Sony Pixel Power calrec Sony

Avid Technology Announces Next Milestone in Company Transformation

01/03/2016

Avid (Nasdaq:AVID) ( Avid or the Company ), a leading technology provider for the creation, distribution and monetization of media assets for global media organizations, enterprise users and individual creative professionals, today announced actions estimated to yield up to $68 million of annualized efficiency gains and the closing of a new $105 million senior secured credit facility as the Company continues to execute on its multi-year strategic, financial and operational transformation, on track and scheduled for completion by Mid-2017.

Since we began Avid's transformation, the Avid Everywhere vision - to build our portfolio of products as applications on a single platform, the Avid Media Central platform- has been central to our strategy to solve the industry's most important issues with greater innovation, flexibility and efficiency. Avid is in the final stretches of its dramatic transformation and we're pleased that the growing adoption, stability and maturation of the Media Central Platform will now allow us to fully realize its potential to drive a more efficient operating model by eliminating components and processes that are no longer required with a single global platform. said Louis Hernandez, Jr, Chairman, President, and CEO of Avid.

Our clients and community are fully supportive of our vision as demonstrated by the hundreds of large and sophisticated global media companies who have purchased over 32,000 Media Central licenses, punctuated by the record contract with Sinclair Broadcast Group signed in December 2015. Clients everywhere are enjoying the benefits of the platform as they look to capitalize on major industry shifts in the media landscape. For Avid, 2016 will be marked by a focus on additional platform-enabled growth and efficiency initiatives, which will demonstrate our ability to generate a meaningful financial return for our shareholders.

Platform Enabled Efficiency Gains Accelerate in 2016

As a direct result of Avid's platform strategy, the Company expects to realize more efficient operations and achieve annualized efficiency gains of up to $68 million. It is expected that these efficiencies will be fully reflected in the Company's full-year 2017 results, with $40-$45 million reflected in the Company's 2016 results. The efficiency gains are expected to use approximately $25 million of cash to be paid out throughout 2016 and the first half of 2017 with the corresponding expense recognized throughout 2016.

The main drivers of the efficiency gains are:

A new level of maturation of the Avid Media Central platform - Because Avid can now share common technology tools across its portfolio and third-party products, it is able to reduce or eliminate the need for stand alone, siloed processes and redundant workflows.

Complete final phase of talent alignment and facilities rationalization program - Avid is putting the right people in the right roles in the right locations with the right cost structure which will position Avid for the end of its transformation in 2017.

In connection with this effort, redundant offices will also be closed or downsized.

Personnel related savings account for two-thirds of overall efficiency gains. Many of the personnel related actions have already been completed with savings expected to be realized on an accelerated basis with each successive quarter. The remainder of the efficiencies will be achieved through consolidating and darkening underutilized facilities and further rationalizing spend on external vendors.

We are on track to complete Avid's transformation by the middle of 2017 and position the Company for long-term sustainable and profitable growth, added Mr. Hernandez.

Strengthened Balance Sheet

In connection with the announced cost efficiency program, the Company has entered into a new five-year, $105 million senior secured credit facility, which consists of a $100 million term loan and an undrawn $5 million revolver. Proceeds from the term loan will be used to replace the Company's existing $35 million revolving credit facility, finance the Company's efficiency program and other transformation initiatives, and provide operating flexibility throughout the remainder of the transformation in this period of heightened market volatility. The Company estimates that after paying for both debt issuance costs and the efficiency program, the new financing will provide approximately $70 million of available liquidity, about half of which replaces the existing revolving credit facility with the remainder providing incremental liquidity to strengthen the Company's balance sheet.

The new debt facility further strengthens our liquidity position and supports the execution of the last leg of our transformation, including the efficiency program, said John Frederick, Chief Financial and Administrative Office of Avid. We continue to expect positive adjusted free cash flow generation in 2016, although we do anticipate using cash in the first half of the year as we execute on the cost initiatives. We look forward to updating the investor community on our 2015 results and 2016 guidance, as well as sharing more details behind the 2016 growth and efficiency initiatives, in our fourth quarter and full-year 2015 earnings and business update call, scheduled for March 15th, 2016. We now have a capital structure that we believe allows us to make the investments necessary and finish executing on our plan.

The credit facility matures in February 2021, but is subject to an earlier maturity date in May 2020 if the Company has not refinanced its Senior Unsecured Convertible Notes by that time. The credit facility accrues interest at LIBOR plus 6.75%, with a 100 basis point floor, a 1% annual anniversary, excess cash flow sweep requirements and customary maintenance financial covenants, including max
LINK: https://news.creativecow.net/story/880919...
See more stories from creativecow

Most recent headlines

03/06/2024

Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives

Dalet, a leading technology and service provider for media-rich organizations, a...

28/04/2024

Mediahaus delivers the first SRT live-streaming sports production over 5G with URSA Broadcast G2

Mediahaus delivers the first SRT live-streaming sports production over 5G with U...

28/03/2024

The 4K cameras giving audiences an astronaut's view of Earth

TVBEurope meets Charles Black, founder and CEO of Sen, which has sent a payload of 4K cameras to the ISS to livestream images of Earth to audiences around the w...

28/03/2024

2024 Big Night In Raises $145k to Support Triangle Arts Councils

Capitol Broadcasting and WRAL-TV once again proudly supported our local arts community with the broadcast of Big Night in for the Arts Thursday, March 7, 2024. ...

28/03/2024

JIC, MRC Announce Accord On Roles In Judging Measurement Companies

With more companies offering different approaches to measuring television viewing and campaign effectiveness, two of the groups that evaluate potential media bu...

28/03/2024

Hulu Added to Disney Plus App for Bundle Subscribers

The Walt Disney Co. said that it launched Hulu on Disney Plus, which makes Hulu programming available via the Disney Plus app....

28/03/2024

GroupM To Double Ad Spending On Women's Sports Programming

Giant media buyer GroupM said it plans to double its media spending on women's sports....

28/03/2024

Scripps Renews State Farm As Sponsor of Friday Night WNBA on Ion

Scripps Sports said that State Farm has signed a new multi-year agreement to continue as the title sponsor of Ion's Friday night WNBA telecasts....

28/03/2024

Elisabeth Moss, Kerry Washington Sign On for Imperfect Women' on Apple TV Plus

Elisabeth Moss and Kerry Washington will star in, and executive produce, Imperfe...

28/03/2024

Telemundo Station Group Addresses Climate Change With Month-Long Initiative

Telemundo Station Group launches the month-long climate change initiative Our Planet Thursday, March 28. The multiplatform campaign ends on Earth Day, April 22,...

28/03/2024

Circle City Broadcasting Renews Nielsen Ratings Deal

Nielsen said that Circle City Broadcasting, owner of WISH-TV in Indianapolis, has renewed its local TV measurement deal....

28/03/2024

Lionsgate Extends Deal With Seth Rogen's Point Grey Pictures

Lionsgate Television said it extended its deal with Point Grey Pictures, the production company led by Seth Rogen, Evan Goldberg and James Weaver....

28/03/2024

Ariana DeBose Back as Tonys Host

Ariana DeBose returns as host of the Tony Awards Sunday, June 16, on CBS and Paramount Plus. It is her third consecutive time hosting, and it will be the 77th T...

28/03/2024

The Steve Wilkos Show' Renewed for Season 18

The Steve Wilkos Show has been renewed for its 18th season in national syndication, Tracie Wilson, executive VP, NBCUniversal Syndication Studios & E! News, sai...

28/03/2024

Sinclair Selects Embrace as Its Media Orchestration Engine

PARIS Embrace, a developer of advanced automation and orchestration software solutions, has announced that Sinclair Broadcast Group has selected Embrace's P...

28/03/2024

Nielsen and Circle City Broadcasting Renew Local TV Measurement Deal

NEW YORK Nielsen has a multi-year renewal with Circle City Broadcasting, Indianas only locally owned and operated broadcast and digital news media network, for ...

28/03/2024

JVC to Demo Its First Ever 40x Zoom PTZ Camera Series at 2024 NAB Show

LAS VEGAS JVC Professional Video has announced that it will debut its new KY-PZ540 Series PTZ Cameras with 40x zoom at 2024 NAB Show (Booth C4720)....

28/03/2024

Brightcove Launches Cloud Playout 2.0

BOSTON Brightcove has announced the launch of Cloud Playout 2.0, a platform that the company said will offer customers new ways to create linear channels, monet...

28/03/2024

NBC Sports Chicago to Air First-Ever Animated Real-Time Local Sports Telecast

The Chicago Blackhawks and NBC Sports Chicago have announced a collaboration with the NHL to bring fans the first-ever local animated real-time sports telecast....

28/03/2024

The Best News Coverage is Real, Live, Balanced, Professional

The Best News Coverage is Real, Live, Balanced, Professional Andy Marken March 28, 2024 0 Comments Hero image source News of the World, Perfect Wo...

28/03/2024

Generations: The Legacy - Wednesday's episode, 27 March 2024 [VIDEO]

Generations: The Legacy - Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The S...

28/03/2024

Prison Journalism: Witness the Cycle from the Streets

Prison Journalism: Witness the Cycle from the StreetsWesley Leong was incarcerated at the age of 15 in 1996 at Pollsmoor Prison. He is currently part of Restore...

28/03/2024

Prison Journalism: Inmate pre-release and release processes

Prison Journalism: Inmate pre-release and release processesDean Mashimbwe, a Zimbabwean migrant residing in Cape Town, was incarcerated at Pollsmoor Correctiona...

28/03/2024

Streaming today: When You Finish Saving The World' on Netflix - 28 March 2024

Streaming today: When You Finish Saving The World' on Netflix - 28 March 20...

28/03/2024

Prison Journalism: The Story of Paulus

Prison Journalism: The Story of PaulusDavid van Nek was incarcerated in Pollsmoor Prison from 2013 until 2015 and participated in the restorative justice progra...

28/03/2024

Prison Journalism: Inside and Outside

Prison Journalism: Inside and OutsideFawaaz Adendorff was incarcerated in Pollsmoor Correctional Centre and participated in a Restorative Justice programme whil...

28/03/2024

Tonight on Muvhango: Imani escapes Khumo's hellhole

Tonight on Muvhango: Imani escapes Khumo's hellholeDon't miss Thursday, 28 March's riveting episode of South African soapie Muvhango on SABC 2 on DS...

28/03/2024

Tonight on Generations: Kea can sense her brother is hiding something

Tonight on Generations: Kea can sense her brother is hiding somethingDon't miss Thursday, 28 March's riveting episode of South African soapie Generation...

28/03/2024

Tonight on Smoke and Mirrors: Magolide and Tiny compete against each other

Tonight on Smoke and Mirrors: Magolide and Tiny compete against each otherDon't miss Thursday, 28 March's riveting episode of South African soapie Smoke...

28/03/2024

Tonight on Champions: Washington's struggle takes an unexpected turn

Tonight on Champions: Washington's struggle takes an unexpected turnDon't miss Thursday, 28 March's riveting episode of South African soapie Champio...

28/03/2024

Tonight on Scandal: Tibi's meltdown softens a teacher

Tonight on Scandal: Tibi's meltdown softens a teacherDon't miss Thursday, 28 March's riveting episode of South African soapie Scandal! on e.tv on DS...

28/03/2024

Tonight on Gqeberha: Lulama tells Thulani that she's pregnant with his child

Tonight on Gqeberha: Lulama tells Thulani that she's pregnant with his childDon't miss Thursday, 28 March's riveting episode of South African soapie...

28/03/2024

Tonight on My Brother's Keeper: Ndumiso has the wrong end of the stick

Tonight on My Brother's Keeper: Ndumiso has the wrong end of the stickDon't miss Thursday, 28 March's riveting episode of South African soapie My Br...

28/03/2024

Tonight on Skeem Saam: Lehasa doubles down on his ill-treatment of Pretty

Tonight on Skeem Saam: Lehasa doubles down on his ill-treatment of PrettyDon't miss Thursday, 28 March's riveting episode of South African soapie Skeem ...

28/03/2024

Thales speeds up its development of AI for defence

Facebook Twitter LinkedIn Thales, Europe's leading high-tech company in the civil and defence fields, has announced the creation of cortAIx, which bri...

28/03/2024

Get Cozy With Palia' on GeForce NOW

Ease into spring with the warm, cozy vibes of Palia, coming to the cloud this GFN Thursday. It's part of six new titles joining the GeForce NOW library of ...

28/03/2024

Smoke and Mirrors: Wednesday's episode, 27 March 2024 [VIDEO]

Smoke and Mirrors: Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The South Af...

28/03/2024

Muvhango: Wednesday's episode, 27 March 2024 [VIDEO]

Muvhango: Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The South African web...

28/03/2024

Gqeberha: The Empire - Wednesday's episode, 27 March 2024 [VIDEO]

Gqeberha: The Empire - Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The Sout...

28/03/2024

Skeem Saam: Wednesday's episode, 27 March 2024 [VIDEO]

Skeem Saam: Wednesday's episode, 27 March 2024 [VIDEO]Missed an episode of Skeem Saam? No problem! Watch the latest episode of your favourite South African ...

28/03/2024

House of Zwide: Wednesday's episode, 27 March 2024 [VIDEO]

House of Zwide: Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episode of South African soapie House of Zwide on The South Africa...

28/03/2024

My Brother's Keeper: Wednesday's episode, 27 March 2024 [VIDEO]

My Brother's Keeper: Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The So...

28/03/2024

Uzalo: Wednesday's episode, 27 March 2024 [video]

Uzalo: Wednesday's episode, 27 March 2024 [video]Stay up to date with the latest episodes of your favourite South African soapie on The South African websit...

28/03/2024

Scandal!: Wednesday's episode, 27 March 2024 [VIDEO]

Scandal!: Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The South African web...

28/03/2024

Umkhokha: The Curse - Wednesday's episode, 27 March 2024 [VIDEO]

Umkhokha: The Curse - Wednesday's episode, 27 March 2024 [VIDEO]Stay up to date with the latest episodes of your favourite South African soapie on The South...

27/03/2024

UKTV sets up second series of Dream Car Fixers for Yesterday and UKTV Play

Wednesday 27 March 2024 - UKTV has commissioned a second series of Dream Car Fixers (6x60) for leading factual channel Yesterday and free streaming service UKTV...

27/03/2024

Inside the Archives: It's Lights, Curtains, Action When Sundance Films Become Stage Productions

By Jen Scott It's time to unwrap those noisy candies and put your phone on ...

27/03/2024

Paving the Way' for Spotify's NextGen Scholarship Recipients

Spotify is committed to amplifying the voices of underrepresented groups, and that starts with empowering the creators who will shape our industry's future....

27/03/2024

Sencore and Showfer Announce Collaboration at NAB 2024, With a Brand-New Content Management and Distribution Solution

Las Vegas, NV, April 14-17, Booth W2401 Sencore, a leading provider of profess...

27/03/2024

Living Black, the longest-running Indigenous current affairs television program in Australia, returns for its 21st year with new guests

Living Black, the longest-running Indigenous current affairs television program ...