Avid shares slide on weak 1Q revenue outlook

Avid shares slide after 1st-qtr. revenue outlook misses Wall Street's expectations

Associated Press

BURLINGTON, Mass. (AP) -- Shares of Avid Technology Inc. slid 17 percent before the market open on Thursday after the company's first-quarter revenue outlook fell below Wall Street's expectations.

The Burlington, Mass., company also said Wednesday that it expects an operating loss in the January-March quarter.

The maker of equipment and software for recording music and video said it anticipates about $152 million in revenue for the period ended March 31. Analysts surveyed by FactSet predicted revenue of $160.8 million.

Lower demand from home studio customers such as amateur musicians and DJs led to a 30 percent decline in revenue in a division Avid calls creative enthusiast. Avid said its other business was down modestly compared with last year.

The company anticipates a first-quarter loss before interest expenses and taxes of about $15 million, or a loss of $8 million after also taking out restructuring and acquisition-related costs and other items. That compares with a profit of $900,000, excluding expenses, income taxes and one-time items, in the first three months of 2011.

Avid said it expect to report full first-quarter financial results on April 26. Its stock dropped $1.78 to $8.50 in premarket trading. Shares are up 20.5 percent in 2012, but have dropped 51 percent over the past 12 months.

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