Avid postpones earnings report, citing accounting issues26 February 2013
Pro Tools developer Avid announced yesterday that it is postponing the release of its Q4 and full year 2012 financial results in order “to provide additional time for the company to evaluate its current and historical accounting treatment related to bug fixes, upgrades and enhancements to certain products which the company has provided to certain customers”.
The Massachusetts-based company was originally scheduled to issue the results today, Tuesday 26 February.
A statement posted on Avid’s website yesterday continues: “The need to evaluate the accounting treatment arose during its normal review of its financial results for the fourth quarter and full year 2012. [Avid] is working diligently to complete its evaluation, but is currently unable to estimate when the evaluation will be completed.”
The City’s reaction was not favourable, with Avid’s share listing on NASDAQ falling more than 11% as a result.
The news arrives two weeks after the troubled technology company named Louis Hernandez as its new CEO and president, replacing Gary Greenfield. On his appointment, Hernandez said: “It is an exciting opportunity to lead Avid at this very important juncture in the company’s history. The company is well positioned for growth and global expansion in this fast-moving marketplace. It is exciting to be working with the Avid team, as we drive results and value for our customers, employees, and shareholders.”