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

Avid Technology, Inc.

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CIK: 1054554 Ticker: AVID

Exhibit 99.1
Avid Technology Announces Q3 2020 Results

14.1% Sequential Revenue Growth as End Markets Begin to Recover from COVID-19 Downturn

73.9% Year-Over-Year Subscription Revenue Growth Driven by Net Increase of Approximately 27,000 Paid Subscriptions in the Quarter

Operating Income Increased 56.1% Year-Over-Year Driven by Improved Gross Margin and Significantly Reduced Operating Expenses

$18.0 million in Net Cash Provided by Operating Activities Leading to Free Cash Flow of $15.5 million in the Quarter


BURLINGTON, Mass., October 28, 2020 -- Avid® (NASDAQ: AVID), a leading technology provider that powers the media and entertainment industry, today announced its financial results for the third quarter ended September 30, 2020.

Total revenue increased 14.1% sequentially in the third quarter, while declining slightly year-over-year, as many of Avid’s end markets showed initial signs of recovery from the COVID-19 pandemic. During the third quarter, the Recurring Revenue components of the Company’s business remained strong. The Company reported record subscription revenue of $17.9 million, up 73.9% year-over-year, resulting in 6.5% year-over-year growth in Annual Contract Value. Also, in the third quarter, Avid significantly improved its profitability as a result of a 250 basis point year-over-year improvement in gross margin coupled with a ($4.3) million reduction in operating expenses that yielded a 56.1% year-over-year improvement in operating income and an Adjusted EBITDA Margin of 21.4%. The strong operating results for the third quarter resulted in Free Cash Flow of $15.5 million.

The non-Recurring Revenue portions of the Company’s business related to product and professional services showed strong signs of sequential recovery during the third quarter, although they continued to be negatively impacted year-over-year by weaker demand as a result of the COVID-19 pandemic. Product revenue from perpetual software licenses and integrated solutions increased 29.5% sequentially to $35.8 million in the third quarter.

During the third quarter, the Company repaid the $22.0 million balance on its revolving credit facility using available cash. As of September 30, 2020, the Company had $49.1 million in cash and cash equivalents. The Company’s leverage ratio under its financing agreement decreased to 3.4x as of September 30, 2020 as a result of the repayment of borrowings under the revolving credit facility using the Company’s strong Free Cash Flow generation in the quarter, and the year-over-year increase in Adjusted EBITDA in the quarter.

Third Quarter 2020 Financial and Business Highlights

•Subscription revenue was $17.9 million, up 73.9% year-over-year.
•Paid Cloud-enabled software subscriptions increased by approximately 27,000 during the quarter, to approximately 269,000 at September 30, 2020, an increase of 58.1% year-over-year in total paid subscriptions.
•Subscription and Maintenance revenue was $48.7 million, up 11.6% year-over-year.
•Total revenue was $90.4 million, up 14.1% sequentially, and down (3.2%) year-over-year.
•Gross margin was 64.4%, up 250 basis points year-over-year. Non-GAAP Gross Margin was 64.9%, up 280 basis points year-over-year.
•Operating expenses were $45.1 million, a decrease of (8.7%) year-over-year. Non-GAAP Operating Expenses were $41.4 million, a decrease of (12.6%) year-over-year.
•Operating income was $13.1 million, an increase of 56.1% year-over-year. Non-GAAP Operating Income was $17.3 million, an increase of 61.3% year-over-year.

The following information was filed by Avid Technology, Inc. (AVID) on Wednesday, October 28, 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)
Financial Information New Accounting Pronouncements Adopted (Details)
Inventories (Details)
Inventories (Notes)
Inventories (Tables)
Leases Leases (Details)
Leases Leases (Notes)
Leases Leases (Tables)
Leases Maturity Schedule (Details)
Leases Supplemental Balance Sheet Information (Details)
Long-Term Debt And Credit Agreement (Notes)
Long-Term Debt And Credit Agreement (Tables)
Long-Term Debt And Credit Agreement Debt Disclosure (Details)
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)
Net Income Per Share Weighted Average Shares Outstanding (Details)
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

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification
Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification
Exhibit 32.1: Section 1350 Certification
Ticker: AVID
CIK: 896841
Form Type: 10-Q Quarterly Report
Accession Number: 0000896841-20-000191
Submitted to the SEC: Fri Oct 30 2020 4:01:21 PM EST
Accepted by the SEC: Fri Oct 30 2020
Period: Wednesday, September 30, 2020
Industry: Prepackaged Software

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