Avid Technology, Inc. (AVID) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $1.92 million, or $ 0.05 a share in the quarter, against a net profit of $20.94 million, or $0.53 a share in the last year period.
Revenue during the quarter dropped 27.48 percent to $104.11 million from $143.55 million in the previous year period. Gross margin for the quarter contracted 866 basis points over the previous year period to 61.05 percent. Total expenses were 97.04 percent of quarterly revenues, up from 82.06 percent for the same period last year. That has resulted in a contraction of 1498 basis points in operating margin to 2.96 percent.
Operating income for the quarter was $3.08 million, compared with $25.76 million in the previous year period.
However, the adjusted operating income for the quarter stood at $9.44 million compared to $34.94 million in the prior year period. At the same time, adjusted operating margin contracted 1528 basis points in the quarter to 9.06 percent from 24.34 percent in the last year period.
"We are pleased to have once again met or exceeded quarterly guidance for all of our metrics and delivered positive Free Cash Flow, which resulted in a sequential increase in our liquidity position," said Louis Hernandez, Jr., chairman and chief executive officer of Avid. "In addition, the commercial agreement for Greater China that we signed with Jetsen during the quarter is further advancing our shift to recurring revenue, driving growth through guaranteed minimums and providing greater visibility with a larger backlog."
For the second-quarter, Avid Technology, Inc. forecasts revenue to be in the range of $93 million to $103 million.
Operating cash flow turns positive
Avid Technology, Inc. has generated cash of $3.53 million from operating activities during the quarter as against cash outgo of $11.21 million in the last year period.
The company has spent $0.04 million cash to meet investing activities during the quarter as against cash outgo of $9.07 million in the last year period.
The company has spent $1.62 million cash to carry out financing activities during the quarter as against cash inflow of $89.77 million in the last year period.
Cash and cash equivalents stood at $47.01 million as on Mar. 31, 2017, down 46.47 percent or $40.82 million from $87.83 million on Mar. 31, 2016.
Debt moves up marginally
Avid Technology, Inc. has witnessed an increase in total debt over the last one year. It stood at $194.30 million as on Mar. 31, 2017, up 1.13 percent or $2.17 million from $192.13 million on Mar. 31, 2016. Long-term debt stood at $189.30 million as on Mar. 31, 2017. Total debt was 77.61 percent of total assets as on Mar. 31, 2017, compared with 61.64 percent on Mar. 31, 2016.
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