Avid Technology, Inc. (NASDAQ: AVID) today announced that on November
14, 2013 it received an anticipated letter from the staff of the NASDAQ
Listing Qualifications Department (the “Staff”) noting that the Company
was not in compliance with NASDAQ Listing Rule 5250(c)(1) due to its
failure to file on a timely basis its Form 10-Q for the quarter ended
September 30, 2013, which filing deficiency could serve as an additional
basis for the delisting of the Company’s stock from The NASDAQ Global
Select Market. As previously announced, the NASDAQ Listing
Qualifications Hearings Panel (the “Panel”) granted the Company’s
request for continued listing on NASDAQ through March 14, 2014, by which
date the Company must evidence compliance with all applicable
requirements for continued listing on NASDAQ, including the filing of
all required periodic reports with the Securities and Exchange
Commission.
In response to the NASDAQ notification, the Company will provide
additional information to NASDAQ regarding the Company’s ongoing
progress with the restatement efforts and plan to evidence compliance
with all requirements for continued listing on or before March 14, 2014.
The Company's cash balance on September 30, 2013 was $50.2 million. The
Company expects that additional cash expenditures related to the ongoing
accounting evaluation through completion of the evaluation will amount
to approximately $22 million to $29 million.
Cautionary Note Regarding Forward-Looking Statements.
The information provided in this release includes forward-looking
statements that involve risks and uncertainties, including statements
about Avid's anticipated plans, objectives, expectations and intentions.
Such statements include, without limitation, statements related to the
timing of the completion of the restatement efforts and the estimated
costs related to the Company's ongoing accounting evaluation of its
current and historical accounting practices. These forward-looking
statements are based on current expectations as of the date of this
filing and subject to known and unknown risks and uncertainties that
could cause actual results to differ materially from those expressed or
implied by such statements, including but not limited to: the impact of
restatement of financial statements for prior periods; the impact of
delays in Avid's completion of its financial statements and the filing
of its periodic reports; the impact of the previously disclosed ongoing
SEC and Department of Justice inquiries; the impact of the ongoing
evaluation and these inquiries on Avid's financial results and financial
statements for the quarter ended September 30, 2013 and prior and future
periods, including the costs associated with the evaluation and
inquiries; Avid's ability to regain compliance with NASDAQ's continued
listing requirements; the identified material weakness in Avid's
internal controls; recent changes in Avid's management; Avid's ability
to execute its strategic plan and meet customer needs; its ability to
produce innovative products in response to changing market demand,
particularly in the media industry; risks related to litigation;
competitive factors; history of losses; fluctuations in its revenue,
based on, among other things, Avid's performance in particular
geographies or markets, fluctuations in foreign currency exchange rates
and seasonal factors; adverse changes in economic conditions; and Avid's
liquidity. Moreover, the business may be adversely affected by future
legislative, regulatory or tax changes as well as other economic,
business and/or competitive factors. The risks included above are not
exhaustive. Other factors that could adversely affect Avid's business
and prospects are described in the filings made by the Company with the
SEC.
Avid expressly disclaims any obligation or undertaking to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise.
About Avid
Through Avid Everywhere, Avid delivers the industry's most open,
innovative and comprehensive media platform connecting content creation
with collaboration, asset protection, distribution and consumption for
the most listened to, most watched and most loved media in the
world—from the most prestigious and award-winning feature films, music
recordings, and television shows, to live concerts and news broadcasts.
Industry leading solutions include Pro Tools®, Media Composer®, ISIS®,
Interplay®, and Sibelius®. For more information about Avid solutions and
services, visit www.avid.com,
connect with Avid on Facebook,
Twitter,
YouTube,
LinkedIn,
Google+;
or subscribe to Avid
Blogs.
© 2013 Avid Technology, Inc. All rights reserved. Avid, the Avid
logo, Media Composer, Pro Tools, Interplay, ISIS, and Sibelius are
trademarks or registered trademarks of Avid Technology, Inc. or its
subsidiaries in the United States and/or other countries. The Interplay
name is used with the permission of the Interplay Entertainment Corp.
which bears no responsibility for Avid products. All other trademarks
are the property of their respective owners.
Copyright Business Wire 2013