Avid have commented to allay any fears on the future of the company following their statement made on February 26th about their shares being delisted from the NASDAQ stock market.
Several articles and industry blogs have now been posted with misleading information about Avid’s finances and business standing. Below is some information explaining why Avid's share were delisted, and targets for when they hope to be relisted.
Avid’s de-listing from NASDAQ and its subsequent listing on OTC is the result of delays in the reporting of financial information -- it was not related to operating performance in any way; As Avid has previously reported, as a result of the restatement, previously issued financial statements are not accurate and should not be relied upon.
Avid is continuing to work very hard to correct the accounting, which is related to nearly 5 million transaction lines spanning eight-and-a half years. They announced that they are targeting completion of the restatement by mid-2014.
Avid continues to invest in product innovation. Since the beginning of the restatement process, the company released Pro Tools 11, Media Composer 7, Sibelius 7.5, two new online shared storage offerings, a brand new mixing console – the S6, as well as a new live sound system – Avid S3L.
With a compelling Avid Everywhere vision established, the launch of the ACA, a significant number of new product innovation announcements planned for 2014, Avid believes it remains well positioned to support their customers’ ongoing success.
Company Update Video Yesterday Avid posted a video webcast on their Investor Relations website to provide customers with more details about our financial standings and to share an overall update on Avid’s vision and strategy.
In the video, John Frederick, Avid's Chief Financial Officer and Chief Administrative Officer, reviews their accounting restatement process, auditor change, and current status with NASDAQ, explaining that they are targeting mid-2014 for completing the restatement and regaining compliance with the listing requirements. Avid plan to apply for prompt relisting on NASDAQ as early as possible after regaining compliance with the listing requirements.
Following the financial overview, Louis Hernandez Jr., President and CEO, talks about their vision and strategy for the industry, providing details about the Avid Everywhere platform and Avid Customer Association.
The 41-minute video can be viewed on Avid’s Investor Relations page: http://ir.avid.com/.