #1581
Gear Head
 

Quote:
Originally Posted by UnderTow View Post
This is an audio forum and this thread is specifically about post-production tools. Looking at the PT numbers (and projections) isn't nearly as strange as you suggest.

Alistair
Except they weren't talking about Pro Tools sales as a whole (accelerator), nor were they talking about current metrics - they were referring to a metric from years ago that is being eliminated on a product line they aren't really pushing anymore. Read the conference call. That metric Agle said will be effectively $0 moving forward - and no analyst gasped "$0 pro tools sales???" If you are going to cherry pick, at least know what you are cherry picking.

Brian Agle
Yes. So, Steve, we were happy with our revenue and our operating revenue. The estimates for the PCS revenue, but ended up with 1.7 and going forward that’s really an immaterial amounts. We’re please that that particular revenue adjustment is behind us and we think it will be allow everyone on the financials to have more clear visibility into what's happening. So, the estimate, it just we ended up at 1.7 and again going forward it will be effectively zero.

Omgz...pro tools $0 revenue!!! GRAVEYARD

Do you guys know what "PCS" stands for? Hint: it's not paid cloud subscriptions.

My post was about cherry picking and coming to a biased conclusion. Not about the arbitrary talking about Pro tools. So, if you want to keep cherry picking my posts, too, to make it sound like I am upset that people are talking about Pro Tools, then if that helps your biased narrative go for it! It's like people really just can't help themselves - must... be... negative...

Quote:
Non-GAAP revenue was $104.1 million for the first quarter, down 10% sequentially and down 28% year-over-year. Excluding the impact of the pre-2011 revenue amortization and the elimination of implied closed contracts or [Indiscernible] or PCS revenue was down 3% sequentially as anticipated resulting from lower 2016 bookings.

We know that $25 million year-over-year decrease in the impact of pre-2011 revenue amortization and elimination of PCS. These adjustments are moving to immaterial levels, providing a clear financial picture and better conversion of the EBITDA to free cash flow.
Its like cherry picking a company's revenues to make it look like they are on the brink of death.
Old 12th May 2017
  #1582
Motown legend
 
Bob Olhsson's Avatar
 

Quote:
Originally Posted by The Byre View Post
The market is changing and the speed of change is accelerating...
The change I've seen is massive growth in the production of industrial training videos which is where Adobe and, at this point, Apple come in.

Entertainment is still using pretty much the same editing tools they have for a couple decades. The big transition was to non-linear editing during the '90s. Today's transition is to more networking but that's only below the highest end projects. The top editing people already know and use Avid. The next generation will be people who are today's assistants to the top people. Editing gear costs chickenfeed compared to the cost of putting something in front of a camera that people will pay to see or of marketing it. It's like talking about different splicing bars during the 1970s!
Old 16th May 2017
  #1583
But this highlight the fundamental problem for Avid, in both audio and Video.

Their survival at this point hinges entirely on being the " industry standard" at the high end.

There is an inflection point in how such network/platform effects get established, or broken. Nobody can predict exactly where that point is.

On the one hand, you have pros at the top bringing in new people on the Avid infrastructure. In the other, there is a seething battle to become the new platform happening all around Avid.

Some of the upstarts will make the move to a higher level, and some will be highly inclined to keep working with the software that got them there, whether it's Logic, FCP, Cubendo, Premier, Davinci,Reaper, what have you.

You never know where that one grain of sand that starts the landslide is.

I work in music production, and I like Pro Tools a lot, but Avid has made some alarmingly bad decisions.

One of them was ignoring the outrage in their forums about pricing, licensing, lack of features, for far too long. Instead they shoved the Collaboration features into Pro Tools, which no one was clamoring for.

I'm not sure about the video side, but Collaboration has been a total dud on the music side.

In the meantime, there are endless threads about show stopping bugs in new versions of Pro Tools.

My take is that Avid saw the need to establish a new market niche, to "differentiate", and they tried to get the company into the hyped "cloud" strategy, which could be sold to the "suits."

Internally, they said, "we have to transform the company ", because the current business lines couldn't support a company of that size.

So, in management's mind, all of this new, expensive, backend infrastructure was an "important new features." Because, if the company "transformation" fails, then the company collapses. Why, the users will be SOL then!

So why are they so pissed?

This is a classic mistake of business management: confusing "features" of a product that are essential to maintain the continued existence of the firm as a going concern, with features that actually benefit the user. Users at best will tolerate the former, but only if the latter is actually delivered.

Just the administrative, technical, marketing, support costs alone that have been incurred to support the convoluted new licensing scheme, alone, must be quite stressful to Avid

Yet for the user, the new licensing system is nothing but an annoying, time wasting cost, that comes with increased prices!

It is very hard for me to get my mind around the social structure at the board and C-level executives, that allows themselves to grant themselves new bonuses, as the ship lists along, struggling to right itself.

I suspect that this sort of disconnect is a big liability for a company that needs to compete in such a dynamic market.

I appreciate the variety of perspectives posters have brought to this thread. Which I have been following for years!
Old 16th May 2017
  #1584
Lives for gear
PT 12 has been dedicated primarily to time consuming features (to implement) that make no difference to me. CC and now Atmos. I am happy for the users who this makes a difference to but after 18 years of PT systems for music I find the feature deficit between PT and even Logic is just not worth it anymore. My HDX system is for sale and I am weaning myself off of PT as my main DAW.

AVID seems incapable of having an audio roadmap or of keeping any timetable for releases - especially meaningful ones. PT was always a great program and for what it was good at then - it still is (stability issues aside). For that I will keep my Native license current. There still is a place for HDX systems but that keeps shrinking.

I hope the dedicated Video users will keep the company afloat - though for at least the hobbiest (me) in video - Resolve (free) is killer.
Old 3 weeks ago
  #1585
Old 1 week ago
  #1586
Lives for gear
The Avid rumour mill seems to be off to the races once again - this time that Hernandez has had enough and will step down, leaving president Jeff Rosica to take over as CEO later this year.

The rumour mill also has a further $30m in wage cuts to be made this year to stay the right side of those covenants.

Another rumour doing the rounds, is that Dolby has been pricing up the value of Avid's audio intellectual property (and no doubt, if they bought the audio IP, that would make audio professionals really happy). Further speculation has Dolby doing a sale-and-lease-back deal on PT, so that Avid can continue to sell audio hardware.

At the same time as these rumours, the share price (chicken or egg?) has fallen in the past four weeks from $5.70 to $4.90.
Old 1 week ago
  #1587
Lives for gear
 

Quote:
Originally Posted by The Byre View Post
The Avid rumour mill seems to be off to the races once again - this time that Hernandez has had enough and will step down, leaving president Jeff Rosica to take over as CEO later this year.

The rumour mill also has a further $30m in wage cuts to be made this year to stay the right side of those covenants.

Another rumour doing the rounds, is that Dolby has been pricing up the value of Avid's audio intellectual property (and no doubt, if they bought the audio IP, that would make audio professionals really happy). Further speculation has Dolby doing a sale-and-lease-back deal on PT, so that Avid can continue to sell audio hardware.

At the same time as these rumours, the share price (chicken or egg?) has fallen in the past four weeks from $5.70 to $4.90.
Dolby would be a good match no?

I'm not sure about the rumour of a leaseback deal of audio hardware though. The Avid S6 control surface is getting Atmos soon. It seems odd to buy what you would imagine is a crown jewel product for Dolby and then lease it back to Avid.
Old 1 week ago
  #1588
Lives for gear
 
sardi's Avatar
 

Quote:
Originally Posted by Marsdy View Post
Dolby would be a good match no?
Maybe for the post guys. I'm thinking not so much for the music crew. :(
Old 3 days ago
  #1589
Lives for gear
 
parkay909's Avatar
This thread is like the walking dead...
Old 3 days ago
  #1590
Lives for gear
 
JSt0rm's Avatar
 

Quote:
Originally Posted by parkay909 View Post
This thread is like the walking dead...
Every time I see a bump I check to make sure I have time download and archive everything I need for the transition time.
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