By Ian WyattNEW YORK (
The restructuring effort comes from a new management team that's hoping to return the company to profitability after four losing years. With a number of recent awards, the company is well poised to grow market share, and investors could be increasingly bullish if Avid can get back in the black. Just recently, Avid won an Emmy Award, its 13th, and it counts two Oscars and a Grammy to its credit. In 2009, Avid products were used in producing the 10 highest-grossing films. Analysts who follow Avid Technology are somewhat neutral about the stock: one buy, four holds and one sell. The consensus estimate in 2010 is for a loss of 5 cents per share -- but in 2011, analysts expect to see profitability of 37 cents a share. Revenue is expected to grow 5% to $663 million in 2010 and the company issued 2011 guidance forecasting additional 5% revenue growth. After a December meeting with management, JPMorgan noted that Avid "...is entering a recovery phase under the new management team...and we think a new-product cycle positions the company to maintain market share in a modest cyclical recovery..." After a nice bounce in 2010, and with signs of increased tech spending by companies and an updated product line, Avid could reward investors in the year ahead.
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