Not a very promising report. What does this mean for the future of Pro Tools 12? You decide...
- "A turnaround stock promote that is really a money-losing melting ice cube masked by misleading revenue amortization and disingenuous communication," reads Copperfield Research's take on AVID Technology. It assigns a fair value of $5.53/share, 60% below current levels.
- Copperfield estimates now only has a 7%-8% share of the professional video editing market amid tough competition from Adobe, Apple, and Sony, and thinks its results have been "artificially overstated by the recognition of $888 million of deferred revenue 'created' retrospectively to the actual 2010 ending balance." The firm discusses at length how and why (in its view) this "non-economic, non-cash accounting artifact has distorted AVID's financials."
- In addition, Copperfield asserts Avid has "missed expectations for bookings, free cash flow, and revenues" in its two quarters since being relisted, and notes 2015 guidance is back-end loaded. "Using a very generous EV/EBITDA multiple of 18.0x for 2016 and 10.4x for 2017 (the same 10x multiple a sell-side analyst uses), we believe fair value for AVID's stock is $5.53..."
- Shares finished regular trading down 6.1%. Volume (2.7M shares) was far above a 3-month daily average of 342K.
Source: http://ift.tt/1HjAk82
- "A turnaround stock promote that is really a money-losing melting ice cube masked by misleading revenue amortization and disingenuous communication," reads Copperfield Research's take on AVID Technology. It assigns a fair value of $5.53/share, 60% below current levels.
- Copperfield estimates now only has a 7%-8% share of the professional video editing market amid tough competition from Adobe, Apple, and Sony, and thinks its results have been "artificially overstated by the recognition of $888 million of deferred revenue 'created' retrospectively to the actual 2010 ending balance." The firm discusses at length how and why (in its view) this "non-economic, non-cash accounting artifact has distorted AVID's financials."
- In addition, Copperfield asserts Avid has "missed expectations for bookings, free cash flow, and revenues" in its two quarters since being relisted, and notes 2015 guidance is back-end loaded. "Using a very generous EV/EBITDA multiple of 18.0x for 2016 and 10.4x for 2017 (the same 10x multiple a sell-side analyst uses), we believe fair value for AVID's stock is $5.53..."
- Shares finished regular trading down 6.1%. Volume (2.7M shares) was far above a 3-month daily average of 342K.
Source: http://ift.tt/1HjAk82
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