Avid Technology shares tumble on 3Q outlook
BURLINGTON, Mass. (AP) — Avid Technology Inc. on Monday projected a wider loss and drop in revenue for the third quarter.
The news sent the Burlington, Mass.-based company's shares tumbling more than 10 percent in premarket trading.
For the quarter ended Sept. 30, Avid said it expects a loss of between $17 million and $19 million, compared with a loss of $7.6 million in the same quarter last year.
Excluding $14 million in one-time charges, the maker of equipment and software for recording music and video said it expects the recent quarter's adjusted loss to total between $3 million and $5 million.
Revenue is expected to total between $125 million and $127 million, down from $164.7 million in the year-ago period. The recent quarter's revenue includes $4 million related to the company's July sales of its audio and video consumer-focused businesses.
Excluding that, Avid expects its revenue to total between $121 and $123 million, which compares with revenue from ongoing business of $143 million in the year-ago quarter.
The company attributed the drop in revenue to lower sales in its Americas region and transitional issues related to restructuring actions it announced in July.
Avid said it plans to release additional third-quarter results on Oct. 29.
Avid shares dropped $1.17, or 14 percent, to $7 in premarket trading.