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NASDAQ: AVID) today reported revenues of $152.1 million for the three-month period ended March 31, 2012, compared to $166.3 million for the same period in 2011. The GAAP net loss for the first quarter was $15.6 million, or $0.40 per share, compared to a GAAP net loss of $5.1 million, or $0.13 per share, in the first quarter of 2011. These results are preliminary and are subject to Avid’s completion of its review of a recently identified tax matter described below.
The GAAP net loss for the first quarter of 2012 and 2011 included amortization of intangible assets, stock-based compensation, restructuring charges, acquisition and other costs for 2012 only and related tax adjustments collectively totaling $6.2 million and $4.3 million, respectively. Excluding these items, the non-GAAP net loss for the first quarter of 2012 was $9.4 million, or $0.24 per share, compared to non-GAAP net loss of $840 thousand, or $0.02 per share, for the first quarter of 2011.
The GAAP operating loss for the first quarter of 2012 was $15.2 million and excluding the items identified above, except tax adjustments, the non-GAAP operating loss for the first quarter was $8.5 million. A reconciliation of GAAP to non-GAAP results is included in the tables attached to this release.
“While revenues were down from last year primarily related to the creative enthusiast portion of our business, we see positive signs in the post and professional and our media enterprise markets as customers seek to become more competitive by moving to more seamless workflows,” said Gary Greenfield, chairman and CEO of Avid. “Our balance sheet is solid, ending the quarter with $50 million of cash and we remain committed to delivering sustained profitability.”
Avid is currently reviewing its prior tax and accounting treatment of an intercompany loan made in 2007 between two of its international subsidiaries. Avid’s preliminary financial results for the first quarter of 2012 do not reflect the potential impact of this matter, and the final conclusions and results of its review could impact Avid’s final financial results for the first quarter of 2012 and the results of prior periods. Based on the current status of its review, which is in its initial stages and subject to change, Avid currently believes that the impact of this matter could increase tax expenses by approximately $4.5 million. Avid also currently believes it would recover approximately $3.8 million of this amount in a subsequent period, resulting in a net tax expense of approximately $700,000 on a cumulative basis.