Avid Technology Announces Q4 2016 Results and Issues Q1 and FY 2017 Guidance

Met or Exceeded Guidance for All Metrics and Delivered Positive Adjusted Free Cash Flow in Q4

Strong Sequential Bookings Growth

Efficiency Program Reduces Operating Expenses 29% Year-over-Year in Q4

Positive Adjusted Free Cash Flow Expected in 2017

BURLINGTON, Mass., March 23, 2017 (GLOBE NEWSWIRE) -- Avid® (Nasdaq:AVID) announced its fourth quarter and full year 2016 financial results today and provided financial guidance for first quarter and full year 2017.

Highlights of Fourth Quarter 2016 Results

• GAAP and Non-GAAP Revenue was $115.3 million, in-line with guidance and down $23.5 million and $24.4 million year-over-year for GAAP and Non-GAAP, respectively. GAAP and Non-GAAP Revenue was down $3.7 million sequentially.
• GAAP Gross Margin was 60.3%, up 1.2 percentage points year-over-year and down 3.1 percentage points sequentially; non-GAAP Gross Margin was 61.9%, up 1.1 percentage points year-over-year and down 3.2 percentage points sequentially.
• GAAP Operating Expenses were $58.5 million, down $23.8 million year-over-year and down $8.4 million sequentially; Non-GAAP Operating Expenses were $50.1 million, below the guidance range, down $21.2 million year-over-year and down $8.3 million sequentially.
• GAAP Net Income was $5.2 million, up $9.6 million year-over-year and down $3.9 million sequentially; Adjusted EBITDA was $25.2 million, above the guidance range, up $8.2 million year-over-year and up $2.4 million sequentially.  
• GAAP Net Cash used in Operating Activities was $270 thousand, down $2.3 million year-over-year and an improvement of $3.6 million sequentially; Adjusted Free Cash Flow was $2.0 million, in-line with guidance, down $0.3 million year-over-year and an improvement of $4.6 million sequentially.
• Bookings and Constant Currency Bookings were $125.3 million and $134.5 million, in-line with guidance and down $67.8 million and $66.5 million year-over-year, respectively. The declines were attributable to the large Sinclair Enterprise deal booked in December 2015. Bookings and Constant Currency Bookings were up sequentially $35.7 million and $39.7 million, respectively.

Avid Everywhere Momentum Continues

• More than 42,700 enterprise users on the MediaCentral platform at the end of 2016, a 29% increase from the beginning of the year
• More than 60,700 paying individual, cloud-enabled subscribers, a substantial majority of whom are new customers to Avid, at the end of 2016, a 2.4x increase since the beginning of the year
     -   Added more than 10,700 paying subscribers in Q4, representing a 21% increase from the end of Q3 2016, and largest quarterly paying subscriber increase in Avid’s history 
• Digital bookings in Q4 2016 increased 27% year-over-year and 46% sequentially; digital bookings in 2016 increased 43% from 2015.
• Bookings attributable to recurring revenue represented 45% of total bookings in Q4 2016, up from 39% in Q3 2016; bookings attributable to recurring revenue represented 38% of total bookings in 2016, flat from 2015, which included the impact of the large Sinclair Enterprise deal.

“Thanks to strong execution in key focus areas we met or exceeded quarterly guidance for all of our metrics and delivered positive Adjusted Free Cash Flow,” said Louis Hernandez, Jr, Chairman and CEO of Avid. “We saw sequential bookings growth across all customer tiers and geographies. This performance included a rebound in storage, an improvement in Orad applications, continued growth of cloud-enabled subscribers and digital sales, and traction on enterprise deals such as the global enterprise and cloud agreement with Al Jazeera. Execution on our efficiency program drove a 29% year-over-year reduction in operating expenses. We are confident that we can complete the remaining efficiency program in 2017, which includes more than $30 million of additional annual savings.

“Our Q4 results reveal an emerging financial model that will be more predictable and have a significantly improved Adjusted Free Cash Flow conversion of Adjusted EBITDA.  This is a direct result of our achievements with the transformation: the roll-off of non-marketed products; completion of the efficiency program; and the cessation by the second quarter of 2017 of pre-2011 amortization and elimination of implied PCS revenue. As Avid’s transformation comes to a close, we are quickly preparing for the next phase of our plan by focusing on investments and partnerships that will drive our cloud-enabled growth strategy,” Mr. Hernandez concluded.

Financial Guidance

Avid’s first quarter and full year 2017 financial guidance are set forth in the table below.

The guidance range for Q1 includes the impact of the commercial agreement we announced with Beijing Jetsen Technology Co., Ltd. (“Jetsen”) on January 31, 2017. As our exclusive distributor in the region, Jetsen has committed to minimum bookings and cash payments of $76 million over three years, which includes annual growth of approximately 15%. Guidance ranges for revenue are informed by our recurring revenue and revenue backlog, as well as expectations for our bookings performance. Additional cost savings related to the continued execution of our efficiency program are reflected in the guidance ranges for Non-GAAP Operating Expenses, Adjusted EBITDA and Adjusted Free Cash Flow. Guidance ranges imply a significantly improved Adjusted Free Cash Flow conversion of Adjusted EBITDA, due to our improving core operating margins and reduction of the impact related to pre-2011 amortization and elimination of implied PCS revenue.

“As we head into 2017, we are encouraged by the core trends in our Q4 performance which provides important visibility into our guidance for 2017. We believe our amended noteholder agreement will provide Avid with greater financial flexibility as we complete the transformation and deliver a scalable and sustainably profitable business,” said Brian E. Agle, Avid’s Senior Vice President and Chief Financial Officer.

Q1 and Full Year 2017 Guidance

	(in $ millions)	Q1 2017	Full Year 2017
Bookings (Constant Currency)		$162-$176
Bookings		$154-$168
Revenue		$100-$110	$405-$435
Non-GAAP Operating Expenses		$54-$58	$205-$220
Adjusted EBITDA		$8-$14	$45-$55
Adjusted Free Cash Flow		($2)-$6	$7-$20

All guidance presented by the Company is inherently uncertain and subject to numerous risks and uncertainties. Avid’s actual future results of operations and cash flows could differ materially from those shown in the tables 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 as well as the Avid Technology Fourth Quarter and Full Year 2016 Business Update presentation posted on Avid’s investor relations website.

Avid includes non-GAAP financial measures in this press release, including non-GAAP Revenue, Adjusted EBITDA, Adjusted Free Cash Flow, non-GAAP Operating Income (loss), non-GAAP Operating Expenses and non-GAAP Gross Margin. The Company also includes the operational metric of bookings, revenue backlog and recurring revenue bookings in this release. Avid believes the non-GAAP financial measures and operational metrics 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 today. Reconciliations of the non-GAAP financial measures in this release to the Company's comparable GAAP financial measures for the periods presented are set forth below and are also included in the supplemental financial and operational data sheet available on our investor relations webpage at ir.avid.com, which also includes definitions of the operational metrics.

The earnings release also includes forward-looking non-GAAP financial measures, including Adjusted EBITDA, non-GAAP Operating Expenses and Adjusted Free Cash Flow. Reconciliations of these forward-looking non-GAAP financial measures were not included in the Earnings 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.

Conference Call

A conference call to discuss Avid's financial results for the fourth quarter and full year 2016 will be held on Thursday, March 23, 2017 at 5:00 p.m. ET. The call will be open to the public and can be accessed by dialing 719-325-2278 and referencing confirmation code 2768857. You may also listen to the call on the Avid Investor Relations website. To listen via the website, go to the events tab at ir.avid.com for complete details prior to the start of the conference call. A replay of the call will also be available on the Avid Investor Relations website shortly after the completion of the call. 

Forward-Looking Statements

Certain information provided in this press release, including the tables attached hereto, 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 2017, 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, anticipated market uptake of new products, realization of identified efficiency programs 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; bookings; backlog; revenue backlog conversion rate; product mix and free cash flow; our long-term and recent cost savings initiatives and the anticipated benefits therefrom; our future strategy and business plans; our product plans, including products under development, such as cloud and subscription based offerings; our liquidity and ability to raise capital; the anticipated benefits of the Orad acquisition, including estimated synergies, including effects on future financial and operating results; 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 cost savings initiatives, 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; 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; the identified material weaknesses in our internal control over financial reporting; and the possibility of legal proceedings adverse to our company. Moreover, the business may be adversely affected by future legislative, regulatory or 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
Through Avid Everywhere™, 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 Pro Tools®, Media Composer®, Avid NEXIS™, Interplay®, ProSet™ and RealSet™, Maestro™, PlayMaker™, and Sibelius®. 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.

© 2017 Avid Technology, Inc. All rights reserved. Avid, the Avid logo, Avid Everywhere, Avid NEXIS, iNEWS, Interplay, AirSpeed, MediaCentral, Media Composer, PhaseFind, Pro Tools, ScriptSync and Sibelius are trademarks or registered trademarks of Avid Technology, Inc. or its subsidiaries in the United States and/or other countries. The Interplay name is used with the permission of the Interplay Entertainment Corp. which bears no responsibility for Avid products. Product features, specifications, system requirements and availability are subject to change without notice. 

AVID TECHNOLOGY, INC.
Condensed Consolidated Statements of Operations
(unaudited - in thousands, except per share data)
			Three Months Ended								Twelve Months Ended
			December 31,								December 31,
				2016				2015				2016				2015
Net revenues:
	Products		$	59,269			$	91,247			$	283,110			$	336,371
	Services			56,026				47,559				228,820				169,224
	Total net revenues			115,295				138,806				511,930				505,595
Cost of revenues:
	Products			29,174				39,465				111,579				131,881
	Services			14,702				15,447				59,828				61,501
	Amortization of intangible assets			1,950				1,950				7,800				4,063
	Total cost of revenues			45,826				56,862				179,207				197,445
Gross profit				69,469				81,944				332,723				308,150
Operating expenses:
	Research and development			18,773				24,190				81,564				95,898
	Marketing and selling			21,311				30,091				110,338				122,511
	General and administrative			13,112				21,463				61,471				74,109
	Amortization of intangible assets			363				786				2,498				2,354
	Restructuring costs, net			4,959				5,766				12,837				6,305
	Total operating expenses			58,518				82,296				268,708				301,177
Operating income (loss)				10,951				(352	)			64,015				6,973
Interest and other expense, net				(4,622	)			(1,727	)			(18,671	)			(6,408	)
Income (loss) before income taxes				6,329				(2,079	)			45,344				565
Provision for (benefit from) income taxes				1,108				2,306				(2,875	)			(1,915	)
Net income (loss)			$	5,221			$	(4,385	)		$	48,219			$	2,480
Net income (loss) per common share - basic and diluted			$	0.13			$	(0.11	)		$	1.20			$	0.06
Weighted-average common shares outstanding - basic				40,637				39,439				40,021				39,423
Weighted-average common shares outstanding - diluted				40,746				39,439				40,176				40,380

AVID TECHNOLOGY, INC.
Reconciliations of GAAP financial measures to Non-GAAP financial measures
(unaudited - in thousands)
		Three Months Ended								Twelve Months Ended								Three Months Ended								Three Months Ended
		December 31,								December 31,								September 30,								March 31,
Non-GAAP revenue			2016				2015				2016				2015				2016				2015				2016				2015
GAAP revenue		$	115,295			$	138,806			$	511,930			$	505,595			$	119,019			$	137,436			$	143,547			$	119,586
Amortization of acquired deferred revenue			-				858				594				858				-				-				269				-
Non-GAAP revenue			115,295				139,664				512,524				506,453				119,019				137,436				143,816				119,586
Pre-2011 Revenue			2,268				12,017				24,772				58,543				5,368				13,635				9,338				17,483
Elim PCS			8,100				7,000				52,900				22,500				12,000				15,500				17,600				-
Non-GAAP Revenue w/o Pre-2011 and Elim			104,927				120,647				434,852				425,410				101,651				108,301				116,878				102,103
Non-GAAP gross profit
GAAP gross profit			69,469				81,944				332,723				308,150				75,391				87,814				100,063				72,094
Amortization of acquired deferred revenue			-				858				594				858				-				-				269				-
Amortization of intangible assets			1,950				1,950				7,800				4,063				1,950				1,950				1,950				-
Stock-based compensation			(48	)			171				440				823				157				183				179				254
Non-GAAP gross profit			71,371				84,923				341,557				313,894				77,498				89,947				102,461				72,348
Pre-2011 Revenue			2,268				12,017				24,772				58,543				5,368				13,635				9,338				17,483
Elim PCS			8,100				7,000				52,900				22,500				12,000				15,500				17,600				-
Non-GAAP gross profit w/o Pre-2011 and Elim			61,003				65,906				263,885				232,851				60,130				60,812				75,523				54,865
Non-GAAP operating expenses
GAAP operating expenses			58,518				82,296				268,708				301,177				66,887				73,409				74,316				70,979
Less Amortization of intangible assets			(363	)			(786	)			(2,498	)			(2,354	)			(567	)			(786	)			(786	)			(374	)
Less Stock-based compensation			(1,847	)			(1,612	)			(7,475	)			(8,691	)			(1,571	)			(2,206	)			(1,919	)			(2,208	)
Less Restructuring costs, net			(4,959	)			(5,766	)			(12,837	)			(6,305	)			(5,314	)			-				(2,777	)			-
Less Restatement costs			(109	)			(51	)			(295	)			(1,039	)			(38	)			(287	)			(80	)			(1,807	)
Less Acquisition, integration and other costs			(129	)			(1,595	)			(587	)			(9,232	)			336				(1,965	)			(515	)			(2,342	)
Less Efficiency program costs			(967	)			(1,144	)			(4,305	)			(1,144	)			(1,338	)			-				(716	)			-
Non-GAAP operating expenses			50,144				71,342				240,711				272,412				58,395				68,165				67,523				64,248
Non-GAAP operating income
GAAP operating income (loss)			10,951				(352	)			64,015				6,973				8,504				14,405				25,747				1,115
Amortization of acquired deferred revenue			-				858				594				858				-				-				269				-
Amortization of intangible assets			2,313				2,736				10,298				6,417				2,517				2,736				2,736				374
Stock-based compensation			1,799				1,783				7,915				9,514				1,728				2,389				2,098				2,462
Restructuring costs, net			4,959				5,766				12,837				6,305				5,314				-				2,777				-
Restatement costs			109				51				295				1,039				38				287				80				1,807
Acquisition, integration and other costs			129				1,595				587				9,232				(336	)			1,965				515				2,342
Efficiency program costs			967				1,144				4,305				1,144				1,338				-				716				-
Non-GAAP operating income			21,227				13,581				100,846				41,482				19,103				21,782				34,938				8,100
Adjusted EBITDA
Non-GAAP operating income (from above)			21,227				13,581				100,846				41,482				19,103				21,782				34,938				8,100
Depreciation			3,997				3,416				15,181				13,672				3,762				3,168				3,611				3,677
Adjusted EBITDA			25,224				16,997				116,027				55,154				22,865				24,950				38,549				11,777
Pre-2011 Revenue			2,268				12,017				24,772				58,543				5,368				13,635				9,338				17,483
Elim PCS			8,100				7,000				52,900				22,500				12,000				15,500				17,600				-
Adjusted EBITDA w/o Pre-2011 and Elim			14,856				(2,020	)			38,355				(25,889	)			5,497				(4,185	)			11,611				(5,706	)
Adjusted free cash flow
GAAP net cash (used in) provided by operating activities			(270	)			2,061				(49,195	)			(34,026	)			(3,909	)			(9,873	)			(11,209	)			4,630
Capital expenditures			(1,322	)			(4,220	)			(11,003	)			(15,330	)			(2,360	)			(4,368	)			(4,518	)			(2,940	)
Restructuring payments			1,959				564				10,940				1,616				1,496				316				3,533				428
Restatement payments			153				321				153				3,945				-				-				-				2,117
Acquisition, integration and other payments			24				1,988				1,841				6,946				196				3,368				773				-
Efficiency program payments			1,412				1,556				6,942				1,556				1,947				-				1,981				-
Adjusted free cash flow		$	1,956			$	2,270			$	(40,322	)		$	(35,293	)		$	(2,630	)		$	(10,557	)		$	(9,440	)		$	4,235
These non-GAAP measures reflect how Avid manages its businesses internally. Avid’s non-GAAP measures may vary from how other companies present non-GAAP measures. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. This non-GAAP information supplements, and is not intended to represent a measure of performance in accordance with, disclosures required by generally accepted accounting principles, or GAAP. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP.

AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(unaudited - in thousands)
		December 31,				December 31,
			2016				2015
ASSETS
Current assets:
Cash and cash equivalents		$	44,948			$	17,902
Accounts receivable, net of allowances of $8,618 and $9,226
at December 31, 2016 and December 31, 2015, respectively			43,520				58,807
Inventories			50,701				48,073
Prepaid expenses			6,031				6,548
Other current assets			5,805				6,119
Total current assets			151,005				137,449
Property and equipment, net			30,146				35,481
Intangible assets, net			22,932				33,219
Goodwill			32,643				32,643
Long-term deferred tax assets, net			1,245				2,011
Other long-term assets			11,610				7,123
Total assets		$	249,581			$	247,926
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable		$	26,435			$	45,511
Accrued compensation and benefits			25,387				28,124
Accrued expenses and other current liabilities			34,088				35,354
Income taxes payable			1,012				1,023
Short-term debt			5,000				5,000
Deferred revenues			146,014				189,887
Total current liabilities			237,936				304,899
Long-term debt			188,795				95,950
Long-term deferred tax liabilities, net			913				3,443
Long-term deferred revenues			79,670				158,495
Other long-term liabilities			12,178				14,711
Total liabilities			519,492				577,498
Stockholders' deficit:
Common stock			423				423
Additional paid-in capital			1,043,063				1,055,838
Accumulated deficit			(1,271,148	)			(1,319,318	)
Treasury stock at cost			(32,353	)			(58,336	)
Accumulated other comprehensive loss			(9,896	)			(8,179	)
Total stockholders' deficit			(269,911	)			(329,572	)
Total liabilities and stockholders' deficit		$	249,581			$	247,926

AVID TECHNOLOGY, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited - in thousands)
					Twelve Months Ended
					December 31,
						2016				2015
Cash flows from operating activities:
	Net income				$	48,219			$	2,480
	Adjustments to reconcile net income to net cash used in operating activities:
		Depreciation and amortization				25,479				20,088
		Provision (recovery) for doubtful accounts				886				(23	)
		Stock-based compensation expense				7,916				9,514
		Non-cash provision for restructuring				1,137				-
		Non-cash interest expense				9,620				2,890
		Unrealized foreign currency transaction gains				(2,599	)			(7,013	)
		Benefit from deferred taxes				(1,842	)			(6,693	)
		Changes in operating assets and liabilities:
			Accounts receivable			14,321				2,442
			Inventories			(2,628	)			3,056
			Prepaid expenses and other assets			(1,839	)			10,000
			Accounts payable			(18,959	)			11,232
			Accrued expenses, compensation and benefits and other liabilities			(6,280	)			(11,842	)
			Income taxes payable			(9	)			(1,041	)
			Deferred revenues			(122,617	)			(69,116	)
Net cash used in operating activities						(49,195	)			(34,026	)
Cash flows from investing activities:
	Purchases of property and equipment					(11,003	)			(15,330	)
	Payments for business acquisitions, net of cash acquired					-				(65,967	)
	Increase in other long-term assets					(30	)			(43	)
	Increase in restricted cash					(4,544	)			(456	)
Net cash used in investing activities						(15,577	)			(81,796	)
Cash flows from financing activities:
	Proceeds from long-term debt, net of issuance costs					100,000				120,401
	Repayment of debt					(3,750	)			-
	Payments for repurchase of common stock					-				(7,999	)
	Cash paid for capped call transaction					-				(10,125	)
	Proceeds from the issuance of common stock under employee stock plans					6,184				5,035
	Common stock repurchases for tax withholdings for net settlement of equity awards					(941	)			(1,559	)
	Proceeds from revolving credit facilities					25,000				70,500
	Payments on revolving credit facilities					(30,000	)			(65,500	)
	Payments for credit facility issuance costs					(5,041	)			(1,195	)
Net cash provided by financing activities						91,452				109,558
Effect of exchange rate changes on cash and cash equivalents						366				(890	)
Net increase (decrease) in cash and cash equivalents						27,046				(7,154	)
Cash and cash equivalents at beginning of period						17,902				25,056
Cash and cash equivalents at end of period					$	44,948			$	17,902

AVID TECHNOLOGY, INC.
Supplemental Revenue Information
(unaudited - in thousands)
		December 31,			September 30,			December 31,
	Revenue Backlog*	2016			2016			2015
	Pre-2011	$	1,095		$	3,364		$	25,868
	Post-2010	$	224,589		$	236,644		$	322,514
	Deferred Revenue	$	225,684		$	240,008		$	348,382
	Other Backlog	$	203,625		$	197,153		$	203,704
	Total Revenue Backlog	$	429,309		$	437,161		$	552,086
	Post 2010	$	428,214		$	433,797		$	526,218
	The expected timing of recognition of revenue backlog as of December 31, 2016 is as follows:
			2017			2018			2019		Thereafter			Total
	Orders executed prior to January 1, 2011	$	952		$	143		$	-		$	-		$	1,095
	Orders executed or materially modified on or	$	136,090		$	43,734		$	23,306		$	21,458		$	224,589
	after January 1, 2011
	Other Backlog	$	79,808		$	47,135		$	26,808		$	49,874		$	203,625
	Total Revenue Backlog	$	216,850		$	91,012		$	50,114		$	71,332		$	429,309
	*A definition of Revenue Backlog is included in the supplemental financial and operational data sheet available on our investor relations webpage at ir.avid.com. Note: current estimates could change based on a number of factors, including (i) the timing of delivery of products and services, (ii) customer cancellations or change order, (iii) changes in the estimated period of time Implied Maintenance Release PCS is provided to customers, including as a result of changes in business practices.

CONTACT: PR Contact:    
Sara Griggs                   
Avid         
[email protected]         
310-907-6909

Investor Contact:
Robert Roose
Avid
[email protected]