Thread regarding Avid Technology Inc. layoffs

The promised turn-around was nothing but a nice story

In April 2017 the executive staff proclaimed the AVID Transformation was complete. As a result profits would come pouring in and the stock would soar (double, triple or quadruple). Even if that happens it will still be a long, long way from the $65 it once was. 5+ quarters later. No profit, the stock price has been stagnant and the corporate debt continues to go in the wrong direction. At least there has been an improvement in the atmosphere thanks to Louis and his unethical, inappropriate misconduct being shown the door. It is hard to buy in to the executive staff sales pitch that we are positioned for a major turnaround when some of them dump stock options. Here is an example:

This doesn't show strong sentiment or belief with regard to the promised turn-around. Considering the huge salary that way too many Avid "executives" make, why sell a stock destined to increase significantly in the very near future. (would seem you are not a believer). Glad Louis is gone and there have been some improvements in the atmosphere. But this type of action makes one seriously doubt that revenue and profit will come pouring in and the stock price will soar. We need profit. Our loans and debt are way too high. Probably time for more layoffs.

Originally posted on another thread as a reply ( @V9NKRfw-Njba )

| 1796 views | | 5 replies (last )
Post ID: @OP+VXyXBCd

5 replies (most recent on top)

Regarding the member of the executive staff who dumped stock options. It was a smart move, particularly since they are the SVP, Global Services & Support. They know how bad it is on the front lines and how unhappy customers are with the poor reliability of Avid products. In particular the 1/2 baked release of new products with zero innovation.

Post ID: @fetz+VXyXBCd

Stagnant is an under-statement. We just make a lot of noise about nothing, it is desperation pointing and screaming "Look at this specific exaggerated statement when we report our quarterly results". Gee, Like true investors can't see the true picture. Smart investors and investment firms are exactly that, which is "Smart". They see the true financial Data and results while the town cryers scream about a specific metric or two which are meaningless. Try to get investors to focus on "hype" statements. Further insulting the intelligent investment community. As I look around Avid everyday and see what is going on two things come to mind ...... Sears and Toys R Us. That is the path we are headed. The debt is enormous and continues to grow. If we cut all the useless significantly over-paid executive salaries that would be a great first start. 90% of the management staff would never be missed. We have so many senior managers , directors, senior directors, VP's etc. Directors and senior directors who have no direct reports? Yep, that certainly is a winning formula and great way to have a stream-lined efficient organization. The ratio seems to be 3 individual contributors per management executive. Invest your hard earned money elsewhere. There is no miraculous turn-around in the future for this organization, just a lot of screaming that we are going to do this or we are going to do that...... which we can never do since we are the most top-heavy company that ever existed. It's sad, but if you were one of us rare individuals who survived 15 years or more, you can say that once upon a time it was a great company. Many of my long term co-workers had no problem when the Grimm reaper called their number and 90% who I have continued to stay in contact with are so happy in their new roles at another organizations. They strongly recommend to "get out". Great advice certainly because we are headed nowhere and the severance package is now just awful. We let go of many of our most exceptional people and where we did replace them we replaced them with lower priced clowns 🤡. Congrats to those of you who moved on and found much better career paths and happiness with stable, profitable well run organizations. Expect people to continue to leave, while we hire incompetent tier 3 and tier 4 employees to try and stay afloat. We are sinking because all of our innovative thinkers and individual contributors who could deliver on innovative ideas are all just about gone. Add the enormous anchor of the salaries from top heavy management (way, way too many management people who's only contribution is to talk) and the future is bleak. If you are a realist and you work here you are quite aware of the true state of affairs

Post ID: @etjp+VXyXBCd

How are we ever going to make those debt payments

Post ID: @bxln+VXyXBCd

I guess one would have to ask, is there anyone who still works at Avid that would actually care to step up with any ideas, new products, innovative ideas to enhance current product suite, and the actual skill to do it? If so, now would probably be the time to step forward to prevent all this doomsday scenario suggestion. Truly, if there is anyone with the skill or talent to help with their hands and mind rather than tear down with words, one would guess that the others at Avid would more than welcome the contribution. If there is no one in the talent pool left with any creativity or ideas to push the company forward then maybe they do need to replace you with fresh minds who actually want to get things done. Being of long tenure with all that knowledge but sitting stagnant and living in the past with zero thought about how to further innovate and make things better is certainly of no help.

Post ID: @9wnd+VXyXBCd

The latest figures for 2018 Q3 suggest further lay-offs could be in the pipeline -

Net Revenues, Products:

Nine months ending 2017: $152.98m

Nine months ending 2018: $144.92m down 5%

Net Revenues, Services:

Nine months ending Sept 30, 2017: $54.32m

Nine months ending Sept 30, 2018: $52.13m down 4%

Net Income (Loss):

Net Loss for Nine months ending Sept 30, 2017: $12.67m

Net Loss for Nine months ending Sept 30, 2018: $16.58m 31% increase in loss

Those figures are not as negative as they might have been. Some key indicators are pointing North and of course the CFO in his statement is pointing at those like mad, despite the overall trend being a loss of revenues and increasing losses and debts.

More worryingly, long-term debt has risen yr-on-yr from c.a. $205m to $230m. Total liabilities are down from $503m to $421m, though that includes a big drop in deferred revenues (payment in advance for goods/services not yet delivered) from $195m to $88m yr-on-yr.

That fall in deferred payments could imply a falling off of some types of revenue streams (major installations perhaps?) and if we take that out, the overall trend for liabilities of all other sorts is sharply up from $300m to $333m yr-on-yr. That is about $100m more than the market cap of the company!

Post ID: @6qeu+VXyXBCd

Post a reply