Avid Technology (AVID) Sees Q4 Bookings Topping Expectations

Avid (Nasdaq: AVID) announced that it anticipates its 2015 fourth quarter bookings will exceed expectations implied by its previously issued guidance and will be an estimated $191 million, which is 21% higher than the top end of the level implied by its prior guidance and 25% higher than reported bookings for the fourth quarter of 2014. On a constant currency basis, estimated fourth quarter bookings of approximately $199 million were 23% higher than the top end of the level implied by its prior guidance and 28% higher than the constant currency bookings for the fourth quarter of 2014. For the full year, estimated reported bookings of $536 million and estimated constant currency bookings of $560 million were both 7% higher than the top end of the prior guidance.

The adoption of Avid’s unique enterprise-wide platform-based approach continues to build momentum and is a further proof point that Avid’s transformation strategy is working, underscoring Avid’s growth potential. The recent announcement of a record ten-year managed services contract with Sinclair Broadcast Group highlights a year that saw strong adoption of the Avid platform by some of the most sophisticated global media organizations.

“Our customers are becoming increasingly aware of how Avid Everywhere and the MediaCentral Platform can address their business challenges,” said John Frederick, Executive Vice President, Chief Financial and Administrative Officer. “While you shouldn’t measure our progress on the transformation based on one quarter’s bookings performance, we are naturally very encouraged by the progress.”

These results are preliminary and therefore subject to Avid’s completion of its fourth quarter closing and review procedures. Accordingly, all other Company guidance remains unchanged with no additional adjustments currently contemplated. Avid expects to release its fourth quarter and fiscal year-end financial results and hold its related quarterly conference call in early March 2016. Details for accessing the conference call will be issued prior to the call.

A definition of “bookings”, which is an operational metric, is included in the Form 8-K that Avid filed today.

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