Avid Technology Issues Guidance for Full-Year 2020
November 19 2019 - 3:15PM
Avid® (NASDAQ: AVID), a leading technology provider that powers the
media and entertainment industry, today issued full-year 2020
guidance during its 2019 Investor Day.
($ millions, except per share amounts) |
Full-Year 2020 Guidance |
Revenue |
$417 - $437 |
Subscription and Maintenance Revenue |
$180 - $190 |
Adjusted EBITDA |
$66 - $74 |
Free Cash Flow |
$27 - $35 |
Non-GAAP Net Income Per Share |
$0.84 - $0.93 |
|
|
All guidance presented by the Company is inherently uncertain
and subject to numerous risks and uncertainties. Avid’s actual
future results of operations could differ materially from those
shown in the table above. For a discussion of some of the key
assumptions underlying the guidance, as well as the key risks and
uncertainties associated with these forward-looking statements,
please see “Forward-Looking Statements” below.
Non-GAAP Financial Measures
Avid includes non-GAAP financial measures in this press release,
including Adjusted EBITDA, Free Cash Flow, and Non-GAAP Net Income
per Share. Avid believes the non-GAAP financial measures provided
in this release provide helpful information to investors with
respect to evaluating the Company’s performance. Unless noted, all
financial information is reported based on actual exchange rates.
Definitions of the non-GAAP financial measures are included in our
Form 8-K filed on November 7, 2019.
This press release also includes forward-looking non-GAAP
financial measures, including Adjusted EBITDA, Free Cash Flow, and
Non-GAAP Net Income Per Share. Reconciliations of these
forward-looking non-GAAP financial measures are not included in the
press release due to the high variability and difficulty in making
accurate forecasts and projections of some of the excluded
information, together with some of the excluded information not
being ascertainable or accessible at this time. As a result, the
Company is unable to quantify certain amounts that would be
required to be included in the most directly comparable GAAP
financial measure without unreasonable efforts.
Forward-Looking Statements
Certain information provided in this press release include
forward-looking statements that involve risks and uncertainties,
including projections and statements about our anticipated plans,
objectives, expectations and intentions. Among other things, this
press release includes estimated results of operations for the year
ending December 31, 2020, which estimates are based on a variety of
assumptions about key factors and metrics that will determine our
future results of operations, including, for example, completion of
the transition of our hardware supply chain, anticipated market
uptake of new products and market-based cost inflation. Other
forward-looking statements include, without limitation, statements
based upon or otherwise incorporating judgments or estimates
relating to future performance such as future operating results and
expenses; earnings; backlog; product mix and free cash flow;
Recurring Revenue and Annual Contract Value; our future strategy
and business plans; our product plans, including products under
development, such as cloud and subscription based offerings; our
ability to raise capital and our liquidity. The projected future
results of operations, and the other forward-looking statements in
this release, are based on current expectations as of the date of
this release and subject to known and unknown risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements, including but
not limited to the effect on our sales, operations and financial
performance resulting from: our liquidity; our ability to execute
our strategic plan, including our cost saving strategies and
transition of our hardware supply chain, and meet customer needs;
our ability to retain and hire key personnel; our ability to
produce innovative products in response to changing market demand,
particularly in the media industry; our ability to successfully
accomplish our product development plans; competitive factors;
history of losses; fluctuations in our revenue based on, among
other things, our performance and risks in particular geographies
or markets; our higher indebtedness and ability to service it and
meet the obligations thereunder; restrictions in our credit
facilities; our move to a subscription model and related effect on
our revenues and ability to predict future revenues; fluctuations
in subscription and maintenance renewal rates; elongated sales
cycles; fluctuations in foreign currency exchange rates; seasonal
factors; adverse changes in economic conditions; variances in our
revenue backlog and the realization thereof; and the possibility of
legal proceedings adverse to our company. Moreover, the business
may be adversely affected by future legislative, regulatory or
other changes, including tax law changes, as well as other
economic, business and/or competitive factors. The risks included
above are not exhaustive. Other factors that could adversely affect
our business and prospects are set forth in our public filings with
the SEC. Forward-looking statements contained herein are made only
as to the date of this press release and we undertake no obligation
to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as
required by law.
About Avid
Avid delivers the most open and efficient media platform,
connecting content creation with collaboration, asset protection,
distribution, and consumption. Avid’s preeminent customer community
uses Avid’s comprehensive tools and workflow solutions to create,
distribute and monetize the most watched, loved and listened to
media in the world—from prestigious and award-winning feature films
to popular television shows, news programs and televised sporting
events, and celebrated music recordings and live concerts. With the
most flexible deployment and pricing options, Avid’s
industry-leading solutions include Media Composer®, Pro Tools®,
Avid NEXIS®, MediaCentral®, iNEWS®, AirSpeed®, Sibelius®, Avid
VENUE™, Avid FastServe®™, Maestro™, and PlayMaker™. For more
information about Avid solutions and services, visit www.avid.com,
connect with Avid on Facebook, Instagram, Twitter, YouTube,
LinkedIn, or subscribe to Avid Blogs.
© 2019 Avid Technology, Inc. All rights reserved. Avid, the Avid
logo, Avid NEXIS, Avid FastServe, AirSpeed, iNews, Maestro,
MediaCentral, Media Composer, NewsCutter, PlayMaker, Pro Tools,
Avid VENUE, and Sibelius are trademarks or registered trademarks of
Avid Technology, Inc. or its subsidiaries in the United States
and/or other countries. All other trademarks are the property of
their respective owners. Product features, specifications, system
requirements and availability are subject to change without
notice.
Contacts
Investor contact:
Whit Rappole
Avid
ir@avid.com
(978) 275-2032
PR contact:
Jim Sheehan
Avid
jim.sheehan@avid.com
(978) 640-3152
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