Avid Technology, Inc. (AVID) SEC Filing 10-Q Quarterly report for the period ending Tuesday, June 30, 2020

Avid Technology, Inc.

CIK: 1054554 Ticker: AVID

Exhibit 99.1
Avid Technology Announces Q2 2020 Results

68% Year-Over-Year Subscription Revenue Growth Driven by Continued Increase in Paid Subscriptions with Net Increase of 24,000 Subscriptions in the Quarter

Operating Income Increased 214% Year-Over-Year from Improved Gross Margin and Significantly Reduced Operating Expenses

BURLINGTON, Mass., August 3, 2020 -- Avid® (NASDAQ: AVID), a leading technology provider that powers the media and entertainment industry, today announced its second quarter 2020 financial results.

During the second quarter, the Recurring Revenue components of the company’s business were resilient despite the COVID-19 global pandemic. The Company reported record subscription revenue of $16.4 million, up 68% year-over-year and maintenance revenue was stable, resulting in 8.5% year-over-year growth in Annual Contract Value. Also, in the quarter, Avid significantly improved its profitability as a result of higher gross margin coupled with a more efficient cost structure. The year-over-year improvement in gross margin of 760 basis points was a result of a greater portion of revenue coming from higher-margin software in the quarter and benefits from expense reductions in non-material cost of sales. Profitability was also enhanced by the $11 million year-over-year reduction in operating expenses in the quarter, which the Company will continue to closely manage towards the target of at least a $30 million reduction for fiscal 2020.

For the second quarter, total revenue declined year-over-year, as the non-Recurring Revenue portions of the Company’s business related to product and professional services continued to be negatively impacted by weaker demand as a result of the COVID-19 global pandemic, which has caused the postponement or cancellation of many live music and major sporting events, and the temporary suspension of many film and television productions.

During the quarter, the Company repaid the remaining $28.9 million of outstanding convertible notes at their maturity using available cash. As of June 30, 2020, the Company had $55.7 million in cash and cash equivalents. The Company’s leverage ratio under the financing agreement dropped to 4.3x as of June 30, 2020, as a result of the year-over-year increase in Adjusted EBITDA in the quarter, and the Company remains well below the covenant levels in the financing agreement as amended in May 2020.

Second Quarter 2020 Financial and Business Highlights

Subscription revenue was $16.4 million, up 68.3% year-over-year.
Paid Cloud-enabled software subscriptions increased by approximately 24,000 during the quarter, to approximately 242,000 at June 30, 2020, an increase of 63.9% year-over-year in total paid subscriptions.
Subscription and Maintenance revenue was $47.0 million, up 13.5% year-over-year.
Total revenue was $79.3 million, down (19.7%) year-over-year.
Gross margin was 65.0%, up 760 basis points year-over-year. Non-GAAP Gross Margin was 65.4%, up 600 basis points year-over-year.
Operating expenses were $43.5 million, a decrease of (19.6%) year-over-year. Non-GAAP Operating Expenses were $40.5 million, a decrease of (21.7%) year-over-year.
Operating income was $8.1 million, an increase of 214.0% year-over-year. Non-GAAP Operating Income was $11.3 million, an increase of 65.2% year-over-year.
Adjusted EBITDA was $13.5 million, an increase of 43.3% year-over-year. Adjusted EBITDA Margin was 17.0%, up 750 basis points year-over-year.
Net income per common share was $0.04, up from a loss per common share of ($0.25) in the second quarter of 2019. Non-GAAP Net Income per Share was $0.12, up from Non-GAAP Net Income per Share of $0.02 in the second quarter of 2019.

The following information was filed by Avid Technology, Inc. (AVID) on Monday, August 3, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Avid Technology, Inc.'s 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Consoldated Statements Of Stockholders' Deficit Statement
Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Comprehensive Income
Consolidated Statements Of Operations
Contingencies (Details)
Contingencies (Notes)
Contingencies (Tables)
Fair Value Measurements (Details)
Fair Value Measurements (Notes)
Fair Value Measurements (Tables)
Financial Information (Notes)
Financial Information (Policies)
Inventories (Details)
Inventories (Notes)
Inventories (Tables)
Leases Leases (Details)
Leases Leases (Notes)
Leases Leases (Tables)
Long-Term Debt And Credit Agreement (Notes)
Long-Term Debt And Credit Agreement (Tables)
Long-Term Debt And Credit Agreement Debt Disclosure (Tables)
Long-Term Debt And Credit Agreement Debt Disclosurre (Details)
Net Income Per Share Earnings Per Share (Details)
Net Income Per Share Earnings Per Share (Notes)
Net Income Per Share Earnings Per Share (Tables)
Other Long-Term Liabilities (Details)
Other Long-Term Liabilities (Notes)
Other Long-Term Liabilities (Tables)
Restructuring Costs And Accruals (Details)
Restructuring Costs And Accruals (Notes)
Restructuring Costs And Accruals (Tables)
Revenue (Tables)
Revenue Contract Asset (Details)
Revenue Deferred Revenue Activity (Details)
Revenue Remaining Performance Obligations (Details)
Revenue Revenue By Geographic Regions (Details)
Revenue Revenue By Type (Details)
Stockholders' Equity (Notes)
Stockholders' Equity (Tables)
Stockholders' Equity Non-Vested Restricted Stock (Details)
Stockholders' Equity Options Activity (Details)
Stockholders' Equity Stock-Based Compensation Expense (Details)

Material Contracts, Statements, Certifications & more

Avid Technology, Inc. provided additional information to their SEC Filing as exhibits

Ticker: AVID
CIK: 896841
Form Type: 10-Q Quarterly Report
Accession Number: 0000896841-20-000160
Submitted to the SEC: Mon Aug 03 2020 5:05:29 PM EST
Accepted by the SEC: Mon Aug 03 2020
Period: Tuesday, June 30, 2020
Industry: Prepackaged Software

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