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Daniel McClintock
Serious Legal Stuff Happening at Avid
on Feb 27, 2013 at 4:46:13 am

Avid shareholders have announced two investigations into how SEC regulations were violated. They're asking for whistleblowers.

http://money.msn.com/business-news/article.aspx?feed=BW&date=20130226&id=16...

http://money.msn.com/business-news/article.aspx?feed=BW&date=20130226&id=16...

-------------------------

"Sometimes Life Needs a Cmd-Z!"


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Chris Harlan
Re: Serious stuff happening at Avid
on Feb 27, 2013 at 4:49:18 am

ALL CAPS OUCH


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Charlie Austin
Re: Serious stuff happening at Avid
on Feb 27, 2013 at 7:01:40 am

[Chris Harlan] "ALL CAPS OUCH
"


No kidding. I was actually gonna buy a copy of MC, but maybe I'll wait 'til they give it away for free as part of the liquidation. :-o

I need to add it to my collection. MC (trial for now), fcp7, fcpX, Pr, Motion, Resolve, STP, Logic, Protools, oh, and Reaper. It's hard to keep track of all the KB shortcuts, but hopefully I'll slow the onset of Alzheimer's...

Anyhoo... I feel sorry for the employees. Know some east coasters who used to work there. Great product, awful management. The "we have no competition / buy expensive hardware" business model ain't gonna work anymore...

-------------------------------------------------------------


~"It is a poor craftsman who blames his tools."~
~"The function you just attempted is not yet implemented"~


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Craig Seeman
Re: Serious stuff happening at Avid
on Feb 27, 2013 at 7:43:04 am

[Charlie Austin] "maybe I'll wait 'til they give it away for free as part of the liquidation. :-o "

I think when the shares drop down to 99¢ they're going to offer the share holders the option of cash or a free MC on the buy back.

I see all sorts of wild scenarios occurring . I think Netflix should pick this up as a series. It could rival House of Cards.

Some of the odd things is that the company has virtually no debt so I don't think a reorganization bankruptcy is viable. I think Finkelstein Thompson's strategy has been to force settlements rather than drawn out court cases (which can't be good for Avid). It looks like someone is trying to "force a hand" one way or another.

Unhappy Avid employees might make for the whistleblower they're looking for. Such employee may have a really tough time finding a job after that so I have a hunch they'll be value provided to them some way, some how.

Granted if no one steps forward nothing may come of it. Given the excuse for the postponement it sure looks like they have a bit target on them.



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Craig Seeman
Re: Serious Legal Stuff Happening at Avid
on Feb 27, 2013 at 7:22:56 am

They specialize in class action lawsuits along with civil rights and consumer protection.
They're also announced they're investigating Office Max as well relating to their possible sale to Office Depot.

Shark smells blood.


I'm beginning to think maybe Avid should consider buying back and going private.

BTW the "official" reason for Avid postponing the report, Avid Technology said it was evaluating "current and historical accounting treatment related to bug fixes, upgrades and enhancements to certain products which the company has provided to certain customers."

Awwrighty, seems those bug fixes may have had serious impact on their bottom line. Sure!
"By golly, we've been giving bug fixes away for free. We could be charing $199 a pop and that would fix the company right up."



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Andrew Kimery
Re: Serious Legal Stuff Happening at Avid
on Feb 27, 2013 at 8:07:42 am

I'm a financial laymen but could this be related to possible Sarbanes-Oxley violations? I remember a few years ago there was uproar because iPod Touch users had to pay for iOS upgrades where as iPhone users did not and it was because of a regulations in the Sarbanes-Oxley Act.


http://appleinsider.com/articles/09/10/21/inside_apples_iphone_subscription...




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Craig Seeman
Re: Serious Legal Stuff Happening at Avid
on Feb 27, 2013 at 8:28:06 am

I can see that applying to Avid is if there's a relation to service contracts which included bug fixes and updates vs others not under contract. Just very speculative though if this might be the relevancy of their looking at bug fixes and upgrades to certain customers.



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Oliver Peters
Re: Serious Legal Stuff Happening at Avid
on Feb 27, 2013 at 1:01:42 pm

Let's be careful not to convict based on what might simply be a legal firm's fishing expedition. Taxes and SEC rules are so complex at that level that almost every company can be in violation, depending on how you interpret the rules. The fact that they are asking for whistleblowers sounds like they don't actually have any information.

While this certainly is not good news, there are plenty of acceptable reasons for Avid's situation, much of it driven by market forces more so than anything else. The whole issue of how you count bug fixes has to do with SOX rules. When can you charge for a feature release verus a bug fix and when can you claim revenue from those sales. That makes for some pretty complex accounting.

Unlike Apple, they have no consumer cash cows to prop up low-revenue enterprise/pro development. It is believed that Apple has been unable to claim any revenues from FCP X until 10.0.6 because they pre-announced product features outside of a given quarter. That may or may not be true, but few other companies can afford to do that.

Oliver

Oliver Peters Post Production Services, LLC
Orlando, FL
http://www.oliverpeters.com


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Andrew Kimery
Re: Serious Legal Stuff Happening at Avid
on Feb 27, 2013 at 9:39:04 pm

Where's the fun if we aren't jumping to conclusions?




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Craig Seeman
Another Law Firm Investigates as well
on Mar 1, 2013 at 3:08:45 am

Another Law firm joins in the investigation.

http://www.4-traders.com/AVID-TECHNOLOGY-INC-8498/news/Avid-Technology-Inc-...

Sharks attracting more sharks.



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Craig Seeman
And more sharks errr law firms
on Mar 1, 2013 at 3:13:13 am

http://www.sacbee.com/2013/02/28/5225209/block-leviton-llp-investigates.htm...

Seems like the law firms are jumping all over this to see if there's a piece of pie to chew on.



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Oliver Peters
Re: And more sharks errr law firms
on Mar 1, 2013 at 3:14:55 am

Looks like to date there are at least 5 different law firms jumping on the "investigate Avid" bandwagon. Financial ambulance chasers.

- Oliver

Oliver Peters Post Production Services, LLC
Orlando, FL
http://www.oliverpeters.com


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Craig Seeman
Re: And more sharks errr law firms
on Mar 1, 2013 at 3:27:19 am

Yes, I'm finding the others.
At the moment it's just a PR issue unless somebody comes forward.

I do think the "indefinite" postponement is a concern. It sounds live a very deep internal investigation.



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Chris Harlan
Re: And more sharks errr law firms
on Mar 1, 2013 at 4:47:06 am

[Craig Seeman] "I do think the "indefinite" postponement is a concern. It sounds live a very deep internal investigation.
"


No question. Though considering they went through a major management reshuffle a few weeks ago, it could also mean that the Hernandez and Billings are trying to clean things up properly. I'm guessing that anytime a company puts off its earnings report, sharks hit the water "representing" shareholders. Here's Avid's response:

“We recognize there are questions about the delay of our Q4 and full year 2012 earnings announcement. We want to assure our customers, employees, business partners, and investors that this delay is due to a technical accounting evaluation, as stated in our press release. We continue to invest in product innovation and execute on our growth strategy, and have significant cash and liquidity, and no debt. We are well-positioned to support our customers’ ongoing success.

“In situations where companies have announced a delay in reporting earnings results, it is not unusual to see activity like this from certain law firms. However, according to our policy, we don’t comment on this type of activity.”

- See more at: http://www.sonicscoop.com/2013/02/28/avid-under-investigation-by-us-law-fir...


I know that you want to stuff them and mount them in your living room, but I'm willing to wait.


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Craig Seeman
Re: And more sharks errr law firms
on Mar 1, 2013 at 3:29:40 pm

It's good they've finally responded.

I can't help but think they're doing this because they're in a potential legal hot spot (before the law firms reared their teeth) and financial as well. That they postponed the call so close to the call date. That the CEO was changed just a couple of weeks before. That the accounting review might have more than minor impact on the earnings report. All the above means that they are reacting to serious problems rather than proactively trying create a new business model.

At the very best it seems they have a big mess to clean up before they even begin to look at their business model.



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Chris Harlan
Re: And more sharks errr law firms
on Mar 1, 2013 at 6:36:18 pm

[Craig Seeman] "t's good they've finally responded."

You are so funny, man. They didn't "finally" respond. They responded almost immediately.

[Craig Seeman] "I can't help but think they're doing this because they're in a potential legal hot spot (before the law firms reared their teeth) and financial as well. That they postponed the call so close to the call date. That the CEO was changed just a couple of weeks before. "

You "can't help but think" that because you hate the company so much. Its a passion with you. What you are saying may well be true, but it may not. We'll have to wait and see.

[Craig Seeman] "That the accounting review might have more than minor impact on the earnings report. All the above means that they are reacting to serious problems rather than proactively trying create a new business model. "

Clearly they are having problems. That's obvious. Putting off reporting shows that something is amiss. How deadly serious it is, or what it means to people using the software is something that none of us can determine at this point.


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Craig Seeman
Re: And more sharks errr law firms
on Mar 1, 2013 at 7:06:45 pm

[Chris Harlan] "You "can't help but think" that because you hate the company so much. Its a passion with you."

You mean like some people and Apple... but that's OK?


[Chris Harlan] "what it means to people using the software is something that none of us can determine at this point."

Unlike the predetermined conclusions the naysayers have about Apple?

Avid's problems have been longer standing than Apple's going back to pricing and service issues at the turn of the century to the more than a half a decade of losses up to the present. Apple is at least aggressively updating FCPX as the bring in new features (even if some simply don't like the paradigm) and they've been doing well their computers except for the MacPro which they announced will be addressed (although some may or may not like their solution).

One can make changes at least to attempt to handle issues... or not. Right now Avid falls into the "or not" category for me. In some respects they remind me of Commodore although that's a very loose comparison.
Avid has lots of rock solid tools and a management that has had problems for over a decade and apparently unhappy employees as well. The last few weeks seem to indicate another in a series of "last minute" changes to avert yet another series of problems. It's like the GPS that first announces "turn left" when you're already 10 feet into the intersection.



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Herb Sevush
Re: And more sharks errr law firms
on Mar 1, 2013 at 9:59:21 pm

[Craig Seeman] "It's like the GPS that first announces "turn left" when you're already 10 feet into the intersection."

You mean like Apple's Map AP for the iPhone.

Just having some fun with your metaphor Craig. I have no problem with your schadenfreude at Avid's expense.

Herb Sevush
Zebra Productions
---------------------------
nothin' attached to nothin'
"Deciding the spine is the process of editing" F. Bieberkopf


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Craig Seeman
Re: And more sharks errr law firms
on Mar 1, 2013 at 10:47:42 pm

[Herb Sevush] "You mean like Apple's Map AP for the iPhone."

Good example but they are supposedly working on that fix.

Apple has had their share of blunders. They usually attempt to fix them though... even if they don't always succeed. For me it's the ongoing .mac to .me to .icloud. Also the lack of quality H.264 encoding (no high profile nor CABAC from a company that says file delivery is the answer)

The problem I have with Avid for me is that I see a steady downward decline for what seems like over a decade. Sure there have been changes that some might see as improvements (customer service and MC/S pricing) but I wonder how that can be sustained when they've been losing money for years.



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Chris Harlan
Re: And more sharks errr law firms
on Mar 1, 2013 at 10:19:31 pm

[Craig Seeman] "[Chris Harlan] "You "can't help but think" that because you hate the company so much. Its a passion with you."

You mean like some people and Apple... but that's OK?
"


No. Its about the same.


[Craig Seeman] "[Chris Harlan] "what it means to people using the software is something that none of us can determine at this point."

Unlike the predetermined conclusions the naysayers have about Apple?
"


Again, about the same.


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Craig Seeman
Re: And more sharks errr law firms
on Mar 1, 2013 at 10:53:22 pm

[Chris Harlan] "No. Its about the same."

[Chris Harlan] "Again, about the same."

Glad that I'm providing so much balance to the forum ;)



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Chris Harlan
Re: And more sharks errr law firms
on Mar 2, 2013 at 5:01:11 am

[Craig Seeman] "[Chris Harlan] "No. Its about the same."

[Chris Harlan] "Again, about the same."

Glad that I'm providing so much balance to the forum ;)
"


Yes! We've got you on Avid, Aindreas on Apple, Herb on Autodesk and Lance on Adobe. I'd say it evens out marvelously.


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Mario Rodriguez
Re: And more sharks errr law firms
on Jun 4, 2013 at 11:28:01 pm

Avid will become the Blackberry of Video Editing Software... changed too late it's policy and I would say the two years of "FCPX Beta" situation until 10.0.08 has helped them to get some new customers flying from Apple. But it is just a matter of time and FCPX will get it's place again in the market. Apple is toooooo big to be oversight and is updating and updating FCPX every 3 to 4 months with great new features. You can only do that when you have a lot of money and Apple has plenty of it to get back it's market slowly... they are not in hurry.

So tell me why should I pay $999 "per license" to edit with Avid? what can I do with Avid MC that I'm not able to do with FCPX for $700 less. And If I have 10 machines, we are talking of $9.700 less. You could say that for some big network SAS oriented companies, Avid is the way, but how many customer are those? 200? and Avid MC is the entry product, if you want the Symphony we are talking about big bucks here. Again what can Symphony do that FCPX can beside network editing? Adobe just announce also a network editing tool for PP CS6... at a much cheaper price.

Avid is dying, slowly or fast, but dying, it will be impossible to maintain their marketing strategy and fight agains Adobe and Apple on the long term. They are still too pricy just because Apple and Adobe are selling it's software at bottom prices (specially Apple) and customers make their math. Hollywood producers alone won't be enough to feed such a big monster. Avid must get smaller, sell divisions, forget about some products lines and concentrate on something that makes them earn their money. But as said, Avid MC and specially Symphony on the long term will be a death software, you like or not. Same as Blackberry, once business king now just a hot potato, they changed too late, same as Avid.

My own case.

Edited for years in FCP7 (as most of us) FCPX came out... tracks where gone, everybody screaming, there was no way to work with it... full of bugs everywhere and you needed it a brand new machine. No company can stand such a change but Apple, with it's huge amount of cash can stand such a transition time without blinking, they know customers will be back again new or old ones.

OK... so I kept working with FCP7, then came PP CS6... wonderful piece of software, installed it and it works just as FCP7 but even better in many ways. But there are two problems. It is also full of bugs, slow in many ways even with CUDA, exporting renders can become a nightmare and it became now subscription software.

Got fed up from PP CS6 bugs, so tried again FCPX and you know what? I love it now, stable, fast, fresh, it just works, pay once use it everywhere, no license limits, no paying for updates, no subscription. Once you go through the new FCPX paradigm wall you understand how cool is this software. And so will be the way of many other producers, go to Avid or PP and years later back again to Apple

Give it some time and Apple will be back again... just a matter of time.

I'll be using both, PP and FCPX as most editors do for living. But it will be a very interesting fight among the three companies.


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