MARCH 6 | BALANCE SHEET | AVID AUDIO
Avid Audio Bolsters Bottom Line
At Avid, parent company for Digidesign, M-Audio and Sibelius, net revenues for 2006 were up 17 percent to $910.6 million. Of the total revenue increase, approximately $111 million represents net revenues from recently acquired businesses, including Sibelius. The remaining revenue increase is primarily attributable to increased revenues in the company’s audio segment, which includes M-Audio and Digi.
Despite higher revenues, Avid incurred a net loss of $42.9 million, compared to net income of $34 million for the same period in 2005. The net loss for 2006 includes $89.5 million in acquisition-related costs, including a goodwill impairment charge, intangible asset amortization expenses and in-process research and development expenses.
In the audio segment, net revenues increased 14 percent to $304 million, while segment operating income increased 17 percent to $45 million. Of the total revenue increase, approximately $7 million relates to the acquisition of Sibelius in July 2006. The segment’s operating income increased due to slightly lower operating expenses than in 2005. But it expects operating expenses to increase in this segment in 2007.