AVID TECHNOLOGY 4Q Profit Down 18%

(From All Associated Press News)

AVID TECHNOLOGY INC. on Tuesday reported fourth-quarter profit FELL 18% as the maker of digital editing systems racked up charges related to its acquisition of a rival.

Quarterly profit fell to $18.4 million, or 43 cents per share, from $22.5 million, or 61 cents per share, in the year-ago period.

Excluding acquisition-related charges totaling $10.1 million and other charges, operating profit was $30.1 million, or 69 cents per share.

Sales rose to $245 million from $175 million.

Results failed to reach WALL STREET expectations for profit of 72 cents per share on sales of $246.2 million, according to analysts polled by THOMPSON FINANCIAL.

In late March, Avid agreed to purchase the Mountain View, California-based video editing company PINNACLE in a cash and stock transaction valued at $462 million.

The move brought Avid into the market for home-video editing.

However, the deal took its toll on Avid's quarterly earnings. The company booked a non-cash acquisition related amortization charge of $10.1 million, and $1.2 million restructuring charges to vacate a facility and cut staff in Montreal.

Acquisition-related stock-based compensation and net tax provisions reduced profit by $394,000 during the quarter, the company said.

For 2005, Avid reported profit of $34 million, or 86 cents per share, on revenue of $775.4 million.

Excluding items, profit was $92.4 million, or $2.34 per share.