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AVID 2010 ANNUAL REPORT

Table of contents

  • Page 1
    AVID 2010 ANNUAL REPORT

  • Page 2

  • Page 3
    ...have been honored with three new Emmy® awards for the role the company has played in developing innovative technology that advances and improves the way our customers in television capture, edit and deliver audio and video content - as well as the first-ever Technical Excellence Award presented by...

  • Page 4

  • Page 5
    ... No.) 75 Network Drive Burlington, Massachusetts 01803 (Address of Principal Executive Offices, Including Zip Code) (978) 640-6789 (Registrant's Telephone Number, Including Area Code) Securities Registered Pursuant to Section 12(b) of the Act: Title of Each Class Common Stock, $.01 Par...

  • Page 6
    ... Staff Comments Properties Legal Proceedings Submission of Matters to a Vote of Security Holders 1 9 18 18 18 18 ITEM 9. ITEM 9A. ITEM 9B. PART III. ITEM 10. ITEM 11. ITEM 12. ITEM 13. ITEM 14. PART IV. ITEM 15. Directors, Executive Officers and Corporate Governance Executive Compensation Security...

  • Page 7
    ..., any statements contained in this annual report that relate to future results or events are forward-looking statements. Forward-looking statements may be identified by use of forwardlooking words, such as "anticipate," 'believe," "could," "estimate," "expect," "intend," "confidence," "may," "plan...

  • Page 8
    ... business around functional groups rather than product categories. As a result, effective January 1, 2010, we commenced reporting based on a single reportable segment. CORPORATE STRATEGY We operate our business based on the following five customer-centric strategic principles: Drive customer success...

  • Page 9
    ... audio and video media as a paid service, but who do not distribute media to end consumers on a large scale. This segment includes a wide-ranging target audience that includes: students and teachers in career technical education programs in high schools, colleges and universities, as well as in...

  • Page 10
    ... hardware professional video-editing solutions. Our award-winning Media Composer product line is widely used to edit television programs, commercials and films, while our NewsCutter and iNews Instinct editors are designed for the fast-paced world of news production. Avid Symphony Nitris DX and Avid...

  • Page 11
    ... rather than spending valuable resources on technical administration. In January 2010, we acquired Blue Order Solutions AG. Blue Order's enterprise media asset management platform, now called Interplay Media Asset Manager, provides users with the ability to easily access and use a wide range of...

  • Page 12
    ... and solutions. Our customer success team provides online and telephone support and access to software upgrades for customers whose products are under warranty or covered by a maintenance contract. Our professional services team provides installation, integration, planning, consulting and training...

  • Page 13
    ... through dealers, value-added resellers and authorized third-party service providers. Depending on the solution, customers may choose from a variety of support offerings, including telephone and online technical support, on-site assistance, hardware replacement and extended warranty, and software...

  • Page 14
    ... risks associated with our use of partners for R&D projects, see "Risk Factors" in Item 1A of this annual report. Our company-operated R&D operations are located in: Burlington, Massachusetts; Daly City, California; Irwindale, California; Madison, Wisconsin; Mountain View, California; Kaiserslautern...

  • Page 15
    ...environmental programs. We expect our 2011 environmental costs to remain approximately the same as our 2010 costs. WEB SITE ACCESS We make available free of charge on our website, www.avid.com, copies of our annual reports on Form 10-K, our quarterly reports on Form 10-Q, our current reports on Form...

  • Page 16
    ... these changes or adapt to them quickly, our business will be harmed. For example, traditional advertising channels face competition from web and mobile platforms and diminished revenue from traditional advertising will cause some customers' budgets for purchase of our solutions to decline; this...

  • Page 17
    ... ability to recognize revenues from such sales; length of sales cycles and associated costs; global macroeconomic conditions; fluctuations in foreign currency exchange rates; reliance on third-party reseller and distribution channels; cost of third-party technology or components incorporated into or...

  • Page 18
    ... with long-term changes in the dollar/euro exchange rate. A sustained strengthening of the U.S. dollar against the euro would decrease our expected future U.S. dollar revenue from European sales and could have a significant adverse effect on our overall profit margins. During 2010, economic...

  • Page 19
    ...in decreased revenue, gross margin, earnings or growth rates and difficulty managing inventory levels. Sustained uncertainty about global economic conditions may adversely affect demand for our products and services and could cause demand to differ materially from our expectations. Economic weakness...

  • Page 20
    ... to financial results that differ from the investment community's expectations in a given quarter. Our success depends in part on our ability to retain competent and skilled management and technical, sales and other personnel. We are highly dependent upon the continued service and performance of our...

  • Page 21
    ... control. Language, cultural and time zone differences complicate effective management of contractors that are located offshore. Additionally, competition for talent in certain locations may lead to high turnover rates that disrupt development or manufacturing continuity. Pricing terms offered...

  • Page 22
    ...in the delivery model for our products and services could adversely affect our revenue and gross margins and therefore our profitability. In addition, some of our resellers and distributors have limited rights of return, as well as inventory stock rotation and price protection. Accordingly, reserves...

  • Page 23
    ... our control. Our business may not generate sufficient cash flows to meet these obligations or to successfully execute our business strategy. If we are unable to service our debt and fund our business, we may be forced to reduce or delay capital expenditures or research and development expenditures...

  • Page 24
    .... The time and resources available to devote to quality control measures are, in part, dependent on other business considerations, such as meeting customer expectations with respect to release schedules. Any product defects could result in loss of customers or revenues, delays in revenue recognition...

  • Page 25
    ... market price of our common stock, regardless of our operating performance. ITEM 1B. None. UNRESOLVED STAFF COMMENTS ITEM 2. PROPERTIES We lease approximately 203,000 square feet in three facilities in Burlington, Massachusetts for our principal corporate and administrative offices, as well as...

  • Page 26
    ... ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the NASDAQ Global Select Market under the symbol AVID. The table below shows the high and low sales prices of the common stock for each calendar quarter of the fiscal years ended December 31, 2010 and 2009. 2010 High Low High 2009...

  • Page 27
    ... stock returns to the Avid Peer Group Index, which is currently composed of the following NASDAQ-traded companies selected by Avid to best represent its peers based on various criteria, including industry classification, number of employees and market capitalization: Autodesk, Inc., Cadence Design...

  • Page 28
    ... STATEMENTS OF OPERATIONS DATA: (in thousands except per share data) For the Year Ended December 31, 2010 2009 2008 2007 2006 Net revenues Cost of revenues Gross profit Operating expenses: Research and development Marketing and selling General and administrative Amortization of intangible...

  • Page 29
    ... of net revenues for the periods indicated: For the Year Ended December 31, 2010 2009 2008 Net revenues: Product revenues Services revenues Total net revenues Cost of revenues Gross margin Operating expenses: Research and development Marketing and selling General and administrative Amortization of...

  • Page 30
    ... lines, which had a high percentage of international sales, and the unfavorable impact on revenues of the changes in currency exchange rates. See "Risk Factors" in Item 1A of this annual report for risk factors that may cause our future result s to differ materially from our current expectations...

  • Page 31
    ... and Allowances for Product Returns and Exchanges We generally recognize revenues from sales of software and software-related products upon receipt of a signed purchase order or contract and product shipment to distributors or end users, provided that collection is reasonably assured, the fee is...

  • Page 32
    ... the time at which the remaining contractual terms relating to the upgrade have been satisfied. In 2010, approximately 65% of our revenues were derived from indirect sales channels, including authorized resellers and distributors. Certain channel partners are offered limited rights of return, stock...

  • Page 33
    ... method in accounting for share-based payment transactions with employees. During 2010, we granted both stock options and restricted stock units as part of our key performer stock-based compensation program, as well as stock options and restricted stock units to newly hired employees. In prior years...

  • Page 34
    ... of stock-based compensation were estimated and applied based on three classes, non-employee directors, executive management staff and other employees. At December 31, 2010, our annualized estimated forfeiture rates were 0% for non-employee director awards and 10% for both executive management staff...

  • Page 35
    ...customer retention rates, trademark royalty rates, costs to complete in-process technology and long-term discount rates, all of which require significant judgments by management. If the carrying value of the reporting unit's goodwill exceeds the implied fair value, we record an impairment loss equal...

  • Page 36
    ...discontinued product lines, which had a high percentage of international sales, and the unfavorable impact on revenues of the changes in currency exchange rates. International sales increased by $21.9 million, or 6%, from 2009 to 2010, compared to our worldwide increase in sales of 8%. International...

  • Page 37
    ... video products for 2010, compared to 2009, was primarily the result of increased revenues from sales of our ISIS shared storage systems and professional editors, as well as increased revenues from our Interplay production and media-asset management products and our broadcast newsroom product lines...

  • Page 38
    ...-promotion programs, the distribution channels through which products are sold, the timing of new product introductions, sales of aftermarket hardware products such as disk drives, and currency exchange-rate fluctuations. Gross Margin % for the Years Ended December 31, 2010, 2009 and 2008 Increase...

  • Page 39
    ... services costs, which all primarily resulted from our increased use of offshore development resources. The overall decrease in R&D expenses was also offset by increased expenses resulting from our 2010 acquisitions of Blue Order and Euphonix. R&D expenses as a percentage of revenues decreased...

  • Page 40
    ... and pre-sales customer support personnel; commissions; travel expenses; advertising and promotional expenses; and facilities costs. We expect our 2011 marketing and selling expenses to be higher than those incurred in 2010. Marketing and Selling Expenses for 2010 and 2009 Compared to the Prior Year...

  • Page 41
    ... useful life of the developed technology, and (2) the straight-line method over each developed technology's remaining useful life. Amortization of developed technology is recorded within cost of revenues. Amortization of customer-related intangibles, trade names and other identifiable intangible...

  • Page 42
    ... our acquisitions of Blue Order, Euphonix and MaxT. The decrease in amortization of intangible assets recorded in cost of revenues during 2009, compared to 2008, was primarily the result of the completion during 2008 and early 2009 of the amortization of certain developed technologies related to our...

  • Page 43
    ... information on the goodwill and identifiable intangible assets resulting from our acquisitions. Restructuring and Other Costs, Net 2010 Restructuring Plans In December 2010, we initiated a company-wide restructuring plan designed to better align financial and human resources in accordance with our...

  • Page 44
    ... the reduction in force of 320 additional employees were recorded in the third and fourth quarters and were primarily the result of the expanded use of offshore development resources for R&D projects and our desire to better align our 2010 cost structure with revenue expectations. During 2010, we...

  • Page 45
    ... tax benefits at December 31, 2010 and 2009. LIQUIDITY AND CAPITAL RESOURCES Liquidity and Sources of Cash We have generally funded our operations in recent years through the use of existing cash balances as well as from the proceeds of the issuance of common stock under our employee stock plans...

  • Page 46
    ... of Avid Technology and Avid Europe may be accelerated. Interest accrues on outstanding borrowings under the credit facilities at a rate of either LIBOR plus 2.75% or a base rate (as defined in the Credit Agreement) plus 1.75%, at our option. We must also pay Wells Fargo a monthly unused line fee...

  • Page 47
    ... locations, as well as inventory at customer sites related to shipments for which we had not yet recognized revenue. The increase in inventories at December 31, 2010 was primarily the result of increased stocking levels to meet increased demand, as well as a buildup of inventory related to new...

  • Page 48
    ...computer hardware and software to support our R&D activities and information systems. The increase in property and equipment purchases in the 2010 period primarily resulted from leasehold improvement, furniture and equipment costs associated with the relocation of our corporate offices to Burlington...

  • Page 49
    ... of unpaid balances. At December 31, 2010, our maximum exposure under these programs was approximately $1.0 million. We have three letters of credit at a bank that are used as security deposits in connection with our leased Burlington, Massachusetts headquarters office space. In the event of default...

  • Page 50
    ... form of foreign currency forward contracts to manage our short-term exposures to fluctuations in the foreign currency exchange rates that exist as part of our ongoing international business operations. We do not enter into any derivative instruments for trading or speculative purposes. The success...

  • Page 51
    ... we enter into short-term foreign currency forward contracts. There are two objectives of this foreign currency forward-contract program: (1) to offset any foreign exchange currency risk associated with cash receipts expected to be received from our customers and cash payments expected to be made to...

  • Page 52
    ... CONSOLIDATED FINANCIAL STATEMENTS INCLUDED IN ITEM 8: Management's Report on Internal Control Over Financial Reporting Reports of Independent Registered Public Accounting Firm Consolidated Statements of Operations for the years ended December 31, 2010, 2009 and 2008 Consolidated Balance Sheets as...

  • Page 53
    ... may deteriorate. The Company's management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2010. In making this assessment, the Company's management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway...

  • Page 54
    ... for our opinion. A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles...

  • Page 55
    ... in ASC Topic 805, Business Combinations) effective January 1, 2009. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Avid Technology, Inc.'s internal control over financial reporting as of December 31, 2010, based on criteria...

  • Page 56
    ... 2010 2009 2008 Net revenues: Products Services Total net revenues Cost of revenues: Products Services Amortization of intangible assets Restructuring costs Total cost of revenues Gross profit Operating expenses: Research and development Marketing and selling General and administrative Amortization...

  • Page 57
    ... LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and benefits Accrued expenses and other current liabilities Income taxes payable Deferred revenues Total current liabilities Long-term liabilities Total liabilities Commitments and contingencies (Notes...

  • Page 58
    ... gains (losses) on defined benefit plan and marketable securities Translation adjustment Other comprehensive loss Comprehensive loss Balances at December 31, 2008 42,339 Stock issued pursuant to employee stock plans Stock-based compensation Stock option purchase Stock recovery for payment of...

  • Page 59
    ... Accrued expenses, compensation and benefits and other liabilities Income taxes payable Deferred revenues Net cash used in operating activities Cash flows from investing activities: Purchases of property and equipment Payments for other long-term assets Payments for business acquisitions, net of...

  • Page 60
    ...TO CONSOLIDATED FINANCIAL STATEMENTS A. ORGANIZATION AND OPERATIONS Avid Technology, Inc. ("Avid" or the "Company") develops, markets, sells and supports a wide range of software and hardware for digital media content production, management and distribution. Digital media are video, audio or graphic...

  • Page 61
    ... currency forward contracts and trade receivables. The Company may place its excess cash in marketable investment grade securities and uses foreign currency forward contracts to manage certain of its short-term exposures to fluctuations in foreign currency exchange rates. The Company places its...

  • Page 62
    ... receivables, payables and sales transactions, as well as net investments in foreign operations. The Company derives more than half of its revenues from customers outside the United States. This business is, for the most part, transacted through international subsidiaries and generally in the...

  • Page 63
    ...trends, current budgets, operating plans and industry data. The model also includes assumptions for, among others, working capital cash flow, growth rates, income tax rates, expected tax benefits and long term discount rates, all of which require significant judgments by management. The Company also...

  • Page 64
    ... product sale transactions, customers may purchase a maintenance and support agreement. The Company generally recognizes revenues from maintenance contracts on a ratable basis over their term and from training, installation and other services as the services are performed. The Company generally uses...

  • Page 65
    ... (generally between 30 days and twelve months), which precedes commencement of any maintenance contracts. The Company defers the fair value of this support and recognizes the related revenues ratably over the initial warranty period. The Company also from time to time offers certain customers free...

  • Page 66
    ... developed software costs capitalized during the years ended December 31, 2010, 2009 or 2008 were not material. Upon general release, these costs are amortized using the straight-line method over the expected life of the related products, generally 12 to 36 months. The straight-line method generally...

  • Page 67
    ...overall compensation strategy. For stock-based awards granted, the Company records stock-based compensation cost based on the fair value estimated in accordance with ASC Topic 718, Compensation - Stock Compensation, over the requisite service periods for the individual awards, which generally equals...

  • Page 68
    ... on the intrinsic values of the awards at the date of grant. As permitted under ASC Topic 718, the Company uses the Black-Scholes option pricing model to estimate the fair value of stock option grants with time-based vesting. The Black-Scholes model relies on a number of key assumptions to calculate...

  • Page 69
    ... for the calculation of stock-based compensation were estimated and applied based on three classes, non-employee directors, executive management staff and other employees. At December 31, 2010, the Company's annualized estimated forfeiture rates were 0% for non-employee director awards and 10% for...

  • Page 70
    ... gains and losses from the sale of marketable securities were not material for the years ended December 31, 2010, 2009 and 2008. D. FOREIGN CURRENCY FORWARD CONTRACTS During 2010, the Company began to use foreign currency forward contracts to hedge the foreign exchange currency risk associated with...

  • Page 71
    .... There are two objectives of the Company's foreign currency forward contract program: (1) to offset any foreign currency exchange risk associated with cash receipts expected to be received from th e Company's customers and cash payments expected to be made to the Company's vendors over the next 30...

  • Page 72
    ...Benefit plan and deferred compensation obligations $ Foreign currency forward contracts (a) 1,656 546 $ 808 $ 848 546 $ - - At December 31, 2009, available for sale securities valued using quoted market prices in active markets and classified as Level 1 were primarily money market securities...

  • Page 73
    ... profit margins, operating profit margins, working capital cash flow, growth rates, income tax rates, expected tax benefits and long-term discount rates, all of which require significant judgments by management. The Company also considers comparable market data based on multiples of revenue as well...

  • Page 74
    ... as finished goods inventory for the current presentation. The decrease in raw materials and work in process at December 31, 2010, which was offset by an increase in finished goods, was related to the Company's increased use of contractors to manufacture our products, components and subassemblies...

  • Page 75
    ...): Depreciable Life 2010 2009 Computer and video equipment and software Manufacturing tooling and testbeds Office equipment Furniture and fixtures Leasehold improvements Less accumulated depreciation and amortization 2 to 5 years 3 to 5 years 3 to 5 years 3 to 8 years 1 to 10 years $ $ 125...

  • Page 76
    ...date of acquisition through December 31, 2010 allocated the purchase price as follows (in thousands): Tangible assets acquired, net Identifiable intangible assets: Developed technology Customer relationships Trademarks and trade name Non-compete agreement Goodwill Deferred tax liabilities, net Total...

  • Page 77
    ...economic benefit to be received over the life of the asset discounted to present value. The weighted-average discount rate (or rate of return) used to determine the value of Blue Order's intangible assets was 2 0% and the effective tax rate used was 30%. The values of the customer relationships, non...

  • Page 78
    ...gain on sale of this business included an allocation of $15.8 million of goodwill from the former Professional Video reporting unit. Even though the Softimage 3D animation product line constituted a business, the Company determined that this business did not represent a component of the Company that...

  • Page 79
    ... revenues, gross profit margins, operating profit margins, working capital cash flow, growth rates, income tax rates, expected tax benefits and long term discount rates, all of which require significant judgments by management. The market approach considers the reconciliation of the Company...

  • Page 80
    ..., and the then expected sale of, the Company's PCTV product line, the Company tested the former Consumer Video reporting unit's identifiable intangible assets for impairment. The Company's analysis determined that the undiscounted cash flows of the Consumer Video net asset groups were less than the...

  • Page 81
    ..., as well as other facilities-related obligations (see Note R). The Company's leases for corporate office space in Burlington, Massachusetts, which expire in May 2020, contain renewal options to extend the respective terms of each lease for up to two additional five year periods. The Company has...

  • Page 82
    ...hardware components, or adversely modify purchasing terms or pricing structures, the Company's ability to sell and service its products may be impaired. The Company procures product components and builds inventory based on forecasts of product life cycle and customer demand. If the Company is unable...

  • Page 83
    ... for all of the Company's products is generally 90 days to one year, but can extend up to five years depending on the manufacturer's warranty or local law. The following table sets forth the activity in the product warranty accrual account for the years ended December 31, 2010 and 2009 (in thousands...

  • Page 84
    ... paid by the Company. O. STOCK-BASED COMPENSATION Stock Incentive Plans Under its stock incentive plans, the Company may grant stock awards or options to purchase the Company's common stock to employees, officers, directors (subject to certain restrictions) and consultants, generally at the market...

  • Page 85
    ... valuation allowance on the Company's U.S. deferred tax assets. Information with respect to non-vested restricted stock units for the year ended December 31, 2010 is as follows: Non-Vested Restricted Stock Units WeightedAverage WeightedRemaining Average Contractual Grant-Date Term Fair Value Shares...

  • Page 86
    .... Members of the Company's Board of Directors, officers who file reports under Section 16(a) of the Securities Exchange Act of 1934 and members of the Co mpany's executive staff were not eligible to participate in this offer. Under the offer, eligible options with exercise prices equal to or greater...

  • Page 87
    ... of total unrecognized compensation cost, before forfeitures, related to non-vested stock-based compensation awards granted under the Company's stock -based compensation plans. The Company expects this amount to be amortized as follows: $12 million in 2011, $6 million in 2012, $3 million in 2013 and...

  • Page 88
    ..., as well as the corresponding obligations, were approximately $1.0 million and $0.8 million at December 31, 2010 and 2009, respectively, and were recorded in "other current assets" and "accrued compensation and benefits" at those dates. In connection with its acquisition of Blue Order, the Company...

  • Page 89
    ... loss and tax credit amounts are subject to annual limitations under Section 382 change of ownership rules of the U.S. Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"). The Company completed an assessment in the second quarter of 2010 of whether there may have been a Section...

  • Page 90
    ... reflected on tax returns. In 2009 and 2010, no adjustment to additional paid-in-capital related to exercises of employee stock options was required. The following table sets forth a reconciliation of the Company's income tax provision (benefit) to the statutory U.S. federal tax rate for the years...

  • Page 91
    ... 2009 remain open to examination by taxing authorities in the jurisdictions in which the Company operates. R. RESTRUCTURING COSTS AND ACCRUALS 2010 Restructuring Plans In December 2010, the Company initiated a worldwide restructuring plan designed to better align financial and human resources in...

  • Page 92
    ... force of 320 additional employees were recorded in the third and fourth quarters and were primarily the result of the expanded use of offshore development resources for R&D projects and the Company's desire to better align its 2010 cost structure with revenue expectations. During 2010, the Company...

  • Page 93
    ... Cash payments for employee-related charges Cash payments for facilities, net of sublease income Non-cash write-offs Foreign exchange impact on ending balance Accrual balance at December 31, 2008 New restructuring charges - operating expenses New restructuring charges - cost of revenues Revisions of...

  • Page 94
    ... The Company's services revenues are primarily derived from the sale of maintenance contracts and professional services. The Company provides online and telephone support and access to software upgrades for customers whose products are under warranty or covered by a maintenance contract. The Company...

  • Page 95
    ... lines. The following table is a summary of the Company's revenues by country for the years ended December 31, 2010, 2009 and 2008 (in thousands). The categorization of revenues is based on the country in which the end user customer resides. No individual country, other than the United States...

  • Page 96
    ... at a rate of either LIBOR plus 2.75% or a base rate (as defined in the Credit Agreement) plus 1.75%, at the option of Avid Technology or Avid Europe, as applicable. The Borrowers must also pay Wells Fargo a monthly unused line fee at a rate of 0.625% per annum on an amount equal to (1) the...

  • Page 97
    ... data) Dec. 31 2010 Sept. 30 June 30 Quarters Ended Mar. 31 Dec. 31 2009 Sept. 30 June 30 Mar. 31 Net revenues Cost of revenues Amortization of intangible assets Restructuring costs Gross profit Operating expenses: Research & development Marketing & selling General & administrative Amortization...

  • Page 98
    ... as a result of a number of factors including, without limitation, the timing of new product introductions; the timing of, and costs incurred in association with, the recognition of large enterprise sales to customers; marketing expenditures; promotional programs; and periodic discounting due to...

  • Page 99
    ... and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management...

  • Page 100
    ... our employees, including our principal executive officer, principal financial officer and principal accounting officer. We will provide any person, without charge, with a copy of our Code of Business Conduct and Ethics upon written request to Avid, 75 Network Drive, Burlington, MA 01803, Attention...

  • Page 101
    ...Management's Report on Internal Control Over Financial Reporting Reports of Independent Registered Public Accounting Firm Consolidated Statements of Operations for the years ended December 31, 2010... are filed or furnished with this report or which are incorporated herein by reference, is set forth ...

  • Page 102
    ... Jason Burke Vice President of Finance (Principal Accounting Officer) Date: March 14, 2011 Date: March 14, 2011 March 14, 2011 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the...

  • Page 103
    ...207,209 203,473 Amount represents write-offs, net of recoveries and foreign exchange gains (losses). Provisions for sales returns and volume rebates are charged directly against revenues. Amount represents credits for returns, volume rebates and promotions. During 2010, bad debt expenses related to...

  • Page 104
    ... Stock Credit Agreement by and among Avid Technology, Inc., Avid Technology International B. V., Pinnacle Systems, Inc., Avid General Partner B.V., each of the lenders party thereto, and Wells Fargo Capital Finance, LLC, as agent, dated October 1, 2010 Network Drive at Northwest Park Office Lease...

  • Page 105
    ...Amended and Restated 2005 Stock Incentive Plan Form of Stock Option Agreement for UK Employees under the HM Revenue and Customs Approved Sub-Plan for UK Employees under the Registrant's Amended and Restated 2005 Stock Incentive Plan Form of Nonstatutory Stock Option Grant Terms and Conditions (under...

  • Page 106
    ...Restated Employment X Agreement used prior to January 1, 2011 #10.38 2011 Executive Bonus Plan 8-K 21 Subsidiaries of the Registrant X 23.1 Consent of Ernst & Young LLP X 31.1 Certification of Principal Executive Officer X pursuant to Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934...

  • Page 107
    ... related to the Company, its activities, or its securities should be addressed to: Tom Fitzsimmons Director of Investor Relations Avid 75 Network Drive Burlington, MA 01876 tel 978 640 3346 tom.fi[email protected] Worldwide Offices Beijing Brussels Burlington Daly City Dubai Dublin Edmonton...

  • Page 108
    Avid 75 Network Drive Burlington, MA 01803 USA www.avid.com