Avid Posts Q4 Loss

Avid today that it is postponing the release of its Q4 and full year 2012 financial results and conference call in order “to provide additional time for the company to evaluate its current and historical accounting treatment related to bug fixes, upgrades and enhancements to certain products which the company has provided to certain customers.” Avid was originally scheduled to issue its results on Tuesday February 26, 2013. The company said that the need to evaluate the accounting treatment arose during its normal review of its financial results for the fourth quarter and full year 2012, and that it is “working diligently to complete its evaluation, but is currently unable to estimate when the evaluation will be completed.” Investors did not like the news, and sent the company’s shares down more than 11 percent following the announcement. The news comes two weeks after Avid said it had named. At that time, Hernandez said “It is an exciting opportunity to lead Avid at this very important juncture in the company’s history. The company is well positioned for growth and global expansion in this fast-moving marketplace. It is exciting to be working with the Avid team, as we drive results and value for our customers, employees, and shareholders.” Avid is one of the most storied names in the broadcast industry and the company has been at the forefront of technological innovation for 25 years. However, the company has struggled to achieve profitability over the past several years and has gone through multiple rounds of layoffs.

Today’s announcement is not the first time the company in recent memory that Avid has made pre-announcements about its quarterly results. Last year, the company, and then subsequently. Avid, when it after its revenue dropped 23 percent versus the previous year and 19% versus the previous quarter. Despite its financial woes over the past few years, our research shows that Avid continues to enjoy a strong brand reputation and customer loyalty. With new management in place and the 2013 NAB Show just around the corner, it will be interesting to see what strategies the company adopts to meet the needs of its customers and return to profitability.

Related Content:: Avid Postpones its Fourth Quarter Earnings Release. © Devoncroft Partners.

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TORONTO - Postmedia Network Canada Corp. Continued to experience significant revenue erosion at its newspaper business during its fourth quarter, which ended with a $22.8 million net loss. The company, which owns the National Post as well as newspapers in several of Canada's largest cities and smaller print and digital publications, said the loss amounted to 24 cents per share. That compared with a profit of $40.3 million or 43 cents per share last year's fourth quarter, when the bottom line was helped by a gain from the sale of Infomart and a lower restructuring expense. Restructuring costs totalled $13 million in the quarter, up from $1.7 million a year earlier. The company announced in June that it would begin another round of cost-reductions aimed at reducing compensation expenses by about 10 per cent during the financial year ended Aug. 31, through voluntary and involuntary departures.

The downsizing comes amid declining revenue for most traditional newspaper and broadcasting companies as they battle newer types of digital media and internet services for audiences and advertisers. Postmedia's fourth-quarter revenue fell to $158.68 million compared with $176.8 million a year ago, despite a 10 per cent increase in digital revenue, which rose to $28.9 million. Postmedia management has repeatedly said it has a two-track strategy - keep its legacy print business going long enough through a combination of cost cutting and asset sales to buy time for building a new digital business. 'We're sticking with that strategy because it's working,' chief operating officer Andrew MacLeod said during a conference call to discuss the quarterly report. He said Postmedia is learning to co-exist with Google and Facebook - cited by many media businesses as their main rivals - and reworking Postmedia's own digital network to 'remonetize' the audiences it creates through journalism. For the full year, digital revenue was $116.4 million - about 17 per cent of total revenue.

That's up from $105.471 million or 13 per cent of total revenue in fiscal 2017. On the other hand, full-year print advertising revenue was down 17 per cent to $308.6 million and print circulation revenue was down nearly eight per cent to $220.4 million. Total compensation for 2018 dropped to $241.5 million, down 20 per cent or $60.8 million from last year, while interest expenses dropped about 16 per cent or $5.2 million to $27.5 million from $32.7 million in fiscal 2017. 'While hitting the $100 million digital revenue mark in our (fiscal) 2018 year was a very important milestone, one that we are proud of, we know we have much more to do,' MacLeod said. 'Management will be keenly focused on continuing the growth, as quickly as possible, in the quarters and years to come.' A similar strategy has been undertaken by Torstar Corp., owner of the Toronto Star and other print and digital publications - predominantly in Ontario and a few major cities outside its home province.

Avid Posts Q4 Loss Reviews

Chief executive Paul Godfrey pointed out that Postmedia has repaid nearly $100 million of first-lien debt since Postmedia underwent a recapitalization in October 2016. The first-lien notes mature in July 2021, with $134.3 million outstanding as of Aug. An additional US$108.2 million notes mature in July 2023. The recapitalization reduced Postmedia's indebtedness by more than half to $307 million, from $648 million, and reduced Postmedia's annual cash interest expenses. Torstar holds an investment in The Canadian Press as part of a joint agreement with a subsidiary of the Globe and Mail and the parent company of Montreal's La Presse.