8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): April 24, 2008

AVID TECHNOLOGY, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware (State or Other Jurisdiction of Incorporation or Organization)		0-21174 (Commission File Number)	04-2977748 (I.R.S. Employer  Identification No.)
	Avid Technology Park, One Park West, Tewksbury, MA (Address of Principal Executive Offices)			01876 (Zip Code)
Registrant’s telephone number, including area code: (978) 640-6789
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

This Current Report on Form 8-K contains a number of forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, about the performance of Avid Technology, Inc. (the “Company”). For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects” and similar expressions are intended to identify forward-looking statements. There are a number of factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements, many of which are beyond the Company’s control, including the risk factors disclosed previously and from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. In addition, the forward-looking statements contained herein represent the Company’s estimate only as of the date of this filing and should not be relied upon as representing the Company’s estimate as of any subsequent date. While the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.

Item 2.02. Results of Operations and Financial Condition.

On April 24, 2008, the Company announced its financial results for the quarter ended March 31, 2008. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in Item 2.02 of this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:

99.1 Press Release issued by the Company on April 24, 2008.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 24, 2008	AVID TECHNOLOGY, INC. (Registrant)
	By:	/s/ Joel E. Legon                                  Joel E. Legon Vice President and Chief Financial Officer

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EXHIBITINDEX

ExhibitNo.	Description
99.1	Press release issued by the Company dated April 24, 2008.

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EX-99

Exhibit 99.1

Investor Contact:   Dean Ridlon, dean_ridlon@avid.com , 978-640-5309

Media Contact:   Lisa Pistacchio, lisa_pistacchio@avid.com , 650-930-3083

FOR IMMEDIATE RELEASE

Avid Reports First Quarter 2008 Results

TEWKSBURY, Mass. – April 24, 2008 – Avid Technology, Inc. (Nasdaq: AVID) today reported revenue of $198.3 million for the three-month period ended March 31, 2008, compared to $218.9 million for the same period in 2007. GAAP net loss for the quarter was $21.1 million, or $.54 per share, compared to GAAP net income of $20,000, or $.00 per diluted share, in the first quarter of 2007.

GAAP net income in the first quarter of 2008 includes $9.4 million of amortization, stock-based compensation, restructuring costs and related tax adjustments. Excluding these items, non-GAAP loss per share was $.30. For the first quarter of 2007, GAAP net income included $10.6 million of charges, including amortization, stock-based compensation, restructuring and related tax adjustments. Excluding these items, non-GAAP earnings per diluted share were $.25 in the first quarter of 2007.

At March 31, 2008, the company’s cash balance totaled $150.4 million, down $74.0 million since the end of 2007.  During the first quarter of 2008, the company used $93.2 million in cash to re-purchase 4.3 million shares of common stock under the previously-announced share buyback program.

“Our first quarter results were in line with our expectations and we expect to see improvement in our bottom line as the year progresses,” said Gary Greenfield, Avid’s chairman and chief executive officer. “We are continuing to make progress on a number of initiatives designed to provide the basis for improved profitability and growth.  In addition, the development of Avid’s long-term strategy is proceeding well and we expect to discuss the plan during our second quarter results conference call.”

Recent Highlights

Recent highlights include:

• The appointment of Kirk Arnold as executive vice president and general manager of the professional video business unit. Ms. Arnold, most recently chief executive officer at consulting firm Keane, Inc., has more than 25 years of experience in the technology industry, including leadership roles at Computer Sciences Corporation and IBM.

• Exceptionally strong recognition of Avid customers at the 80^th annual Academy Awards^® ceremony, where all of the winning and nominated films in the categories of Best Motion Picture, Directing, Film Editing, Sound Editing, Sound Mixing, Visual Effects, Documentary Feature and Original Score employed workflows that included multiple systems from the various Avid brands.

• Pinnacle Studio™ Ultimate version 11 winning PC Magazine's prestigious Editors’ Choice Award for consumer video editing software, bringing the number of consumer and retail awards received by the Pinnacle Studio product line to 36 since its May 2007 release.

• Further strengthening of the Avid management team, with the addition of Beth Martinko, formerly of WaveLight, Inc., as vice president of customer success and Ed Raine, formerly of EMC Corporation, as vice president of human resources.

• The launch of Avid’s New Thinking campaign in the professional video business unit, which includes expanded on-line customer support capabilities, a streamlined and value-priced editing line, special academic pricing for students and a new community website.

• Recognition of the Digidesign ICON integrated audio console by the Cinema Audio Society as the winner of the Technical Achievement Award in the post production category.

• The appointment of Louis Hernandez, Jr., chairman and chief executive officer of Open Solutions Inc., to Avid’s board of directors.

Use of Non-GAAP Financial Measures

This press release contains “non-GAAP financial measures” under the rules of the U.S. Securities and Exchange Commission.  This non-GAAP information supplements, and is not intended to represent a measure of performance in accordance with, disclosures required by generally accepted accounting principles, or GAAP.  The reconciliation for net income and diluted earnings per share for the three-month periods ended March 31, 2008 and 2007 are in the tables attached to this press release.

The company uses non-GAAP financial measures internally to manage its business, for example, in establishing its annual operating budget, in assessing segment operating performance and for measuring performance under employee incentive compensation plans. Non-GAAP financial measures are used by management in its operating and financial decision-making because management believes these measures reflect the company’s ongoing business in a manner that allows meaningful period-to-period comparisons. Accordingly, the company believes it is useful for investors and others to review both GAAP and non-GAAP measures in order to (a) understand and evaluate the company’s current operating performance and future prospects in the same manner as management does and (b) compare in a consistent manner the company’s current financial results with past financial results. The primary limitations associated with the company’s use of non-GAAP financial measures are that these measures may not be directly comparable to the amounts reported by other companies and they do not include all items of income and expense that affect the company’s operations. The company’s management compensates for these limitations by considering the company’s financial results as determined in accordance with GAAP and by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in this press release.

Conference Call

A conference call to discuss Avid’s first quarter 2008 financial results will be held today, April 24, 2008, at 5:00 p.m. EDT. The call will be open to the public and can be accessed by dialing (719) 457-2617 and referencing confirmation code 3538405. The call and subsequent replay will also be available on Avid’s website. To listen via this alternative, go to the Investor Relations page under the About Us menu at www.avid.com for complete details prior to the start of the conference call.

Use of Forward-Looking Statements

The above release is subject to the completion and filing of our Quarterly Report on Form 10-Q. This release includes forward-looking statements, as defined by the Private Securities Litigation

Reform Act of 1995, about Avid’s performance. There are a number of factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements, such as Avid’s ability to meet customer needs, market acceptance of Avid’s existing and new products, Avid’s ability to recognize revenue in a timely manner, competitive factors, pricing pressures, delays in product shipments and other important events and factors disclosed previously and from time to time in Avid’s filings with the U.S. Securities and Exchange Commission. In addition, the forward-looking statements contained herein represent Avid’s estimate only as of today and should not be relied upon as representing the company’s estimate as of any subsequent date. While Avid may elect to update these forward-looking statements at some point in the future, Avid specifically disclaims any obligation to do so, even if the estimates change.

About Avid Technology, Inc.

Avid is a worldwide leader in tools for film, video, audio, 3D animation, gaming and broadcast professionals – as well as for home audio and video enthusiasts. Avid professional and consumer brands include Avid^®, Digidesign^®, M-Audio^®, Pinnacle Systems^®, Sibelius^®, Softimage^® and Sundance Digital^®. The vast majority of primetime television shows, feature films, commercials and chart-topping music hits are made using one or more Avid products. Whether used by seasoned professionals or beginning students, Avid’s products and services enable customers to work more efficiently, productively and creatively. Avid received an Oscar^® statuette representing the 1998 Scientific and Technical Award for the concept, design, and engineering of the Avid Film Composer^® system for motion picture editing. For more information about the company’s Oscar, Grammy^® and Emmy^® award-winning products and services, visit www.avid.com.

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© 2008  Avid Technology, Inc. All rights reserved.  Avid, Digidesign, Film Composer, M-Audio, Pinnacle Studio, Pinnacle Systems, Sibelius, Softimage, and Sundance Digital are trademarks or registered trademarks of Avid Technology, Inc. or its subsidiaries in the United States and/or other countries. Emmy is a registered trademark of ATAS/NATAS. Academy Awards and Oscar are trademarks and service marks of the Academy of Motion Picture Arts and Sciences.  Grammy is a trademark of the National Academy of Recording Arts and Sciences, Inc.  All other trademarks are the property of their respective owners.

AVID TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited - in thousands, except per share data)

	Three Months Ended
	March 31,
	2008			2007
Net revenues:
Products	$	168,176		$	192,443
Services		30,090			26,455
Total net revenues		198,266			218,898
Cost of revenues:
Products		85,073			92,712
Services		17,387			15,979
Amortization of intangible assets		3,254			4,472
Total cost of revenues		105,714			113,163
Gross profit		92,552			105,735
Operating expenses:
Research and development		38,510			37,742
Marketing and selling		50,327			51,694
General and administrative		21,943			17,852
Amortization of intangible assets		3,387			3,432
Restructuring costs, net		1,063			258
Total operating expenses		115,230			110,978
Operating loss		(22,678	)		(5,243	)
Interest and other income (expense), net		1,481			1,895
Loss before income taxes		(21,197	)		(3,348	)
Benefit from income taxes, net		(49	)		(3,368	)
Net income (loss)	$	(21,148	)	$	20
Net income (loss) per common share – basic	$	(0.54	)	$	0.00
Net income (loss) per common share – diluted	$	(0.54	)	$	0.00
Weighted-average common shares outstanding – basic		39,362			41,154
Weighted-average common shares outstanding – diluted		39,362			41,763

AVID TECHNOLOGY, INC.

(unaudited - in thousands, except per share data)

Change in Financial Presentation

Historically, the Company has allocated to each of its three business units a percentage of certain corporate operating expenses, such as finance, human resources, legal and some information technology. Beginning this quarter, the Company is reporting a contribution margin for each business unit that excludes these corporate infrastructure costs and operating expenses to provide a clear view on the operating performance of each business unit. The Company is also presenting its 2007 comparative results using this methodology.

Summary of the Company’s revenues and contribution margin by reportable segment and a reconciliation of segment contribution margin to consolidated operating loss:

	Three Months Ended March 31,
	2008			2007
Revenues:
Professional Video	$	94,250		$	121,671
Audio		73,239			78,923
Consumer Video		30,777			27,304
Total revenues	$	198,266		$	218,898
Contribution Margin:
Professional Video	$	(1,320	)	$	11,384
Audio		10,870			13,070
Consumer Video		509			766
Segment contribution margin		10,059			25,220
Less unallocated costs and expenses:
Common costs and operating expenses		(22,888	)		(18,749	)
Amortization of acquisition-related intangible assets		(6,641	)		(7,904	)
Stock-based compensation		(2,145	)		(3,552	)
Restructuring costs, net		(1,063	)		(258	)
Consolidated operating loss	$	(22,678	)	$	(5,243	)

Reconciliation of GAAP net income (loss) to Non-GAAP net income (loss):

	Three Months Ended March 31,
	2008			2007
GAAP net income (loss)	$	(21,148	)	$	20
Adjustments to reconcile to Non-GAAP net income:
Amortization of intangible assets		6,641			7,904
Stock-based compensation		2,145			3,552
Restructuring costs, net		1,063			258
Related tax adjustments		(434	)		(1,115	)
Non-GAAP net income (loss)	$	(11,733	)	$	10,619
Weighted-average common shares outstanding – diluted		39,362			41,763
Non-GAAP net income (loss) per common share – diluted	$	(0.30	)	$	0.25

Stock-based compensation is composed of the following:

Stock-based compensation included in:	Three Months Ended March 31,
	2008		2007
Cost of products revenues	$	132	$	141
Cost of services revenues		98		197
Research and development expenses		363		1,043
Marketing and selling expenses		529		935
General and administrative expenses		1,023		1,236
	$	2,145	$	3,552

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited - in thousands)

	March 31,			December 31,
	2008			2007
ASSETS
Current assets:
Cash, cash equivalents and marketable securities	$	150,422		$	224,460
Accounts receivable, net of allowances of $20,606 and $20,784
at March 31, 2008 and December 31, 2007, respectively		119,844			138,692
Inventories		123,204			117,324
Prepaid and other current assets		36,064			36,788
Total current assets		429,534			517,264
Property and equipment, net		45,168			46,160
Intangible assets, net		64,786			71,427
Goodwill		360,486			360,584
Other assets		10,697			10,518
Total assets	$	910,671		$	1,005,953
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	41,761		$	34,992
Accrued expenses and other current liabilities		90,365			93,912
Deferred revenues		91,092			79,771
Total current liabilities		223,218			208,675
Long-term liabilities		17,235			17,495
Total liabilities		240,453			226,170
Stockholders’ equity:
Common stock		423			423
Additional paid-in capital		968,996			968,339
Accumulated deficit		(184,833	)		(155,722	)
Treasury stock at cost, net of reissuances		(130,117	)		(45,823	)
Accumulated other comprehensive income		15,749			12,566
Total stockholders’ equity		670,218			779,783
Total liabilities and stockholders’ equity	$	910,671		$	1,005,953