Avid Technology, Inc.: Technology and Communications Company Profile, SWOT & Financial Report by ICDResearch

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									Avid Technology, Inc.

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Avid Technology, Inc.                                                  Financial Snapshot

                                                                       Operating Performance
Fast Facts
                                      75 Network Drive, BURLINGTON,    The company reported revenue of US$677 million
Headquarters Address
                                      01803,United States of America   during the fiscal year 2011 (2011). The company's
                                                                       revenue declined at a compounded rate of 7.62%
Telephone                             + 19786406789
                                                                       during 2007–2011, with an annual decline of 0.40%
                                                                       over 2010. In 2011, the company recorded an
Fax                                   + 19786403366                    operating margin of -3.08%, as against -5.38% in
                                                                       2010.
Website                               www.avid.com

Ticker Symbol, Stock Exchange         AVID, NASDAQ                     Revenue and Margins

Number of Employees                   1,787

Fiscal Year End                       December

Revenue (in US$ million)              677




SWOT Analysis

Strengths                             Weaknesses

Strong marketing and sales channels   Limited liquidity position

Wide geographical presence            Weak operational performance

Wide portfolio of offerings

Opportunities                         Threats

Growing video gaming industry         Competitive pressures

New product launch                    Dependence on third parties

New product launches                  Foreign exchange risks




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Avid Technology, Inc. - SWOT Profile                                                                       Page 1
Avid Technology, Inc.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Operational Efficiency ......................................................................................................................................11
    2.3       Competitive Benchmarking ..................................................................................................................................12
      2.3.1       Efficiency ..........................................................................................................................................................12
      2.3.2       Turnover – Inventory and Asset .......................................................................................................................13
3     SWOT Analysis ...................................................................................................................................... 14
    3.1       SWOT Analysis - Overview ..................................................................................................................................14
    3.2       Strengths ..............................................................................................................................................................14
    3.3       Weaknesses .........................................................................................................................................................14
    3.4       Opportunities ........................................................................................................................................................15
    3.5       Threats .................................................................................................................................................................15
4     History .................................................................................................................................................... 17
5     Key Employees ...................................................................................................................................... 19
6     Key Employee Biographies................................................................................................................... 21
7     Locations and Subsidiaries .................................................................................................................. 22
    7.1       Head Office ..........................................................................................................................................................22
    7.2       Other Locations and Subsidiaries ........................................................................................................................22
8     Appendix ................................................................................................................................................ 24
    8.1       Methodology .........................................................................................................................................................24
    8.2       Ratio Definitions ...................................................................................................................................................24
    8.3       Disclaimer.............................................................................................................................................................28




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Avid Technology, Inc. - SWOT Profile                                                                                                                                        Page 2
Avid Technology, Inc.

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List of Tables

Table 1: Major Products and Services....................................................................................................................................6
Table 2: Key Ratios - Annual ..................................................................................................................................................7
Table 3: Key Ratios - Interim ..................................................................................................................................................9
Table 4: Key Capital Market Indicators ..................................................................................................................................9
Table 5: History.....................................................................................................................................................................17
Table 6: Key Employees .......................................................................................................................................................19
Table 7: Key Employee Biographies ....................................................................................................................................21
Table 8: Subsidiaries ............................................................................................................................................................22
Table 9: Locations ................................................................................................................................................................23




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Avid Technology, Inc. - SWOT Profile                                                                                                                                       Page 3
Avid Technology, Inc.

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List of Figures

Figure 1: Revenue and Operating Profit ...............................................................................................................................10
Figure 2: Operational Efficiency ...........................................................................................................................................11
Figure 3: Efficiency ...............................................................................................................................................................12
Figure 4: Turnover – Inventory and Asset ............................................................................................................................13




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Avid Technology, Inc. - SWOT Profile                                                                                                                                      Page 4
Avid Technology, Inc.

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1 Business Analysis

1.1   Company Overview

Avid Technology, Inc. (Avid) is one of the leading providers of digital media content creation solutions. The company
develops, markets and sells a wide range of software and hardware products. Some of its major products include digital
audio work stations, home music creations, handheld recorders, headphones and earphones, keyboards, studio monitors,
and music education software, among others. The company offers these products and solutions under two categories:
video products and audio products. These products find applications in production, management, and distribution of digital
media content. Its customers include artists, home enthusiasts, film studios and media-production companies. Avid
markets and sells its products and services through direct and indirect sales channels including internal sales
representatives, e-commerce sales programs, independent distributors, value-added resellers, dealers and retailers. The
company has presence in 20 countries worldwide. Avid is headquartered in Burlington, Massach
								
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