Big AVID shakeup

[ahhaa]

wonder what's going on at AVID; from the editing giant's CEO, Gary Greenfield:


* We are combining all of our sales, marketing and service across the company into one common organization: Customer Operations - led by Kirk Arnold. Customer Operations will act as a single, integrated unit representing the majority of the customer facing teams - such as sales, marketing, product marketing and service - for all of the top-level markets we serve, including Video, Audio, and Education.

* We are re-aligning our business units to have their full attention and focus on product development. These units will include a Video Business Unit - led by Paul Lypaczewski and an Audio Business Unit - led by Tex Schenkkan. Paul joins Avid with more than 25 years of deep industry experience, having held leadership positions at ATI and Autodesk Media and Entertainment, and Tex is assuming this leadership role having been the COO of the Audio group for the past two and a half years. Both the Video BU, which now includes all of our professional and consumer video lines and the Audio group which includes Digidesign, M-Audio and Sibelius, will be integrated teams comprised of both engineering and product management.

* On the service and support side, we've created a new Customer Success organization, led by Beth Martinko. Customer Success is an integrated team chartered with our technical service and support efforts for all of our offerings - from professional to consumer, and video to audio.

* We also have a new Chief Technology Officer - Dave Lebolt. Dave, who moves over from GM of the Audio Group, has very strong technical knowledge of our entire company's audio and video product portfolio. As we move forward, Dave will play a pivotal role in ensuring that we continue our history of innovation in the digital media space. He'll ensure that we set the right priorities, align our resources to deliver new and emerging product solutions, and deliver an exceptional user experience that enhances the way our customers work in the future.

* We have created an Administrative Operations organization - led by Ken Sexton. Ken has been overseeing our Finance, HR, IT and Legal functions since he joined the company earlier this year. Ken's group will now include Operations (e.g., manufacturing, quality assurance, strategic supply chain, etc.) for all of our lines - from professional to consumer, and video to audio.

* Our Corporate Development organization will continue to examine Avid's growth strategy with respect to addressing industry trends through acquisition, third-party partnerships and other strategic business development opportunities.


http://www.avid.com/email/2008_07_28_letter_from_CEO/index.html

[stiltman]

It's called a slow death.

Avid used to have the corner on the market, and everything was proprietary. Now there are a lot more companies doing the same thing but with off the shelf products and non-proprietary setups.

First step was last year when they consolidated their product lines.
Look for the sell-off of M-Audio as the next step.

[rallynavvie]

Yeah I was wondering why Avid was still around. With more tech-savvy people in the marketplace today companies can have a workstation tailored for them internally with base resources. The only advantage I see to Avid systems is their support for their systems, but IBM and HP offer support on non-OEM builds now so what?

Beware of the NLE-addicts that will attack you if you say ill of them though.

[edDV]

Video guy from ATI and tech guy from GM? Where are they taking this company?

None of the people mentioned come from the professional video industry.

[SCDVD]

I think AVID is WAY too focused on playing their stockholders and the stock market. They are constantly stirring things up in ways that they think will make the company look good to the stock market. All this flapping around makes them unpredictable and a risky company to customers because there is no telling what they may be up to next.

[stiltman]

You also have to look at where their market is headed. Avid's major income comes from the TV market. The TV market is now moving to DTV and in a lot of cases HDTV. This means a lot of equipment is being changed out. Package deals are being made. Avid's prices are sky-high, and their competitors are under cutting them. Plus, throw in a crappy economy, and it's a no brainer. Cost rules out.

[SCDVD]

How is some joker from GM's Audio Group equipped to be the Chief Technology Officer for AVID's products? Give me a break! That press release is just puffery for Wall Street. The kiss-ass and schmoozing in the management at AVID must be nauseating to see. I'm sure a lot their talent has left or will leave. That crap is really hard to be around.

[edDV]

AVID is a strange company that has rarely produced earnings but keeps getting refinanced. This of course dilutes prior investors. Yet Charles Schwab rates this stock an A!? They must have some turnaround story that Wall St. is buying. But Wall St. analysts also liked CitiGroup's fiction.



Also, How can institutions hold 111% of shares?

[rallynavvie]

Also, How can institutions hold 111% of shares?

That's a sure sign of a hot stock if they offer more shares than they have money to back them with

[edDV]

Also, How can institutions hold 111% of shares?

That's a sure sign of a hot stock if they offer more shares than they have money to back them with

Institutions are mostly pension funds. Watch out!

[SCDVD]

A good investment house in their due diligence would "smell" problems but a hustle joint gets all wrapped up in the name dropping of key executives and falls for the "buy" reflex.

[edDV]

A good investment house in their due diligence would "smell" problems but a hustle joint gets all wrapped up in the name dropping of key executives and falls for the "buy" reflex.

This stock is too small to get adequate coverage.

[SCDVD]

This stock is too small to get adequate coverage.

I think that is exactly the problem and why it looks like a good buy on the surface. It's not getting a good analysis because of its size.

[edDV]

Most likely a new majority owner. Probably looking to sell to Sony or Philips at premium to US market due to currency exchange rate.