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Avid postpones Q4 earnings call "indefinitely," accounting under investigation Audio Interfaces
Old 26th February 2013
  #1
Avid postpones Q4 earnings call "indefinitely," accounting under investigation

Probably not good news.
Old 26th February 2013
  #2
Probably not...
Old 26th February 2013
  #3
Gear Addict
 
tedpenn's Avatar
 

Avid "postpones indefinitely" earnings release for Q4

Quote:
Originally Posted by CNBC/AP
BOSTON -- Shares of Avid Technology Inc. tumbled after the company said it was indefinitely postponing a quarterly earnings announcement while it evaluates its accounting.

THE SPARK: Avid Technology had been scheduled to release fourth-quarter earnings on Tuesday and hold a conference call for investors. The Burlington, Mass.-based company said on Monday that it is postponing the announcement but is unable to estimate when its accounting evaluation will be completed.

Avid Technology said it was evaluating "current and historical accounting treatment related to bug fixes, upgrades and enhancements to certain products which the company has provided to certain customers."

The company said it became aware that it needed to examine its accounting during its normal review of financial results for the fourth quarter and 2012.

Avid makes equipment and software for digitally recording music and video. The technology is used to make feature films, music recordings, television shows, live concert tours and news broadcasts.

Analysts surveyed by FactSet expect Avid to post fourth-quarter earnings of 12 cents per share, on average.

SHARE ACTION: Shares of Avid fell 85 cents, or 11 percent, to $6.81 in midday trading. The stock traded at a 52-week high of $11.95 last February and as low as $5.85 in October.
Avid shares drop as tech firm postpones earnings

In other news, a new CEO has been brought in, and employee reviews at glassdoor.com continue to be abysmal at 1.9 out of 5 stars. Avid Technology Reviews | Glassdoor


Yikes. What is going ON over there?
Old 26th February 2013
  #4
Lives for gear
Whats a mil ?

Boy that million dollar pay out to switch seats is looking interesting wonder what they found under the accounting book's rug, bet it wasn't $50m of unreported income !

Let's hope whatever little surprise they found isn't too financially compromising. I have really been looking foward too PTxi !

Kcat
Old 26th February 2013
  #5
Lives for gear
 

Might be better if this thread is moved to the Pro Tools sub forum where more PT users would be aware of it (or tacked on to the never ending PT NAMM thread LOL). Just when I thought they had run out of tricks to play on their shareholders. It will be interesting to see how many sell their stock regardless. Looks like it's best to continue a policy of "wait and see what happens" before upgrading - risking anymore investment in a company that could likely fail, especially now that an analyst can't ask about it's 64 bit rollout timing.
Old 26th February 2013
  #6
Lives for gear
“Avid has had to postpone the fourth quarter 2012 earnings release and subsequent investor conference call, in order to provide additional time for the company to evaluate its current and historical accounting treatment related to bug fixes, upgrades, and enhancements to certain products which the company has provided to certain customers.”

“The need to evaluate the accounting treatment arose during the company’s normal review of its financial results for the fourth quarter and full year 2012. The company is working diligently to complete its evaluation, but is currently unable to estimate when the evaluation will be completed.”


To my ears, that sounds like Avid promised certain high profile customers upgrades and bug-fixes and the costs were quietly swept under the carpet. Now the new team has taken over and are obviously not prepared to have those costs bleed over into future results.

It remains to be seen, if these costs are so large, that a total postponement was decided upon, rather than provisional results, with the qualification of later revisions.
Old 26th February 2013
  #7
Motown legend
 
Bob Olhsson's Avatar
 

I've heard of customized video software being sold to large broadcasters.
Old 26th February 2013
  #8
Lives for gear
 

Quote:
Avid makes equipment and software for digitally recording music and video. The technology is used to make feature films, music recordings, television shows, live concert tours and news broadcasts.
Avid doesn't MAKE anything.

They are a Wall St shell corporation that acquires companies who make wonderful products and then bleeds them dry by relieving the staff and development team while maintaining an iron grip on the intellectual property. All so they can maximize short-term profits, but when the technology advances they will be left behind as there is nobody remaining to keep those products valid. It happened when Gibson acquired OpCode, now being repeated when Avid acquired Sibelius. Bastards
Old 26th February 2013
  #9
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Vintageidiot's Avatar
Quote:
Originally Posted by The Real MC View Post
Avid doesn't MAKE anything.

They are a Wall St shell corporation that acquires companies who make wonderful products and then bleeds them dry by relieving the staff and development team while maintaining an iron grip on the intellectual property. All so they can maximize short-term profits, but when the technology advances they will be left behind as there is nobody remaining to keep those products valid. It happened when Gibson acquired OpCode, now being repeated when Avid acquired Sibelius. Bastards
Pimps, as the world turns. America, once a great innovator, now cannibalizes its corporations....
Old 26th February 2013
  #10
Gear Addict
 

I heard about this on the radio this morning (WRKO). It just makes you pissed off at the whole system and everyone in it, and feel bad for the innovative software engineers getting screwed over. Its a disgusting propagation of greed and it stems from the corrupt and greedy government.
Old 26th February 2013
  #11
I dunno about that. It's hardly large corporations or the government who are solely driving this phenomenon. For many smaller (and therefore likely more innovative) companies, the only way to really get a payday (as apposed to just a paycheck) for all your hard work to create a new ompany is to get purchased. It's sort of the Holy Grail for small companies to get some sort of payout that makes the creation of a new company worth the effort and risk.

The odds otherwise are generally pretty against you if you don't either get venture capital or find a Sugar Daddy to pimp your ride. Otherwise it's easy to get whacked in various ways. You always stay small because you are small. Or you manage to create the beginnings of a market and then someone with much more resources comes along once it's there and takes it from you, etc...

So lots of smaller and medium sized companies are actively looking to get acquired, they aren't being dragged to the alter.
Old 27th February 2013
  #12
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T_R_S's Avatar
you can only p'off long time customers - kick them, the give em a sucker punch em so many times before they bail.
Old 27th February 2013
  #13
Gear Guru
 
Animus's Avatar
 

Quote:
Originally Posted by Brock Mixwell View Post
Newman Ferrara LLP Announces Investigation of Avid Technology, Inc.

Newman Ferrara LLP Announces Investigation of Avid Technology, Inc.<AVID.O> | Reuters
Interesting. Maybe someone had their hand in the cookie jar.
Old 27th February 2013
  #14
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gear is cool's Avatar
Definition of AVID

desirous to the point of greed : urgently eager : greedy

Avid - Definition and More from the Free Merriam-Webster Dictionary

Old 27th February 2013
  #15
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Empire Prod's Avatar
 

Bad news for Avid is good news for Pro Tools users. The sooner that company gets either bought up or sells off Pro Tools the better.
Old 27th February 2013
  #16
Gear Addict
 

this may be OT, but being a finance professional (investment banker actually), i am quite amazed at american engineers' sophistication in finance, business, and general commercial issues. compared to where i live, it's like ... wow.
Old 27th February 2013
  #17
Deleted User
Guest
WOW

http://pdf.reuters.com/htmlnews/8kne...226:nBw266909a

NEW YORK--(Business Wire)--
Newman Ferrara LLP is conducting an investigation on behalf of shareholders of
Avid Technology, Inc. ("Avid") (Nasdaq) ("AVID") into potential violations of
federal securities laws and breaches of fiduciary duty by Avid and certain of
its officers and directors.

On February 25, 2013, Avid announced that it is postponing its fourth-quarter
earnings release, originally scheduled for February 26, indefinitely due to
accounting issues. Specifically, Avid stated that it needs "additional time for
the Company to evaluate its current and historical accounting treatment related
to bug fixes, upgrades and enhancements to certain products which the Company
has provided to certain customers." Avid announced that it is "unable to
estimate when the evaluation will be completed." On this news, shares of Avid
stock dropped approximately 12% in value to a February 25, 2013 trading price of
$6.71 per share.

Shareholders of Avid stock may contact Newman Ferrara attorneys Jeffrey Norton
([email protected]) or Roy Shimon ([email protected]) by email or call (212)
619-5400 to discuss this investigation and their rights as Avid shareholders.

Whistleblowers: Persons with knowledge that may aid in the investigation of this
matter are encouraged to contact the firm. Under the Dodd-Frank Wall Street
Reform Bill, whistleblowers are protected from employer retaliation and may be
entitled to as much as 30 percent of the recovery if the information provided
leads to a successful action.

Newman Ferrara maintains a multifaceted practice based in New York City with
attorneys specializing in complex commercial and multi-party litigation,
securities fraud and shareholder litigation, consumer protection, civil rights,
and real estate. For more information, please visit the firm website at
Manhattan Lawyer | Real Estate & Litigation Attorney in Manhattan, NY.

Newman Ferrara LLP
Jeffrey M. Norton
Roy Shimon
212-619-5400
Old 27th February 2013
  #18
Whoops
Old 27th February 2013
  #19
Lives for gear
 
The Beatsmith's Avatar
 

avid.com is down...
Old 27th February 2013
  #20
Quote:
Originally Posted by The Beatsmith View Post
avid.com is down...
Indeed!

Avid.com is down
The Media Composer and Symphony support forums are down
The DUC is still up, but here at least it's running as slow as is possible...

I really hope it's just an unfortunate coincidence...
Old 27th February 2013
  #21
Lives for gear
 

Waiting for an announcement that Apple acquired Pro Tools and will release a new Logic Tools music software soon.
Old 27th February 2013
  #22
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spaceman's Avatar
 

Quote:
Originally Posted by The Beatsmith View Post
avid.com is down...
? ? I can access it fine where i live ( Paris ). Maybe their servers are just overloaded...
Old 27th February 2013
  #23
Avid.com is back up here too.

Hopefully it was just bad timing on some site maintenance...
Old 27th February 2013
  #24
Lives for gear
Quote:
Originally Posted by Ran_ks View Post
Waiting for an announcement that Apple acquired Pro Tools and will release a new Logic Tools music software soon.
Anybody will do! Anyone who is capable of taking a 55% gross profit and not losing it all with 42 prestige offices around the World, does not sack the creatives and replace them with an over-blown sales force (who seem to have made silly promises they couldn't keep) does not buy basket-case companies, yet sells off the consumer division for pennies and then pretends that all is well will do!
Old 27th February 2013
  #25
Lives for gear
 

You know? I almost miss Digidesign.
Old 27th February 2013
  #26
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drew's Avatar
Quote:
Originally Posted by Alekto View Post
You know? I almost miss Digidesign.
Digidesign has been gone since 1996. That's when Avid bought them.
Old 27th February 2013
  #27
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dubrichie's Avatar
Another one, Finkelstein Thompson LLP Announces Investigation Of Avid Technology, Inc.

The vultures are circling overhead...
Old 27th February 2013
  #28
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Quote:
Originally Posted by gear is cool View Post
Definition of AVID

desirous to the point of greed : urgently eager : greedy

Avid - Definition and More from the Free Merriam-Webster Dictionary

nice try at the irony, but it's the 2nd definition which is how avid is commonly used:

: characterized by enthusiasm and vigorous pursuit <avid readers>
Old 27th February 2013
  #29
Lives for gear
 

Quote:
Originally Posted by tonnu View Post
this may be OT, but being a finance professional (investment banker actually), i am quite amazed at american engineers' sophistication in finance, business, and general commercial issues. compared to where i live, it's like ... wow.
definitely not reflected in that musicians friend thread
Old 27th February 2013
  #30
Quote:
Originally Posted by Brian! View Post
definitely not reflected in that musicians friend thread
I think he's being ironic. Wait.... Maybe you're being doubley ironic... Maybe I'm being... Damn irony. So many layers.
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