Avid Technology (AVID) Tops Q1 Views, Guides

Avid Technology (NASDAQ: AVID) reported Q1 EPS of $0.33, $0.41 better than the analyst estimate of ($0.08). Revenue for the quarter came in at $134.4 million versus the consensus estimate of $110.1 million.

GUIDANCE:

Avid Technology sees Q3 2016 revenue of $120-135 million, versus the consensus of $131.9 million.

Avid Technology sees FY2016 revenue of $535-565 million, versus the consensus of $521.56 million.

“We delivered bookings, adjusted free cash flow and non-GAAP operating expenses in line with guidance, and non-GAAP revenue and adjusted EBITDA above the guidance range,” said Louis Hernandez, Jr, Chairman, President, and CEO of Avid. “Performance was driven by recurring revenue growth as well as improved conversion of bookings and revenue backlog to revenue, partly driven by new software releases. We also benefited from tight cost control and low material costs. We continue to build on the momentum of Avid Everywhere, our strategic vision for the industry, with the number of users of the Media Central platform now surpassing 38,000 as our global customer base embraces the efficiency and flexibility of our platform. We are also encouraged by the continued upward trajectory of our Alliance business, which benefits from cross-selling third-party applications into our expanded user base, and our Tier 3 business, focused on independent professionals, which generated double-digit growth in digital bookings and triple-digit growth in cloud-enabled subscriber bookings.

“We are raising our full-year guidance range for non-GAAP revenue and adjusted EBITDA. We are also improving our guidance range for non-GAAP operating expenses because we are increasing our annualized run-rate cost savings target to $76 million. We are on track to be cash flow positive for the full year as we continue to execute our efficiency program and growth initiatives. We are reaffirming guidance for bookings, although we expect to be at the lower end of the range, due to higher than expected volatility in the media enterprise market.

“Our financial results and operational performance this quarter underscore the progress we are making to transform our company into a service-platform business with strong positions in higher-growth categories and a greater proportion of recurring revenue. We have a clear path to complete this transformation by our target of mid-2017, which will enable us to accelerate growth, realize a more efficient cost structure, increase revenue visibility, and generate enhanced value for our shareholders over the long-term,” Mr. Hernandez concluded.

For earnings history and earnings-related data on Avid Technology (AVID) click here.

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