Document_And_Entity_Informatio
Document And Entity Information (USD $) | 6 Months Ended | ||
Jun. 30, 2013 | Aug. 29, 2014 | Jun. 30, 2014 | |
Entities [Table] | ' | ' | ' |
Entity Registrant Name | 'Avid Technology, Inc. | ' | ' |
Entity Central Index Key | '0000896841 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $287,833,000 |
Entity Common Stock, Shares Outstanding | ' | 39,159,269 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-13 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 |
Net revenues: | ' | ' | ' | ' |
Products | $99,858 | $124,991 | $198,576 | $252,697 |
Services | 41,487 | ' | 78,840 | ' |
Total net revenues | 141,345 | 165,476 | 277,416 | 324,627 |
Cost of revenues: | ' | ' | ' | ' |
Products | 38,902 | ' | 75,917 | ' |
Services | 15,392 | ' | 30,668 | ' |
Amortization of intangible assets | 501 | ' | 1,152 | ' |
Total cost of revenues | 54,795 | ' | 107,737 | ' |
Gross profit | 86,550 | ' | 169,679 | ' |
Operating expenses: | ' | ' | ' | ' |
Research and development | 23,847 | ' | 47,454 | ' |
Marketing and selling | 33,903 | ' | 67,812 | ' |
General and administrative | 16,131 | ' | 31,728 | ' |
Amortization of intangible assets | 658 | ' | 1,321 | ' |
Restructuring costs, net | 1,918 | ' | 2,191 | ' |
Total operating expenses | 76,457 | ' | 150,506 | ' |
Operating (loss) income | 10,093 | ' | 19,173 | ' |
Interest income | 122 | ' | 195 | ' |
Interest expense | -374 | ' | -709 | ' |
Other income, net | 5 | ' | 9 | ' |
Income (loss) from continuing operations before income taxes | 9,846 | ' | 18,668 | ' |
Provision for income taxes, net | 669 | ' | 1,226 | ' |
(Loss) income from continuing operations, net of tax | 9,177 | ' | 17,442 | ' |
Income from divested operations | 0 | ' | 0 | ' |
Income from discontinued operations, net of tax | 0 | ' | 0 | ' |
Net income | 9,177 | ' | 17,442 | ' |
Income (loss) per share from continuing operations, net of tax – basic | $0.24 | ' | $0.45 | ' |
Income per share from discontinued operations – basic | $0 | ' | $0 | ' |
Net income per common share – basic | $0.24 | ' | $0.45 | ' |
Income (loss) per share from continuing operations, net of tax – diluted | $0.23 | $0.02 | $0.45 | $0.30 |
Income per share from discontinued operations – diluted | $0 | $0.07 | $0 | $0.20 |
Net income per common share – diluted | $0.23 | $0.09 | $0.45 | $0.50 |
Weighted-average common shares outstanding - diluted | 39,069 | 38,798 | 39,061 | 38,759 |
Three Months Ended June 30, 2013 [Member] | ' | ' | ' | ' |
Operating expenses: | ' | ' | ' | ' |
Weighted-average common shares outstanding – basic | 39,040 | ' | ' | ' |
Six Months Ended June 30, 2013 [Member] | ' | ' | ' | ' |
Operating expenses: | ' | ' | ' | ' |
Weighted-average common shares outstanding – basic | ' | ' | 39,009 | ' |
Scenario, Actual [Member] | ' | ' | ' | ' |
Net revenues: | ' | ' | ' | ' |
Products | ' | 124,991 | ' | 252,697 |
Services | ' | 40,485 | ' | 71,930 |
Total net revenues | ' | 165,476 | ' | 324,627 |
Cost of revenues: | ' | ' | ' | ' |
Products | ' | 50,983 | ' | 96,465 |
Services | ' | 16,329 | ' | 30,740 |
Amortization of intangible assets | ' | 644 | ' | 1,294 |
Total cost of revenues | ' | 67,956 | ' | 128,499 |
Gross profit | ' | 97,520 | ' | 196,128 |
Operating expenses: | ' | ' | ' | ' |
Research and development | ' | 26,261 | ' | 52,721 |
Marketing and selling | ' | 42,282 | ' | 84,155 |
General and administrative | ' | 13,351 | ' | 27,699 |
Amortization of intangible assets | ' | 1,106 | ' | 2,717 |
Restructuring costs, net | ' | 14,437 | ' | 14,881 |
Total operating expenses | ' | 97,437 | ' | 182,173 |
Operating (loss) income | ' | 83 | ' | 13,955 |
Interest income | ' | 16 | ' | 145 |
Interest expense | ' | -407 | ' | -750 |
Other income, net | ' | 12 | ' | 32 |
Income (loss) from continuing operations before income taxes | ' | -296 | ' | 13,382 |
Provision for income taxes, net | ' | -936 | ' | 1,736 |
(Loss) income from continuing operations, net of tax | ' | 640 | ' | 11,646 |
Income from divested operations | ' | 2,773 | ' | 7,832 |
Income from discontinued operations, net of tax | ' | 2,773 | ' | 7,832 |
Net income | ' | $3,413 | ' | $19,478 |
Income (loss) per share from continuing operations, net of tax – basic | ' | $0.02 | ' | $0.30 |
Income per share from discontinued operations – basic | ' | $0.07 | ' | $0.20 |
Net income per common share – basic | ' | $0.09 | ' | $0.50 |
Weighted-average common shares outstanding – basic | ' | 38,778 | ' | 38,720 |
Income per share from discontinued operations, net of tax – basic and diluted | ' | $0.07 | ' | $0.20 |
Net income per common share - basic and diluted | ' | $0.09 | ' | $0.50 |
Weighted-average common shares outstanding - diluted | ' | 38,778 | ' | 38,759 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2012 |
Scenario, Actual [Member] | Scenario, Actual [Member] | |||
Net income | $9,177 | $17,442 | $3,413 | $19,478 |
Foreign currency translation adjustments | -1,095 | -3,706 | -3,242 | -1,094 |
Comprehensive income | $8,082 | $13,736 | $171 | $18,384 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $56,104 | $70,390 |
Accounts receivable, net of allowances of $16,775 and $20,977 at June 30, 2013 and December 31, 2012, respectively | 55,647 | 67,956 |
Inventories | 63,247 | 69,143 |
Deferred tax assets, net | 547 | 586 |
Prepaid expenses | 8,838 | 9,060 |
Other current assets | 19,025 | 19,950 |
Total current assets | 203,408 | 237,085 |
Property and equipment, net | 37,444 | 41,441 |
Intangible assets, net | 6,528 | 9,217 |
Long-term deferred tax assets, net | 2,729 | 2,825 |
Other long-term assets | 2,666 | 3,793 |
Total assets | 252,775 | 294,361 |
Current liabilities: | ' | ' |
Accounts payable | 28,703 | 35,425 |
Accrued compensation and benefits | 22,774 | 25,177 |
Accrued expenses and other current liabilities | 31,658 | 34,003 |
Income taxes payable | 6,964 | 7,969 |
Deferred tax liabilities, net | 193 | 203 |
Deferred revenues | 222,446 | 230,305 |
Total current liabilities | 312,738 | 333,082 |
Long-term deferred tax liabilities, net | 687 | 713 |
Long-term deferred revenue | 291,538 | 328,180 |
Other long-term liabilities | 15,538 | 17,978 |
Total liabilities | 620,501 | 679,953 |
Contingencies (Note 10) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock | 423 | 423 |
Additional paid-in capital | 1,040,980 | 1,039,562 |
Accumulated deficit | -1,340,238 | -1,357,679 |
Treasury stock at cost, net of reissuances | -72,830 | -75,542 |
Accumulated other comprehensive income | 3,939 | 7,644 |
Total stockholders' deficit | -367,726 | -385,592 |
Total liabilities and stockholders' deficit | $252,775 | $294,361 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Allowance for doubtful accounts | $16,775 | $20,977 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
Jun. 30, 2013 | Jun. 30, 2012 | |
Scenario, Actual [Member] | ||
Cash flows from operating activities: | ' | ' |
Net income | $17,442,000 | $19,478,000 |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 11,800,000 | 14,516,000 |
(Recovery from) provision for doubtful accounts | 30,000 | -96,000 |
Non-cash provision for restructuring | ' | 0 |
Gain on sales of assets | -125,000 | -252,000 |
Gain on disposal of fixed assets | ' | 0 |
Stock-based compensation expense | 4,185,000 | 7,405,000 |
Non-cash interest expense | 147,000 | 147,000 |
Foreign currency transaction gains | -84,000 | -1,819,000 |
Provision for deferred taxes | 9,000 | 823,000 |
Changes in operating assets and liabilities, excluding initial effects of acquisitions: | ' | ' |
Accounts receivable | 12,277,000 | 12,262,000 |
Inventories | 5,896,000 | 22,638,000 |
Prepaid expenses and other current assets | 1,225,000 | -1,242,000 |
Accounts payable | -6,661,000 | -3,531,000 |
Accrued expenses, compensation and benefits and other liabilities | -6,516,000 | 4,916,000 |
Income taxes payable | -680,000 | 2,274,000 |
Deferred revenues | -44,501,000 | -44,756,000 |
Net cash provided by (used in) operating activities | -5,556,000 | 32,763,000 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -5,290,000 | -5,023,000 |
Proceeds from sale of assets | 125,000 | 0 |
Increase in other long-term assets | -18,000 | -30,000 |
Net cash used in investing activities | -5,183,000 | -5,053,000 |
Cash flows from financing activities: | ' | ' |
Proceeds from the issuance of common stock under employee stock plans, net | 177,000 | 573,000 |
Common stock repurchases for tax withholdings for net settlement of equity awards | 232,000 | 493,000 |
Proceeds from revolving credit facilities | 0 | 1,000,000 |
Payments on revolving credit facilities | 0 | -1,000,000 |
Net cash provided by financing activities | -55,000 | 80,000 |
Effect of exchange rate changes on cash and cash equivalents | -3,492,000 | -1,262,000 |
Net increase (decrease) in cash and cash equivalents | -14,286,000 | 26,528,000 |
Cash and cash equivalents at beginning of period | 70,390,000 | 32,855,000 |
Cash and cash equivalents at end of period | 56,104,000 | 59,383,000 |
Cash paid for income taxes, net of refunds | 893,000 | 1,916,000 |
Cash paid for interest | $562,000 | ' |
FINANCIAL_INFORMATION_Notes
FINANCIAL INFORMATION (Notes) | 6 Months Ended |
Jun. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
FINANCIAL INFORMATION | ' |
FINANCIAL INFORMATION | |
The accompanying condensed consolidated financial statements include the accounts of Avid Technology, Inc. and its wholly owned subsidiaries (collectively, “Avid” or the “Company”). These financial statements are unaudited. However, in the opinion of management, the condensed consolidated financial statements reflect all normal and recurring adjustments necessary for their fair statement. Interim results are not necessarily indicative of results expected for any other interim period or a full year. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information and footnotes necessary for a complete presentation of operations, comprehensive income, financial position and cash flows of the Company in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying condensed consolidated balance sheet as of December 31, 2012 was derived from the Company’s audited consolidated financial statements but does not include all disclosures required by U.S. GAAP for annual financial statements. The Company’s audited consolidated financial statements as of and for the year ended December 31, 2012 are included in its Annual Report on Form 10-K for the year ended December 31, 2013, which includes all information and footnotes necessary for such presentation. The financial statements contained in this Form 10-Q should be read in conjunction with the audited consolidated financial statements in the Form 10-K. | |
The Company’s preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from the Company’s estimates. | |
The Company has generally funded operations in recent years through the use of existing cash balances and cash flows from operations, which have been supplemented from time to time with borrowings under credit facilities. At December 31, 2013, the Company’s principal sources of liquidity included cash and cash equivalents totaling $48.2 million and available borrowings under the Company’s credit facilities. Cash used in operating activities aggregated $9.1 million for the year ended December 31, 2013. This cash use reflected significant spending on restatement-related activities, restructuring related activities and executive management changes of $13.2 million, $13.2 million and $2.4 million, respectively. The spending associated with the restatement and restructuring activities is expected to materially abate by the end of 2014. The spending associated with the executive management changes was substantially completed in 2013. | |
The Company’s cash requirements vary depending on factors such as the growth of the business, changes in working capital, capital expenditures, acquisitions of businesses or technologies and obligations under restructuring programs. Management expects to operate the business and execute its strategic initiatives principally with funds generated from operations and the Company’s external sources of credit under the credit facilities. Management anticipates that the Company will have sufficient internal and external sources of liquidity to fund operations and anticipated working capital and other expected cash needs for at least the next twelve months as well as for the foreseeable future. | |
Subsequent Events | |
On October 1, 2010, Avid Technology, Inc. and certain of its subsidiaries (the “Borrowers”) entered into a credit agreement with Wells Fargo Capital Finance LLC (“Wells Fargo”) that established two revolving credit facilities with combined maximum availability of up to $60 million for borrowings and letter of credit guarantees (the “Credit Agreement”). On August 29, 2014, the Company entered into an amendment (the “Amendment”) to its Credit Agreement with Wells Fargo. The Amendment (i) extended the maturity of the Credit Agreement from October 1, 2014 to October 1, 2015, (ii) changed the maximum amounts available under each of the revolving credit facilities, (iii) and added certain covenants, as described below. | |
Under the Amendment, the maximum amount available for Avid Technology, Inc., (“Avid Technology”) was increased to $45 million (from $40 million) and the maximum amount available for its subsidiary Avid Technology International B.V. (“Avid Europe”) was decreased to $15 million (from $20 million). The maximum amount available under the combined credit facilities continues to be $60 million, subject to certain limitations on borrowing and other terms and conditions as provided in the Credit Agreement. | |
The Amendment further limits the Company’s ability to access borrowings under the credit facilities if (i) EBITDA (as defined in the Amendment) of $33.8 million is not achieved for the year ending December 31, 2014, or (ii) capital expenditures (as defined in the Amendment) exceed $16.0 million for the year ending December 31, 2014. | |
The Company evaluated subsequent events through the date of issuance of these financial statements and except for the subsequent events disclosed above and in Note 10, no other recognized or unrecognized subsequent events required recognition or disclosure in these financial statements. | |
Recent Accounting Pronouncements To Be Adopted | |
On May 28, 2014, the Financial Accounting Standards Board (the “FASB”) and the International Accounting Standards Board (the “IASB”) issued substantially converged final standards on revenue recognition. The FASB's Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), was issued in three parts: (a) Section A, “Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40),” (b) Section B, “Conforming Amendments to Other Topics and Subtopics in the Codification and Status Tables” and (c) Section C, “Background Information and Basis for Conclusions.” The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. | |
The new revenue recognition guidance becomes effective for the Company on January 1, 2017, and early adoption is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in the ASU. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. |
RESTATEMENT_OF_CONSOLIDATED_FI
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS (Notes) | 6 Months Ended | |||||||||||||||
Jun. 30, 2013 | ||||||||||||||||
Restatement of Consolidated Financial Statements [Text Block] | ' | |||||||||||||||
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||
Background | ||||||||||||||||
In early 2013, during the course of the Company’s review of its financial results for the fourth quarter and full year of 2012, management identified a historical practice of the Company making available, at no charge to its customers, minor feature and/or compatibility enhancements, as well as bug fixes on a when-and-if-available basis (collectively, “Software Updates”) that management has concluded meets the definition of post-contract customer support (“PCS”) under U.S. GAAP. The business practice of providing Software Updates at no charge for many of the Company’s products creates an implicit obligation and an additional undelivered element for each impacted arrangement (referred to as “Implied Maintenance Release PCS”). The Company’s identification of this additional undelivered element in substantially all of its customer arrangements has a significant impact on the historical revenue recognition policies because this element had not been previously accounted for in any period. | ||||||||||||||||
As a result of the foregoing and as explained more fully below, the Company has restated its financial statements for the three and six months ended June 30, 2012. | ||||||||||||||||
Restatement Adjustments | ||||||||||||||||
Revenue Recognition | ||||||||||||||||
The failure to identify and account for the existence of Implied Maintenance Release PCS resulted in errors in the timing of revenue recognition reported in the Company’s previously issued consolidated financial statements. Historically, the Company generally recognized revenue upon product shipment or over the period services and post-contract customer support were provided (assuming other revenue recognition conditions were met). As described more fully in the Company’s policy for “Revenue Recognition” in Note A to the Consolidated Financial Statements in Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, the existence of Implied Maintenance Release PCS in a customer arrangement requires recognition of some or all arrangement consideration, depending on GAAP applicable to the deliverables, over the period of time that the Implied Maintenance Release PCS is delivered, which is after product delivery or services are rendered and is generally after several years. The errors in the timing of revenue recognition have been corrected in the restated condensed consolidated financial statements. The significant change in the pattern of revenue recognition also had indirect impacts on revenue related accounts, such as sales return allowances and, as discussed further below, non-revenue accounts such as stock-based compensation and income taxes, which have also been restated in the restated condensed consolidated financial statements. | ||||||||||||||||
Restructuring | ||||||||||||||||
The Company also identified an overstatement of a severance costs accrual of $1.4 million due to an incorrect estimate originally recorded in the three months ended June 30, 2012. | ||||||||||||||||
Stock-Based Compensation | ||||||||||||||||
As a result of the change in the timing of revenue recognition described above, the timing and amount of stock-based compensation expense attributable to performance-based awards, where expected vesting was based on profitability, also changed. Due to the restated historical financial statements, many of the performance-based awards have vested earlier than originally estimated. | ||||||||||||||||
Other Adjustments | ||||||||||||||||
In addition to correcting the restatement adjustments described above, the Company also recorded other adjustments for other errors identified during the restatement process, including reclassifications between cost of sales and operating expenses, as well as errors in inventories and accrued liabilities. The provision for income taxes has been adjusted to reflect the changes in quarterly income before taxes. | ||||||||||||||||
Discontinued Operations | ||||||||||||||||
On July 2, 2012, the Company exited its consumer business through the sale of the assets of that business in two separate transactions. As described further in Note 7, the disposition of the consumer business qualified for presentation as discontinued operations; therefore, these financial statements have been retrospectively adjusted for all periods presented to report the consumer business as a discontinued operation. In the previously issued financial statements, the sale of the consumer business was incorrectly included in continuing operations. | ||||||||||||||||
Adjustments to Condensed Consolidated Statement of Operations | ||||||||||||||||
The following tables present the impact of the financial statement adjustments on the Company’s previously reported condensed consolidated statements of operations for the three and six months ended June 30, 2012 (in thousands except per share data): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
June 30, 2012 | ||||||||||||||||
As Previously Reported | Revenue Restatement Adjustments | Other Restatement Adjustments | Discontinued Operations | As Restated | ||||||||||||
Net revenues: | ||||||||||||||||
Products | $ | 123,026 | $ | 25,270 | $ | — | $ | (23,305 | ) | $ | 124,991 | |||||
Services | 34,405 | 6,080 | — | — | 40,485 | |||||||||||
Total net revenues | 157,431 | 31,350 | — | (23,305 | ) | 165,476 | ||||||||||
Cost of revenues: | ||||||||||||||||
Products | 69,275 | — | (262 | ) | (18,030 | ) | 50,983 | |||||||||
Services | 14,325 | — | 2,004 | — | 16,329 | |||||||||||
Amortization of intangible assets | 644 | — | — | — | 644 | |||||||||||
Total cost of revenues | 84,244 | — | 1,742 | (18,030 | ) | 67,956 | ||||||||||
Gross profit | 73,187 | 31,350 | (1,742 | ) | (5,275 | ) | 97,520 | |||||||||
Operating expenses: | ||||||||||||||||
Research and development | 26,896 | — | 142 | (777 | ) | 26,261 | ||||||||||
Marketing and selling | 43,454 | — | (16 | ) | (1,156 | ) | 42,282 | |||||||||
General and administrative | 13,905 | — | 15 | (569 | ) | 13,351 | ||||||||||
Amortization of intangible assets | 1,105 | — | 1 | — | 1,106 | |||||||||||
Restructuring costs, net | 15,841 | — | (1,404 | ) | — | 14,437 | ||||||||||
Gain on sale of assets | 9,951 | — | — | (9,951 | ) | — | ||||||||||
Total operating expenses | 111,152 | — | (1,262 | ) | (12,453 | ) | 97,437 | |||||||||
Operating (loss) income | (37,965 | ) | 31,350 | (480 | ) | 7,178 | 83 | |||||||||
Interest income | 14 | — | 2 | — | 16 | |||||||||||
Interest expense | (405 | ) | — | (2 | ) | — | (407 | ) | ||||||||
Other income | 12 | — | — | — | 12 | |||||||||||
Loss from continuing operations before income taxes | (38,344 | ) | 31,350 | (480 | ) | 7,178 | (296 | ) | ||||||||
Provision for (benefit from) income taxes, net | 903 | — | (1,839 | ) | — | (936 | ) | |||||||||
(Loss) income from continuing operations, net of tax | (39,247 | ) | 31,350 | 1,359 | 7,178 | 640 | ||||||||||
Discontinued operations: | ||||||||||||||||
Income from divested operations | — | — | — | 2,773 | 2,773 | |||||||||||
Income from discontinued operations | $ | — | $ | — | $ | — | $ | 2,773 | $ | 2,773 | ||||||
Net (loss) income | $ | (39,247 | ) | $ | 31,350 | $ | 1,359 | $ | 9,951 | $ | 3,413 | |||||
(Loss) income per common share – basic and diluted: | ||||||||||||||||
(Loss) income per share from continuing operations, net of tax – basic and diluted | $ | (1.01 | ) | $ | 0.02 | |||||||||||
Income per share from discontinued operations – basic and diluted | — | 0.07 | ||||||||||||||
Net (loss) income per common share – basic and diluted | $ | (1.01 | ) | $ | 0.09 | |||||||||||
Weighted-average common shares outstanding – basic | 38,778 | 38,778 | ||||||||||||||
Weighted-average common shares outstanding – diluted | 38,778 | 38,778 | ||||||||||||||
Six Months Ended | ||||||||||||||||
June 30, 2012 | ||||||||||||||||
As Previously Reported | Revenue Restatement Adjustments | Other Restatement Adjustments | Discontinued Operations | As Restated | ||||||||||||
Net revenues: | ||||||||||||||||
Products | $ | 242,964 | $ | 55,834 | $ | — | $ | (46,101 | ) | $ | 252,697 | |||||
Services | 66,607 | 5,323 | — | — | 71,930 | |||||||||||
Total net revenues | 309,571 | 61,157 | — | (46,101 | ) | 324,627 | ||||||||||
Cost of revenues: | ||||||||||||||||
Products | 130,483 | — | (753 | ) | (33,265 | ) | 96,465 | |||||||||
Services | 27,042 | — | 3,698 | 30,740 | ||||||||||||
Amortization of intangible assets | 1,294 | — | — | — | 1,294 | |||||||||||
Total cost of revenues | 158,819 | — | 2,945 | (33,265 | ) | 128,499 | ||||||||||
Gross profit | 150,752 | 61,157 | (2,945 | ) | (12,836 | ) | 196,128 | |||||||||
Operating expenses: | ||||||||||||||||
Research and development | 54,377 | — | (102 | ) | (1,554 | ) | 52,721 | |||||||||
Marketing and selling | 89,380 | — | (2,913 | ) | (2,312 | ) | 84,155 | |||||||||
General and administrative | 28,544 | — | 293 | (1,138 | ) | 27,699 | ||||||||||
Amortization of intangible assets | 2,717 | — | — | — | 2,717 | |||||||||||
Restructuring costs, net | 16,009 | — | (1,128 | ) | — | 14,881 | ||||||||||
Gain on sale of assets | 9,951 | — | — | (9,951 | ) | — | ||||||||||
Total operating expenses | 200,978 | — | (3,850 | ) | (14,955 | ) | 182,173 | |||||||||
Operating (loss) income | (50,226 | ) | 61,157 | 905 | 2,119 | 13,955 | ||||||||||
Interest income | 115 | — | 30 | — | 145 | |||||||||||
Interest expense | (720 | ) | — | (30 | ) | — | (750 | ) | ||||||||
Other income | 32 | — | — | — | 32 | |||||||||||
(Loss) income from continuing operations before income taxes | (50,799 | ) | 61,157 | 905 | 2,119 | 13,382 | ||||||||||
Provision for income taxes, net | 1,426 | — | 310 | — | 1,736 | |||||||||||
(Loss) income from continuing operations, net of tax | (52,225 | ) | 61,157 | 595 | 2,119 | 11,646 | ||||||||||
Discontinued operations: | ||||||||||||||||
Income from divested operations | — | — | — | 7,832 | 7,832 | |||||||||||
Income from discontinued operations | — | — | — | 7,832 | 7,832 | |||||||||||
Net (loss) income | $ | (52,225 | ) | $ | 61,157 | $ | 595 | $ | 9,951 | $ | 19,478 | |||||
(Loss) income per common share – basic and diluted: | ||||||||||||||||
(Loss) income per share from continuing operations, net of tax – basic and diluted | $ | (1.35 | ) | $ | 0.3 | |||||||||||
Income per share from discontinued operations – basic and diluted | — | 0.2 | ||||||||||||||
Net (loss) income per common share – basic and diluted | $ | (1.35 | ) | $ | 0.5 | |||||||||||
Weighted-average common shares outstanding – basic | 38,720 | 38,720 | ||||||||||||||
Weighted-average common shares outstanding – diluted | 38,720 | 38,759 | ||||||||||||||
Adjustments to Condensed Consolidated Statement of Cash Flows | ||||||||||||||||
The following table presents the impact of the financial statement adjustments on the Company’s previously reported condensed consolidated statement of cash flows for the six months ended June 30, 2012 (in thousands): | ||||||||||||||||
Six Months Ended | ||||||||||||||||
30-Jun-12 | ||||||||||||||||
As Previously Reported | Revenue Restatement Adjustments | Other Restatement Adjustments | Discontinued Operations | As Restated | ||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net (loss) income | $ | (52,225 | ) | 61,157 | $ | 595 | 9,951 | $ | 19,478 | |||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 16,184 | — | (1,668 | ) | — | 14,516 | ||||||||||
Recovery of doubtful accounts | (62 | ) | — | (34 | ) | — | (96 | ) | ||||||||
Non-cash provision for restructuring | 2,633 | — | (2,633 | ) | — | — | ||||||||||
Non-cash provision for allowances related to divestitures | 2,848 | — | (2,848 | ) | — | — | ||||||||||
Gain on sale of assets | (256 | ) | — | 4 | — | (252 | ) | |||||||||
Loss on divestiture | 9,951 | — | — | (9,951 | ) | — | ||||||||||
Stock-based compensation expense | 5,374 | — | 2,031 | — | 7,405 | |||||||||||
Non-cash interest expense | 73 | — | 74 | — | 147 | |||||||||||
Foreign currency transaction gains | (848 | ) | — | (971 | ) | — | (1,819 | ) | ||||||||
Provision for deferred taxes | 823 | — | — | — | 823 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 12,317 | (3,230 | ) | 3,175 | — | 12,262 | ||||||||||
Inventories | 20,967 | — | 1,671 | — | 22,638 | |||||||||||
Prepaid expenses and other current assets | (2,317 | ) | — | 1,075 | — | (1,242 | ) | |||||||||
Accounts payable | (3,531 | ) | — | — | — | (3,531 | ) | |||||||||
Accrued expenses, compensation and benefits and other liabilities | 5,060 | — | (144 | ) | — | 4,916 | ||||||||||
Income taxes payable | 2,170 | — | 104 | — | 2,274 | |||||||||||
Deferred revenues | 13,171 | (57,927 | ) | — | — | (44,756 | ) | |||||||||
Net cash provided by operating activities | 32,332 | — | 431 | — | 32,763 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of property and equipment | (5,237 | ) | — | 214 | — | (5,023 | ) | |||||||||
Increase in other long-term assets | (161 | ) | — | 131 | — | (30 | ) | |||||||||
Net cash used in investing activities | (5,398 | ) | — | 345 | — | (5,053 | ) | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of common stock under employee stock plans | 80 | — | 493 | — | 573 | |||||||||||
Common stock repurchases for tax withholdings for net settlement of equity awards | — | — | (493 | ) | — | (493 | ) | |||||||||
Proceeds from revolving credit facilities | 1,000 | — | — | — | 1,000 | |||||||||||
Payments on revolving credit facilities | (1,000 | ) | — | — | — | (1,000 | ) | |||||||||
Net cash provided by financing activities | 80 | — | — | — | 80 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (486 | ) | — | (776 | ) | — | (1,262 | ) | ||||||||
Net increase in cash and cash equivalents | 26,528 | — | — | — | 26,528 | |||||||||||
Cash and cash equivalents at beginning of period | 32,855 | — | — | — | 32,855 | |||||||||||
Cash and cash equivalents at end of period | $ | 59,383 | $ | — | $ | — | $ | — | $ | 59,383 | ||||||
NET_INCOME_LOSS_PER_SHARE_NET_
NET INCOME (LOSS) PER SHARE NET LOSS PER SHARE (Notes) | 6 Months Ended | |||||||||||
Jun. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Income (Loss) Per Share [Text Block] | ' | |||||||||||
NET INCOME PER SHARE | ||||||||||||
Net income per common share is presented for both basic income per share (“Basic EPS”) and diluted income per share (“Diluted EPS”). Basic EPS is based on the weighted-average number of common shares outstanding during the period. Diluted EPS is based on the weighted-average number of common shares and potential common shares outstanding during the period. | ||||||||||||
The following table sets forth (in thousands) potential common shares, on a weighted-average basis, that were considered anti-dilutive securities and excluded from the diluted earnings per share calculations for the relevant periods either because the sum of the exercise price per share and the unrecognized compensation cost per share was greater than the average market price of the Company’s common stock for the relevant period, or because they were considered contingently issuable. The contingently issuable potential common shares result from certain stock options and restricted stock units granted to the Company’s executive officers that vest based on performance conditions, market conditions, or a combination of performance or market conditions. | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Options | 5,386 | 6,854 | 5,495 | 6,249 | ||||||||
Non-vested restricted stock units | 360 | 761 | 407 | 684 | ||||||||
Anti-dilutive potential common shares | 5,746 | 7,615 | 5,902 | 6,933 | ||||||||
FOREIGN_CURRENCY_FORWARD_CONTR
FOREIGN CURRENCY FORWARD CONTRACTS (Notes) | 6 Months Ended | ||||||||
Jun. 30, 2013 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
FOREIGN CURRENCY FORWARD CONTRACTS | ' | ||||||||
FOREIGN CURRENCY CONTRACTS | |||||||||
As a hedge against the foreign exchange exposure of certain forecasted receivables, payables and cash balances of foreign subsidiaries, the Company enters into short-term foreign currency forward contracts. The changes in fair value of the foreign currency forward contracts intended to offset foreign currency exchange risk on cash flows associated with net monetary assets are recorded as gains or losses in the Company’s statement of operations in the period of change, because these contracts have not been accounted for as hedges. At June 30, 2013 and December 31, 2012, the Company had foreign currency forward contracts outstanding with aggregate notional values of $30.8 million and $23.6 million, respectively, as hedges against such forecasted foreign-currency-denominated receivables, payables and cash balances. These forward contracts typically mature within 30 days of execution. | |||||||||
The Company may also enter into short-term foreign currency spot and forward contracts as a hedge against the foreign currency exchange risk associated with certain of its net monetary assets denominated in foreign currencies. At June 30, 2013 and December 31, 2012, the Company had such foreign currency contracts with aggregate notional values of $5.1 million and $5.3 million, respectively. The fair values of these foreign currency contracts are also recorded as gains or losses in the Company’s statement of operations in the period of change. | |||||||||
The following table sets forth the balance sheet classification and fair values of the Company’s foreign currency contracts at June 30, 2013 and December 31, 2012 (in thousands): | |||||||||
Derivatives Not Designated as Hedging Instruments Under | Balance Sheet Classification | Fair Value at June 30, 2013 | Fair Value at December 31, 2012 | ||||||
Accounting Standards Codification (“ASC”) Topic 815 | |||||||||
Financial assets: | |||||||||
Foreign currency contracts | Other current assets | $54 | $157 | ||||||
Financial liabilities: | |||||||||
Foreign currency contracts | Accrued expenses and other current liabilities | $149 | $337 | ||||||
The following table sets forth the net foreign exchange losses recorded as marketing and selling expenses in the Company’s condensed consolidated statements of operations during the three and six months ended June 30, 2013 and 2012 that resulted from the Company’s foreign currency contracts and the revaluation of the related hedged items (in thousands): | |||||||||
Derivatives Not Designated as Hedging | Net (Loss) Gain Recorded in Marketing and Selling Expenses | ||||||||
Instruments under ASC Topic 815 | Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2013 | 2012 | 2013 | 2012 | ||||||
(Restated) | (Restated) | ||||||||
Foreign currency contracts and revaluation of hedged items, net | $127 | ($306) | $392 | ($431) | |||||
See Note 5 for additional information on the fair value measurements for all financial assets and liabilities, including derivative assets and derivative liabilities, that are measured at fair value on a recurring basis. |
FAIR_VALUE_MEASUREMENTS_Notes
FAIR VALUE MEASUREMENTS (Notes) | 6 Months Ended | |||||||||||||||
Jun. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||
On a recurring basis, the Company measures certain financial assets and liabilities at fair value, including foreign-currency contracts, cash equivalents, marketable securities and insurance contracts held in deferred compensation plans. At June 30, 2013 and December 31, 2012, all of the Company’s financial assets and liabilities were classified as either Level 1 or Level 2 in the fair value hierarchy. Assets valued using quoted market prices in active markets and classified as Level 1 are certain deferred compensation investments, primarily money market and mutual funds. Assets and liabilities valued based on other observable inputs and classified as Level 2 are foreign currency contracts and certain deferred compensation investments. | ||||||||||||||||
The following tables summarize the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis at June 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
June 30, | Quoted Prices in | Significant | Significant | |||||||||||||
2013 | Active Markets | Other | Unobservable | |||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets (Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||||
Financial Assets: | ||||||||||||||||
Deferred compensation assets | $ | 1,695 | $ | 1,103 | $ | 592 | $ | — | ||||||||
Foreign currency contracts | 54 | — | 54 | — | ||||||||||||
Financial Liabilities: | ||||||||||||||||
Foreign currency contracts | $ | 149 | $ | — | $ | 149 | $ | — | ||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
31-Dec-12 | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets (Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||||
Financial Assets: | ||||||||||||||||
Deferred compensation assets | $ | 1,680 | $ | 1,097 | $ | 583 | $ | — | ||||||||
Foreign currency contracts | 157 | — | 157 | — | ||||||||||||
Financial Liabilities: | ||||||||||||||||
Foreign currency contracts | $ | 337 | $ | — | $ | 337 | $ | — | ||||||||
The fair values of Level 1 deferred compensation assets are determined using a market approach based on quoted market prices of the underlying securities. The fair values of the Level 2 deferred compensation assets are determined using an income approach based on observable inputs including the prices for recently traded financial instruments with similar underlying terms as well as directly or indirectly observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. | ||||||||||||||||
The fair values of foreign currency contracts are classified as Level 2 in the fair value hierarchy and are measured at fair value on a recurring basis using an income approach based on observable inputs. The primary inputs used to fair value foreign currency contracts are published foreign currency exchange rates as of the date of valuation. See Note 4 for information on the Company’s foreign currency contracts. | ||||||||||||||||
Financial Instruments Not Recorded at Fair Value | ||||||||||||||||
The carrying amounts of the Company’s other financial assets and liabilities including cash, accounts receivable, accounts payable and accrued liabilities approximate their respective fair values because of the relatively short period of time between their origination and their expected realization. |
INVENTORIES_Notes
INVENTORIES (Notes) | 6 Months Ended | |||||||
Jun. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORIES | ' | |||||||
INVENTORIES | ||||||||
Inventories consisted of the following at June 30, 2013 and December 31, 2012 (in thousands): | ||||||||
June 30, 2013 | December 31, 2012 | |||||||
Raw materials | $ | 10,411 | $ | 11,095 | ||||
Work in process | 191 | 293 | ||||||
Finished goods | 52,645 | 57,755 | ||||||
Total | $ | 63,247 | $ | 69,143 | ||||
At June 30, 2013 and December 31, 2012, finished goods inventory included $5.8 million and $3.7 million, respectively, associated with products shipped to customers and deferred labor costs for arrangements where revenue recognition had not yet commenced. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended | |||||||
Jun. 30, 2013 | ||||||||
7. DIVESTITURE ASSETS HELD FOR SALE [Abstract] | ' | |||||||
Discontinued Operations [Text Block] | ' | |||||||
DISCONTINUED OPERATIONS | ||||||||
On July 2, 2012, the Company sold a group of consumer audio and video products and certain related intellectual property (the “Consumer Business”) with a negative carrying value of $25.0 million for total consideration of $14.8 million, of which $13.3 million was received during the three months ended September 30, 2012, recording a gain of $38.0 million net of $1.9 million of costs incurred to sell the assets. The audio assets were sold to Numark Industries, L.P. (“Numark”) for $11.8 million. Proceeds of $10.9 million were received from Numark during 2012, with the remaining proceeds held in escrow until a final release date in March 2014. The video assets were sold to Corel Corporation (“Corel”) for $3.0 million. Proceeds of $2.4 million were received from Corel in the third quarter of 2012, with the remaining proceeds held in escrow until a final release date in January 2014. There was no income tax provision related to the discontinued operations in any period presented. | ||||||||
The divestiture of these consumer product lines was intended to: | ||||||||
• | allow the Company to focus on the Broadcast and Media market and the Video and Audio Post and Professional market; | |||||||
• | reduce complexity from the Company's operations to improve operational efficiencies; and | |||||||
• | allow the Company to change its cost structure, by moving away from lower growth, lower margin sectors to drive improved financial performance. | |||||||
The following table presents the results of operations from discontinued operations for the three and six months ended June 30, 2012 (Restated) (in thousands): | ||||||||
Three Months Ended | Six Months Ended | |||||||
30-Jun-12 | 30-Jun-12 | |||||||
Net revenues | $ | 23,305 | $ | 46,101 | ||||
Cost of revenues | 18,030 | 33,265 | ||||||
Gross profit | 5,275 | 12,836 | ||||||
Operating expenses | 2,502 | 5,004 | ||||||
Income from divested operations | $ | 2,773 | $ | 7,832 | ||||
INTANGIBLE_ASSETS_Notes
INTANGIBLE ASSETS (Notes) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
INTANGIBLE ASSETS | ' | |||||||||||||||||||||||
INTANGIBLE ASSETS | ||||||||||||||||||||||||
Amortizing identifiable intangible assets related to the Company’s acquisitions or capitalized costs of internally developed or externally purchased software that form the basis for the Company’s products consisted of the following at June 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||||||||||
June 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||
Completed technologies and patents | $ | 52,501 | $ | (52,135 | ) | $ | 366 | $ | 52,720 | $ | (51,171 | ) | $ | 1,549 | ||||||||||
Customer relationships | 49,469 | (44,081 | ) | 5,388 | 49,543 | (42,828 | ) | 6,715 | ||||||||||||||||
Trade names | 5,962 | (5,962 | ) | — | 5,970 | (5,970 | ) | — | ||||||||||||||||
Capitalized software costs | 5,936 | (5,162 | ) | 774 | 5,938 | (4,985 | ) | 953 | ||||||||||||||||
Total | $ | 113,868 | $ | (107,340 | ) | $ | 6,528 | $ | 114,171 | $ | (104,954 | ) | $ | 9,217 | ||||||||||
Amortization expense related all intangible assets in the aggregate was $1.2 million and $2.0 million, respectively, for the three months ended June 30, 2013 and 2012 (Restated), and $2.7 million and $4.6 million, respectively, for the six months ended June 30, 2013 and 2012 (Restated). The Company expects amortization of intangible assets to be $1.6 million for the remainder of 2013, $1.9 million in 2014, $1.8 million in 2015 and $1.2 million in 2016. |
LONGTERM_LIABILITIES_Notes
LONG-TERM LIABILITIES (Notes) | 6 Months Ended | |||||||
Jun. 30, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
LONG-TERM LIABILITIES | ' | |||||||
OTHER LONG-TERM LIABILITIES | ||||||||
Other long-term liabilities consisted of the following at June 30, 2013 and December 31, 2012 (in thousands): | ||||||||
June 30, 2013 | December 31, 2012 | |||||||
Long-term deferred rent | $ | 8,376 | $ | 8,923 | ||||
Long-term accrued restructuring | 3,282 | 5,119 | ||||||
Long-term deferred compensation | 3,880 | 3,936 | ||||||
Total | $ | 15,538 | $ | 17,978 | ||||
CONTINGENCIES_Notes
CONTINGENCIES (Notes) | 6 Months Ended | |||||||
Jun. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
CONTINGENCIES | ' | |||||||
CONTINGENCIES | ||||||||
In March 2013 and May 2013, two purported securities class action lawsuits were filed against the Company and certain of its former executive officers seeking unspecified damages in the U.S. District Court for the District of Massachusetts. In July 2013, the two cases were consolidated and the original plaintiffs agreed to act as co-plaintiffs in the consolidated case. In September 2013, the co-plaintiffs filed a consolidated amended complaint on behalf of those who purchased the Company’s common stock between October 23, 2008 and March 20, 2013. The consolidated amended complaint, which named the Company, certain of its current and former executive officers and its former independent accounting firm as defendants, purported to state a claim for violation of federal securities laws as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. In October 2013, the Company filed a motion to dismiss the consolidated amended complaint, resulting in the dismissal of some of the claims, and the dismissal of Mr. Hernandez and one of the two plaintiffs from the case. The matter is scheduled for trial in March 2015. At this time, the Company believes that a loss related to the consolidated complaint is neither probable nor remote, and based on the information currently available regarding the claims in the consolidated complaint, the Company is unable to determine an estimate, or range of estimates, of potential losses. | ||||||||
In June 2013, a purported stockholder of the Company filed a derivative complaint against the Company as nominal defendant and certain of the Company’s current and former directors and officers. The complaints alleged various violations of state law, including breaches of fiduciary duties, waste of corporate assets and unjust enrichment. The derivative complaint sought, inter alia, unspecified monetary judgment, equitable and/or injunctive relief, restitution, disgorgement and a variety of purported corporate governance reforms. On October 30, 2013, the complaint was dismissed without prejudice. On November 26, 2013, the Company’s Board of Directors received a letter from the plaintiff in the dismissed derivative suit, demanding that the Company’s Board of Directors investigate, address and commence proceedings against certain of the Company’s directors, officers, employees and agents based on conduct identified in the dismissed complaint. In December 2013, the Company’s Board created a committee to conduct an investigation into the allegations in the demand letter. At this time, the Company believes that a loss related to the demand letter is neither probable nor remote, and based on the information currently available regarding the claims in the demand letter, the Company is unable to determine an estimate, or range of estimates, of potential losses. | ||||||||
In April and May 2013, the Company received a document preservation request and inquiry from the SEC’s Division of Enforcement and a federal grand jury subpoena from the Department of Justice requesting certain documents, including in particular documents related to the Company’s disclosures regarding its accounting review and financial transactions. The Company has produced documents responsive to such requests and has provided regular updates to the authorities on its accounting evaluation. The Company intends to continue to cooperate fully with the authorities. At this time, the Company believes that a loss related to the inquiries is neither probable nor remote, and based on the information currently available regarding these inquiries, the Company is unable to determine an estimate, or range of estimates, of potential losses. | ||||||||
At June 30, 2013, the Company was subject to various litigations claiming patent infringement by the Company. Some of these legal proceedings may include speculative claims for substantial or indeterminate amounts of damages. If any infringement is determined to exist, the Company may seek licenses or settlements. In addition, as a normal incidence of the nature of the Company’s business, various claims, charges and litigation have been asserted or commenced from time to time against the Company arising from or related to contractual, employee relations, intellectual property rights, product or service performance, or other matters. | ||||||||
The Company considers all claims on a quarterly basis and based on known facts assesses whether potential losses are considered reasonably possible, probable and estimable. Based upon this assessment, the Company then evaluates disclosure requirements and whether to accrue for such claims in its consolidated financial statements. | ||||||||
The Company records a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. | ||||||||
At June 30, 2013 and as of the date of filing of these consolidated financial statements, the Company believes that, other than as set forth in this note, no provision for liability nor disclosure is required related to any claims because: (a) there is no reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. | ||||||||
Additionally, the Company provides indemnification to certain customers for losses incurred in connection with intellectual property infringement claims brought by third parties with respect to the Company’s products. These indemnification provisions generally offer perpetual coverage for infringement claims based upon the products covered by the agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions is theoretically unlimited. To date, the Company has not incurred material costs related to these indemnification provisions; accordingly, the Company believes the estimated fair value of these indemnification provisions is immaterial. Further, certain of the Company’s arrangements with customers include clauses whereby the Company may be subject to penalties for failure to meet certain performance obligations; however, the Company has not recorded any related material penalties to date. | ||||||||
During 2010, the Company’s Canadian subsidiary, Avid Technology Canada Corporation, was assessed and paid to the Ministry of Revenue Quebec (“MRQ”) approximately CAN $1.7 million for social tax assessments on Canadian employee stock-based compensation related to the Company’s stock plans. The payment amounts were recorded in “other current assets” in the Company’s consolidated balance sheets at June 30, 2013 and December 31, 2012. During 2013, the Quebec Court of Appeals rendered a judgment against the MRQ in a similar case, and a subsequent appeal by the MRQ was dismissed by the Supreme Court of Canada. As a result, the MRQ filed a Declaration of Settlement related to the Avid case in November 2013, and this matter is considered closed. In December 2013, the MRQ refunded to the Company CAN $1.9 million for tax assessments for 2001 through 2006 and related interest. The tax assessments for 2007 through 2011 are not material and are expected to be refunded with interest during 2014. | ||||||||
The Company has letters of credit at a bank that are used as security deposits in connection with the Company’s Burlington, Massachusetts office space. In the event of default on the underlying leases, the landlords would, at June 30, 2013, be eligible to draw against the letters of credit to a maximum of $2.6 million in the aggregate. The letters of credit are subject to aggregate reductions provided the Company is not in default under the underlying leases and meets certain financial performance conditions. In no case will the letters of credit amounts be reduced to below $1.2 million in the aggregate throughout the lease periods, all of which extend to May 2020. | ||||||||
The Company also has a standby letter of credit at a bank that is used as a security deposit in connection with the Company’s Daly City, California office space lease. In the event of default on this lease, the landlord would, at June 30, 2013, be eligible to draw against this letter of credit to a maximum of $0.8 million. The letter of credit will remain in effect at this amount throughout the remaining lease period, which extends to September 2014. The Company is not renewing this lease at the end of the term and expects the letter of credit to be released at that time. | ||||||||
The Company has letters of credit totaling approximately $1.8 million that support its ongoing operations. These letters of credit have various terms and expire during 2013 and 2014. Some of the letters of credit may automatically renew based on the terms of the underlying agreements. | ||||||||
The Company provides warranties on externally sourced and internally developed hardware. For internally developed hardware and in cases where the warranty granted to customers for externally sourced hardware is greater than that provided by the manufacturer, the Company records an accrual for the related liability based on historical trends and actual material and labor costs. The following table sets forth the activity in the product warranty accrual account for the three months ended June 30, 2013 and 2012 (in thousands): | ||||||||
Six Months Ended June 30, | ||||||||
2013 | 2012 | |||||||
(Restated) | ||||||||
Accrual balance at beginning of year | $ | 4,476 | $ | 4,743 | ||||
Accruals for product warranties | 1,531 | 4,980 | ||||||
Costs of warranty claims | (2,317 | ) | (3,577 | ) | ||||
Allocation to divestitures | — | (507 | ) | |||||
Accrual balance at end of period | $ | 3,690 | $ | 5,639 | ||||
The total warranty accrual of $3.7 million is included in the caption “accrued expenses and other current liabilities” in the Company’s consolidated balance sheet at June 30, 2013. |
RESTRUCTURING_COSTS_AND_ACCRUA
RESTRUCTURING COSTS AND ACCRUALS (Notes) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2013 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
RESTRUCTURING COSTS AND ACCRUALS | ' | |||||||||||||||||||
RESTRUCTURING COSTS AND ACCRUALS | ||||||||||||||||||||
2013 Restructuring Plans | ||||||||||||||||||||
In June 2013, the Company’s leadership evaluated the marketing and selling teams and, in an effort to better align sales resources with the Company’s strategic goals and enhance its global account team approach, eliminated 31 positions. As a result, the Company recognized related restructuring costs of $1.2 million during the three months ended June 30, 2013. | ||||||||||||||||||||
2012 Restructuring Plan | ||||||||||||||||||||
In June 2012, the Company committed to a series of strategic actions (the “2012 Plan”) to focus on the Broadcast and Media market and Video and Audio Post and Professional market and to drive improved operating performance. These actions included the divestiture of certain of the Company’s consumer-focused product lines, a rationalization of the business operations and a reduction in force. Actions under the plan included the elimination of approximately 280 positions in June 2012 and the abandonment of one of the Company’s facilities in Burlington, Massachusetts and the partial abandonment of facilities in Mountain View and Daly City, California, in September 2012. During 2012, the Company recorded restructuring charges of $13.9 million related to severance costs and $8.6 million for the closure or partial closure of facilities, which included non-cash amounts of $1.4 million for fixed asset write-offs and $1.0 million for deferred rent liability write-offs. The Company substantially completed all actions under the 2012 Plan prior to December 31, 2012. | ||||||||||||||||||||
During the first six months of 2013, the Company recorded revisions totaling $0.8 million, primarily resulting from sublease assumption changes and other lease-related fees. | ||||||||||||||||||||
Prior Year Restructuring Plans | ||||||||||||||||||||
During the first six months of 2012, the Company recorded revisions totaling $0.8 million, primarily resulting from sublease | ||||||||||||||||||||
assumption changes related to the abandonment of facilities under the 2008 and 2010 Restructuring Plans. | ||||||||||||||||||||
During the first six months of 2013, the Company recorded revisions totaling $0.2 million, primarily resulting from sublease | ||||||||||||||||||||
assumption changes related to the abandonment of facilities under the 2008 and 2010 Restructuring Plans. | ||||||||||||||||||||
Restructuring Summary | ||||||||||||||||||||
The following table sets forth the activity in the restructuring accruals for the six months ended June 30, 2013 (in thousands): | ||||||||||||||||||||
Non-Acquisition-Related | Acquisition-Related | |||||||||||||||||||
Restructuring | Restructuring | |||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||
Employee- | Facilities/Other- | Employee- | Facilities- | Total | ||||||||||||||||
Related | Related | Related | Related | |||||||||||||||||
Accrual balance at December 31, 2012 | $ | 4,299 | $ | 10,839 | $ | — | $ | 595 | $ | 15,733 | ||||||||||
New restructuring charges – operating expenses | 1,233 | — | — | — | 1,233 | |||||||||||||||
Revisions of estimated liabilities | 83 | 875 | — | — | 958 | |||||||||||||||
Accretion | — | 257 | 16 | 273 | ||||||||||||||||
Cash payments | (3,744 | ) | (3,446 | ) | — | (225 | ) | (7,415 | ) | |||||||||||
Foreign exchange impact on ending balance | (71 | ) | (73 | ) | — | — | (144 | ) | ||||||||||||
Accrual balance at June 30, 2013 | $ | 1,800 | $ | 8,452 | $ | — | $ | 386 | $ | 10,638 | ||||||||||
The employee-related accruals at June 30, 2013 represent severance and outplacement costs to former employees that will be paid out within the next twelve months and are, therefore, included in the caption “accrued expenses and other current liabilities” in the Company’s consolidated balance sheet at June 30, 2013. | ||||||||||||||||||||
The facilities-related accruals at June 30, 2013 represent contractual lease payments, net of subleases, on space vacated as part of the Company’s restructuring actions. The leases, and payments against the amounts accrued, extend through 2021 unless the Company is able to negotiate earlier terminations. Of the total facilities-related accruals, $5.5 million is included in the caption “accrued expenses and other current liabilities” and $3.3 million is included in the caption “other long-term liabilities” in the Company’s consolidated balance sheet at June 30, 2013. |
SEGMENT_INFORMATION_Notes
SEGMENT INFORMATION (Notes) | 6 Months Ended | |||||||||||||||
Jun. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||
The Company’s evaluation of the discrete financial information that is regularly reviewed by the chief operating decision makers, which include the Company’s chief executive officer and chief financial officer, has determined that the Company has one reportable segment. The following table is a summary of the Company’s revenues from continuing operations by type for the three and six months ended June 30, 2013 and 2012 (Restated) (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Restated) | (Restated) | |||||||||||||||
Video products and solutions net revenues | $ | 58,062 | $ | 72,969 | $ | 116,886 | $ | 141,562 | ||||||||
Audio products and solutions net revenues | 41,796 | 52,022 | 81,690 | 111,135 | ||||||||||||
Products and solutions net revenues | 99,858 | 124,991 | 198,576 | 252,697 | ||||||||||||
Services net revenues | 41,487 | 40,485 | 78,840 | 71,930 | ||||||||||||
Total net revenues | $ | 141,345 | $ | 165,476 | $ | 277,416 | $ | 324,627 | ||||||||
The following table sets forth the Company’s revenues from continuing operations by geographic region for the three and six months ended June 30, 2013 and 2012 (Restated) (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Restated) | (Restated) | |||||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 56,110 | $ | 63,271 | $ | 106,925 | $ | 126,405 | ||||||||
Other Americas | 11,733 | 11,743 | 24,836 | 25,099 | ||||||||||||
Europe, Middle East and Africa | 52,230 | 65,657 | 103,501 | 124,382 | ||||||||||||
Asia-Pacific | 21,272 | 24,805 | 42,154 | 48,741 | ||||||||||||
Total net revenues | $ | 141,345 | $ | 165,476 | $ | 277,416 | $ | 324,627 | ||||||||
FINANCIAL_INFORMATION_Recent_A
FINANCIAL INFORMATION Recent Accounting Pronouncements to be Adopted (Policies) | 6 Months Ended |
Jun. 30, 2013 | |
Subsequent Events, Policy [Policy Text Block] | ' |
Subsequent Events | |
On October 1, 2010, Avid Technology, Inc. and certain of its subsidiaries (the “Borrowers”) entered into a credit agreement with Wells Fargo Capital Finance LLC (“Wells Fargo”) that established two revolving credit facilities with combined maximum availability of up to $60 million for borrowings and letter of credit guarantees (the “Credit Agreement”). On August 29, 2014, the Company entered into an amendment (the “Amendment”) to its Credit Agreement with Wells Fargo. The Amendment (i) extended the maturity of the Credit Agreement from October 1, 2014 to October 1, 2015, (ii) changed the maximum amounts available under each of the revolving credit facilities, (iii) and added certain covenants, as described below. | |
Under the Amendment, the maximum amount available for Avid Technology, Inc., (“Avid Technology”) was increased to $45 million (from $40 million) and the maximum amount available for its subsidiary Avid Technology International B.V. (“Avid Europe”) was decreased to $15 million (from $20 million). The maximum amount available under the combined credit facilities continues to be $60 million, subject to certain limitations on borrowing and other terms and conditions as provided in the Credit Agreement. | |
The Amendment further limits the Company’s ability to access borrowings under the credit facilities if (i) EBITDA (as defined in the Amendment) of $33.8 million is not achieved for the year ending December 31, 2014, or (ii) capital expenditures (as defined in the Amendment) exceed $16.0 million for the year ending December 31, 2014. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent Accounting Pronouncements To Be Adopted | |
On May 28, 2014, the Financial Accounting Standards Board (the “FASB”) and the International Accounting Standards Board (the “IASB”) issued substantially converged final standards on revenue recognition. The FASB's Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), was issued in three parts: (a) Section A, “Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40),” (b) Section B, “Conforming Amendments to Other Topics and Subtopics in the Codification and Status Tables” and (c) Section C, “Background Information and Basis for Conclusions.” The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. | |
The new revenue recognition guidance becomes effective for the Company on January 1, 2017, and early adoption is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in the ASU. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. |
RESTRUCTURING_COSTS_AND_ACCRUA1
RESTRUCTURING COSTS AND ACCRUALS (Policies) | 6 Months Ended |
Jun. 30, 2013 | |
Restructuring and Related Activities [Abstract] | ' |
Accounting for Restructuring Plans [Policy Text Block] | ' |
FINANCIAL_INFORMATION_Revised_
FINANCIAL INFORMATION Revised Consolidated Statements of Operations (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2012 | ||||||||||||||||
Revised Consolidated Statements of Operations [Table Text Block] | ' | |||||||||||||||
The following tables present the impact of the financial statement adjustments on the Company’s previously reported condensed consolidated statements of operations for the three and six months ended June 30, 2012 (in thousands except per share data): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
June 30, 2012 | ||||||||||||||||
As Previously Reported | Revenue Restatement Adjustments | Other Restatement Adjustments | Discontinued Operations | As Restated | ||||||||||||
Net revenues: | ||||||||||||||||
Products | $ | 123,026 | $ | 25,270 | $ | — | $ | (23,305 | ) | $ | 124,991 | |||||
Services | 34,405 | 6,080 | — | — | 40,485 | |||||||||||
Total net revenues | 157,431 | 31,350 | — | (23,305 | ) | 165,476 | ||||||||||
Cost of revenues: | ||||||||||||||||
Products | 69,275 | — | (262 | ) | (18,030 | ) | 50,983 | |||||||||
Services | 14,325 | — | 2,004 | — | 16,329 | |||||||||||
Amortization of intangible assets | 644 | — | — | — | 644 | |||||||||||
Total cost of revenues | 84,244 | — | 1,742 | (18,030 | ) | 67,956 | ||||||||||
Gross profit | 73,187 | 31,350 | (1,742 | ) | (5,275 | ) | 97,520 | |||||||||
Operating expenses: | ||||||||||||||||
Research and development | 26,896 | — | 142 | (777 | ) | 26,261 | ||||||||||
Marketing and selling | 43,454 | — | (16 | ) | (1,156 | ) | 42,282 | |||||||||
General and administrative | 13,905 | — | 15 | (569 | ) | 13,351 | ||||||||||
Amortization of intangible assets | 1,105 | — | 1 | — | 1,106 | |||||||||||
Restructuring costs, net | 15,841 | — | (1,404 | ) | — | 14,437 | ||||||||||
Gain on sale of assets | 9,951 | — | — | (9,951 | ) | — | ||||||||||
Total operating expenses | 111,152 | — | (1,262 | ) | (12,453 | ) | 97,437 | |||||||||
Operating (loss) income | (37,965 | ) | 31,350 | (480 | ) | 7,178 | 83 | |||||||||
Interest income | 14 | — | 2 | — | 16 | |||||||||||
Interest expense | (405 | ) | — | (2 | ) | — | (407 | ) | ||||||||
Other income | 12 | — | — | — | 12 | |||||||||||
Loss from continuing operations before income taxes | (38,344 | ) | 31,350 | (480 | ) | 7,178 | (296 | ) | ||||||||
Provision for (benefit from) income taxes, net | 903 | — | (1,839 | ) | — | (936 | ) | |||||||||
(Loss) income from continuing operations, net of tax | (39,247 | ) | 31,350 | 1,359 | 7,178 | 640 | ||||||||||
Discontinued operations: | ||||||||||||||||
Income from divested operations | — | — | — | 2,773 | 2,773 | |||||||||||
Income from discontinued operations | $ | — | $ | — | $ | — | $ | 2,773 | $ | 2,773 | ||||||
Net (loss) income | $ | (39,247 | ) | $ | 31,350 | $ | 1,359 | $ | 9,951 | $ | 3,413 | |||||
(Loss) income per common share – basic and diluted: | ||||||||||||||||
(Loss) income per share from continuing operations, net of tax – basic and diluted | $ | (1.01 | ) | $ | 0.02 | |||||||||||
Income per share from discontinued operations – basic and diluted | — | 0.07 | ||||||||||||||
Net (loss) income per common share – basic and diluted | $ | (1.01 | ) | $ | 0.09 | |||||||||||
Weighted-average common shares outstanding – basic | 38,778 | 38,778 | ||||||||||||||
Weighted-average common shares outstanding – diluted | 38,778 | 38,778 | ||||||||||||||
Six Months Ended | ||||||||||||||||
June 30, 2012 | ||||||||||||||||
As Previously Reported | Revenue Restatement Adjustments | Other Restatement Adjustments | Discontinued Operations | As Restated | ||||||||||||
Net revenues: | ||||||||||||||||
Products | $ | 242,964 | $ | 55,834 | $ | — | $ | (46,101 | ) | $ | 252,697 | |||||
Services | 66,607 | 5,323 | — | — | 71,930 | |||||||||||
Total net revenues | 309,571 | 61,157 | — | (46,101 | ) | 324,627 | ||||||||||
Cost of revenues: | ||||||||||||||||
Products | 130,483 | — | (753 | ) | (33,265 | ) | 96,465 | |||||||||
Services | 27,042 | — | 3,698 | 30,740 | ||||||||||||
Amortization of intangible assets | 1,294 | — | — | — | 1,294 | |||||||||||
Total cost of revenues | 158,819 | — | 2,945 | (33,265 | ) | 128,499 | ||||||||||
Gross profit | 150,752 | 61,157 | (2,945 | ) | (12,836 | ) | 196,128 | |||||||||
Operating expenses: | ||||||||||||||||
Research and development | 54,377 | — | (102 | ) | (1,554 | ) | 52,721 | |||||||||
Marketing and selling | 89,380 | — | (2,913 | ) | (2,312 | ) | 84,155 | |||||||||
General and administrative | 28,544 | — | 293 | (1,138 | ) | 27,699 | ||||||||||
Amortization of intangible assets | 2,717 | — | — | — | 2,717 | |||||||||||
Restructuring costs, net | 16,009 | — | (1,128 | ) | — | 14,881 | ||||||||||
Gain on sale of assets | 9,951 | — | — | (9,951 | ) | — | ||||||||||
Total operating expenses | 200,978 | — | (3,850 | ) | (14,955 | ) | 182,173 | |||||||||
Operating (loss) income | (50,226 | ) | 61,157 | 905 | 2,119 | 13,955 | ||||||||||
Interest income | 115 | — | 30 | — | 145 | |||||||||||
Interest expense | (720 | ) | — | (30 | ) | — | (750 | ) | ||||||||
Other income | 32 | — | — | — | 32 | |||||||||||
(Loss) income from continuing operations before income taxes | (50,799 | ) | 61,157 | 905 | 2,119 | 13,382 | ||||||||||
Provision for income taxes, net | 1,426 | — | 310 | — | 1,736 | |||||||||||
(Loss) income from continuing operations, net of tax | (52,225 | ) | 61,157 | 595 | 2,119 | 11,646 | ||||||||||
Discontinued operations: | ||||||||||||||||
Income from divested operations | — | — | — | 7,832 | 7,832 | |||||||||||
Income from discontinued operations | — | — | — | 7,832 | 7,832 | |||||||||||
Net (loss) income | $ | (52,225 | ) | $ | 61,157 | $ | 595 | $ | 9,951 | $ | 19,478 | |||||
(Loss) income per common share – basic and diluted: | ||||||||||||||||
(Loss) income per share from continuing operations, net of tax – basic and diluted | $ | (1.35 | ) | $ | 0.3 | |||||||||||
Income per share from discontinued operations – basic and diluted | — | 0.2 | ||||||||||||||
Net (loss) income per common share – basic and diluted | $ | (1.35 | ) | $ | 0.5 | |||||||||||
Weighted-average common shares outstanding – basic | 38,720 | 38,720 | ||||||||||||||
Weighted-average common shares outstanding – diluted | 38,720 | 38,759 | ||||||||||||||
RESTATEMENT_OF_CONSOLIDATED_FI1
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS Revised Consolidated Statements of Cash Flows (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2012 | ||||||||||||||||
Revised Consolidated Statements Of Cash Flows [Table Text Block] | ' | |||||||||||||||
The following table presents the impact of the financial statement adjustments on the Company’s previously reported condensed consolidated statement of cash flows for the six months ended June 30, 2012 (in thousands): | ||||||||||||||||
Six Months Ended | ||||||||||||||||
30-Jun-12 | ||||||||||||||||
As Previously Reported | Revenue Restatement Adjustments | Other Restatement Adjustments | Discontinued Operations | As Restated | ||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net (loss) income | $ | (52,225 | ) | 61,157 | $ | 595 | 9,951 | $ | 19,478 | |||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 16,184 | — | (1,668 | ) | — | 14,516 | ||||||||||
Recovery of doubtful accounts | (62 | ) | — | (34 | ) | — | (96 | ) | ||||||||
Non-cash provision for restructuring | 2,633 | — | (2,633 | ) | — | — | ||||||||||
Non-cash provision for allowances related to divestitures | 2,848 | — | (2,848 | ) | — | — | ||||||||||
Gain on sale of assets | (256 | ) | — | 4 | — | (252 | ) | |||||||||
Loss on divestiture | 9,951 | — | — | (9,951 | ) | — | ||||||||||
Stock-based compensation expense | 5,374 | — | 2,031 | — | 7,405 | |||||||||||
Non-cash interest expense | 73 | — | 74 | — | 147 | |||||||||||
Foreign currency transaction gains | (848 | ) | — | (971 | ) | — | (1,819 | ) | ||||||||
Provision for deferred taxes | 823 | — | — | — | 823 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 12,317 | (3,230 | ) | 3,175 | — | 12,262 | ||||||||||
Inventories | 20,967 | — | 1,671 | — | 22,638 | |||||||||||
Prepaid expenses and other current assets | (2,317 | ) | — | 1,075 | — | (1,242 | ) | |||||||||
Accounts payable | (3,531 | ) | — | — | — | (3,531 | ) | |||||||||
Accrued expenses, compensation and benefits and other liabilities | 5,060 | — | (144 | ) | — | 4,916 | ||||||||||
Income taxes payable | 2,170 | — | 104 | — | 2,274 | |||||||||||
Deferred revenues | 13,171 | (57,927 | ) | — | — | (44,756 | ) | |||||||||
Net cash provided by operating activities | 32,332 | — | 431 | — | 32,763 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of property and equipment | (5,237 | ) | — | 214 | — | (5,023 | ) | |||||||||
Increase in other long-term assets | (161 | ) | — | 131 | — | (30 | ) | |||||||||
Net cash used in investing activities | (5,398 | ) | — | 345 | — | (5,053 | ) | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of common stock under employee stock plans | 80 | — | 493 | — | 573 | |||||||||||
Common stock repurchases for tax withholdings for net settlement of equity awards | — | — | (493 | ) | — | (493 | ) | |||||||||
Proceeds from revolving credit facilities | 1,000 | — | — | — | 1,000 | |||||||||||
Payments on revolving credit facilities | (1,000 | ) | — | — | — | (1,000 | ) | |||||||||
Net cash provided by financing activities | 80 | — | — | — | 80 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (486 | ) | — | (776 | ) | — | (1,262 | ) | ||||||||
Net increase in cash and cash equivalents | 26,528 | — | — | — | 26,528 | |||||||||||
Cash and cash equivalents at beginning of period | 32,855 | — | — | — | 32,855 | |||||||||||
Cash and cash equivalents at end of period | $ | 59,383 | $ | — | $ | — | $ | — | $ | 59,383 | ||||||
RESTATEMENT_OF_CONSOLIDATED_FI2
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS Revised Consolidated Statements of Operations (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2012 | ||||||||||||||||
Revised Consolidated Statements of Operations [Table Text Block] | ' | |||||||||||||||
The following tables present the impact of the financial statement adjustments on the Company’s previously reported condensed consolidated statements of operations for the three and six months ended June 30, 2012 (in thousands except per share data): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
June 30, 2012 | ||||||||||||||||
As Previously Reported | Revenue Restatement Adjustments | Other Restatement Adjustments | Discontinued Operations | As Restated | ||||||||||||
Net revenues: | ||||||||||||||||
Products | $ | 123,026 | $ | 25,270 | $ | — | $ | (23,305 | ) | $ | 124,991 | |||||
Services | 34,405 | 6,080 | — | — | 40,485 | |||||||||||
Total net revenues | 157,431 | 31,350 | — | (23,305 | ) | 165,476 | ||||||||||
Cost of revenues: | ||||||||||||||||
Products | 69,275 | — | (262 | ) | (18,030 | ) | 50,983 | |||||||||
Services | 14,325 | — | 2,004 | — | 16,329 | |||||||||||
Amortization of intangible assets | 644 | — | — | — | 644 | |||||||||||
Total cost of revenues | 84,244 | — | 1,742 | (18,030 | ) | 67,956 | ||||||||||
Gross profit | 73,187 | 31,350 | (1,742 | ) | (5,275 | ) | 97,520 | |||||||||
Operating expenses: | ||||||||||||||||
Research and development | 26,896 | — | 142 | (777 | ) | 26,261 | ||||||||||
Marketing and selling | 43,454 | — | (16 | ) | (1,156 | ) | 42,282 | |||||||||
General and administrative | 13,905 | — | 15 | (569 | ) | 13,351 | ||||||||||
Amortization of intangible assets | 1,105 | — | 1 | — | 1,106 | |||||||||||
Restructuring costs, net | 15,841 | — | (1,404 | ) | — | 14,437 | ||||||||||
Gain on sale of assets | 9,951 | — | — | (9,951 | ) | — | ||||||||||
Total operating expenses | 111,152 | — | (1,262 | ) | (12,453 | ) | 97,437 | |||||||||
Operating (loss) income | (37,965 | ) | 31,350 | (480 | ) | 7,178 | 83 | |||||||||
Interest income | 14 | — | 2 | — | 16 | |||||||||||
Interest expense | (405 | ) | — | (2 | ) | — | (407 | ) | ||||||||
Other income | 12 | — | — | — | 12 | |||||||||||
Loss from continuing operations before income taxes | (38,344 | ) | 31,350 | (480 | ) | 7,178 | (296 | ) | ||||||||
Provision for (benefit from) income taxes, net | 903 | — | (1,839 | ) | — | (936 | ) | |||||||||
(Loss) income from continuing operations, net of tax | (39,247 | ) | 31,350 | 1,359 | 7,178 | 640 | ||||||||||
Discontinued operations: | ||||||||||||||||
Income from divested operations | — | — | — | 2,773 | 2,773 | |||||||||||
Income from discontinued operations | $ | — | $ | — | $ | — | $ | 2,773 | $ | 2,773 | ||||||
Net (loss) income | $ | (39,247 | ) | $ | 31,350 | $ | 1,359 | $ | 9,951 | $ | 3,413 | |||||
(Loss) income per common share – basic and diluted: | ||||||||||||||||
(Loss) income per share from continuing operations, net of tax – basic and diluted | $ | (1.01 | ) | $ | 0.02 | |||||||||||
Income per share from discontinued operations – basic and diluted | — | 0.07 | ||||||||||||||
Net (loss) income per common share – basic and diluted | $ | (1.01 | ) | $ | 0.09 | |||||||||||
Weighted-average common shares outstanding – basic | 38,778 | 38,778 | ||||||||||||||
Weighted-average common shares outstanding – diluted | 38,778 | 38,778 | ||||||||||||||
Six Months Ended | ||||||||||||||||
June 30, 2012 | ||||||||||||||||
As Previously Reported | Revenue Restatement Adjustments | Other Restatement Adjustments | Discontinued Operations | As Restated | ||||||||||||
Net revenues: | ||||||||||||||||
Products | $ | 242,964 | $ | 55,834 | $ | — | $ | (46,101 | ) | $ | 252,697 | |||||
Services | 66,607 | 5,323 | — | — | 71,930 | |||||||||||
Total net revenues | 309,571 | 61,157 | — | (46,101 | ) | 324,627 | ||||||||||
Cost of revenues: | ||||||||||||||||
Products | 130,483 | — | (753 | ) | (33,265 | ) | 96,465 | |||||||||
Services | 27,042 | — | 3,698 | 30,740 | ||||||||||||
Amortization of intangible assets | 1,294 | — | — | — | 1,294 | |||||||||||
Total cost of revenues | 158,819 | — | 2,945 | (33,265 | ) | 128,499 | ||||||||||
Gross profit | 150,752 | 61,157 | (2,945 | ) | (12,836 | ) | 196,128 | |||||||||
Operating expenses: | ||||||||||||||||
Research and development | 54,377 | — | (102 | ) | (1,554 | ) | 52,721 | |||||||||
Marketing and selling | 89,380 | — | (2,913 | ) | (2,312 | ) | 84,155 | |||||||||
General and administrative | 28,544 | — | 293 | (1,138 | ) | 27,699 | ||||||||||
Amortization of intangible assets | 2,717 | — | — | — | 2,717 | |||||||||||
Restructuring costs, net | 16,009 | — | (1,128 | ) | — | 14,881 | ||||||||||
Gain on sale of assets | 9,951 | — | — | (9,951 | ) | — | ||||||||||
Total operating expenses | 200,978 | — | (3,850 | ) | (14,955 | ) | 182,173 | |||||||||
Operating (loss) income | (50,226 | ) | 61,157 | 905 | 2,119 | 13,955 | ||||||||||
Interest income | 115 | — | 30 | — | 145 | |||||||||||
Interest expense | (720 | ) | — | (30 | ) | — | (750 | ) | ||||||||
Other income | 32 | — | — | — | 32 | |||||||||||
(Loss) income from continuing operations before income taxes | (50,799 | ) | 61,157 | 905 | 2,119 | 13,382 | ||||||||||
Provision for income taxes, net | 1,426 | — | 310 | — | 1,736 | |||||||||||
(Loss) income from continuing operations, net of tax | (52,225 | ) | 61,157 | 595 | 2,119 | 11,646 | ||||||||||
Discontinued operations: | ||||||||||||||||
Income from divested operations | — | — | — | 7,832 | 7,832 | |||||||||||
Income from discontinued operations | — | — | — | 7,832 | 7,832 | |||||||||||
Net (loss) income | $ | (52,225 | ) | $ | 61,157 | $ | 595 | $ | 9,951 | $ | 19,478 | |||||
(Loss) income per common share – basic and diluted: | ||||||||||||||||
(Loss) income per share from continuing operations, net of tax – basic and diluted | $ | (1.35 | ) | $ | 0.3 | |||||||||||
Income per share from discontinued operations – basic and diluted | — | 0.2 | ||||||||||||||
Net (loss) income per common share – basic and diluted | $ | (1.35 | ) | $ | 0.5 | |||||||||||
Weighted-average common shares outstanding – basic | 38,720 | 38,720 | ||||||||||||||
Weighted-average common shares outstanding – diluted | 38,720 | 38,759 | ||||||||||||||
NET_INCOME_LOSS_PER_SHARE_NET_1
NET INCOME (LOSS) PER SHARE NET LOSS PER SHARE (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of Antidilutive Securities Excluded From Computation of Net Loss Per Share | ' | |||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Options | 5,386 | 6,854 | 5,495 | 6,249 | ||||||||
Non-vested restricted stock units | 360 | 761 | 407 | 684 | ||||||||
Anti-dilutive potential common shares | 5,746 | 7,615 | 5,902 | 6,933 | ||||||||
FOREIGN_CURRENCY_FORWARD_CONTR1
FOREIGN CURRENCY FORWARD CONTRACTS (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2013 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Balance sheet locations, fair values and net gains and losses of foreign currency forward contracts | ' | ||||||||
June 30, 2013 and December 31, 2012 (in thousands): | |||||||||
Derivatives Not Designated as Hedging Instruments Under | Balance Sheet Classification | Fair Value at June 30, 2013 | Fair Value at December 31, 2012 | ||||||
Accounting Standards Codification (“ASC”) Topic 815 | |||||||||
Financial assets: | |||||||||
Foreign currency contracts | Other current assets | $54 | $157 | ||||||
Financial liabilities: | |||||||||
Foreign currency contracts | Accrued expenses and other current liabilities | $149 | $337 | ||||||
The following table sets forth the net foreign exchange losses recorded as marketing and selling expenses in the Company’s condensed consolidated statements of operations during the three and six months ended June 30, 2013 and 2012 that resulted from the Company’s foreign currency contracts and the revaluation of the related hedged items (in thousands): | |||||||||
Derivatives Not Designated as Hedging | Net (Loss) Gain Recorded in Marketing and Selling Expenses | ||||||||
Instruments under ASC Topic 815 | Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2013 | 2012 | 2013 | 2012 | ||||||
(Restated) | (Restated) | ||||||||
Foreign currency contracts and revaluation of hedged items, net | $127 | ($306) | $392 | ($431) | |||||
See Note 5 for additional information on the fair value measurements for all financial assets and liabilities, including derivative assets and derivative liabilities, that are measured at fair value on a recurring basis. |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||
The following tables summarize the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis at June 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
June 30, | Quoted Prices in | Significant | Significant | |||||||||||||
2013 | Active Markets | Other | Unobservable | |||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets (Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||||
Financial Assets: | ||||||||||||||||
Deferred compensation assets | $ | 1,695 | $ | 1,103 | $ | 592 | $ | — | ||||||||
Foreign currency contracts | 54 | — | 54 | — | ||||||||||||
Financial Liabilities: | ||||||||||||||||
Foreign currency contracts | $ | 149 | $ | — | $ | 149 | $ | — | ||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
31-Dec-12 | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets (Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||||
Financial Assets: | ||||||||||||||||
Deferred compensation assets | $ | 1,680 | $ | 1,097 | $ | 583 | $ | — | ||||||||
Foreign currency contracts | 157 | — | 157 | — | ||||||||||||
Financial Liabilities: | ||||||||||||||||
Foreign currency contracts | $ | 337 | $ | — | $ | 337 | $ | — | ||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 6 Months Ended | |||||||
Jun. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consisted of the following at June 30, 2013 and December 31, 2012 (in thousands): | ||||||||
June 30, 2013 | December 31, 2012 | |||||||
Raw materials | $ | 10,411 | $ | 11,095 | ||||
Work in process | 191 | 293 | ||||||
Finished goods | 52,645 | 57,755 | ||||||
Total | $ | 63,247 | $ | 69,143 | ||||
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended | |||||||
Jun. 30, 2013 | ||||||||
Income from Discontinued Operations [Table Text Block] | ' | |||||||
The following table presents the results of operations from discontinued operations for the three and six months ended June 30, 2012 (Restated) (in thousands): | ||||||||
Three Months Ended | Six Months Ended | |||||||
30-Jun-12 | 30-Jun-12 | |||||||
Net revenues | $ | 23,305 | $ | 46,101 | ||||
Cost of revenues | 18,030 | 33,265 | ||||||
Gross profit | 5,275 | 12,836 | ||||||
Operating expenses | 2,502 | 5,004 | ||||||
Income from divested operations | $ | 2,773 | $ | 7,832 | ||||
Divestiture Assets Held for Sale [Table Text Block] | ' | |||||||
GOODWILL_AND_IDENTIFIABLE_INTA
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Amortization of identifiable intangible assets | ' | |||||||||||||||||||||||
Amortizing identifiable intangible assets related to the Company’s acquisitions or capitalized costs of internally developed or externally purchased software that form the basis for the Company’s products consisted of the following at June 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||||||||||
June 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||
Completed technologies and patents | $ | 52,501 | $ | (52,135 | ) | $ | 366 | $ | 52,720 | $ | (51,171 | ) | $ | 1,549 | ||||||||||
Customer relationships | 49,469 | (44,081 | ) | 5,388 | 49,543 | (42,828 | ) | 6,715 | ||||||||||||||||
Trade names | 5,962 | (5,962 | ) | — | 5,970 | (5,970 | ) | — | ||||||||||||||||
Capitalized software costs | 5,936 | (5,162 | ) | 774 | 5,938 | (4,985 | ) | 953 | ||||||||||||||||
Total | $ | 113,868 | $ | (107,340 | ) | $ | 6,528 | $ | 114,171 | $ | (104,954 | ) | $ | 9,217 | ||||||||||
LONGTERM_LIABILITIES_Tables
LONG-TERM LIABILITIES (Tables) | 6 Months Ended | |||||||
Jun. 30, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Long-term liabilities | ' | |||||||
Other long-term liabilities consisted of the following at June 30, 2013 and December 31, 2012 (in thousands): | ||||||||
June 30, 2013 | December 31, 2012 | |||||||
Long-term deferred rent | $ | 8,376 | $ | 8,923 | ||||
Long-term accrued restructuring | 3,282 | 5,119 | ||||||
Long-term deferred compensation | 3,880 | 3,936 | ||||||
Total | $ | 15,538 | $ | 17,978 | ||||
CONTINGENCIES_Tables
CONTINGENCIES (Tables) | 6 Months Ended | |||||||
Jun. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Product warranty accrual activity | ' | |||||||
The following table sets forth the activity in the product warranty accrual account for the three months ended June 30, 2013 and 2012 (in thousands): | ||||||||
Six Months Ended June 30, | ||||||||
2013 | 2012 | |||||||
(Restated) | ||||||||
Accrual balance at beginning of year | $ | 4,476 | $ | 4,743 | ||||
Accruals for product warranties | 1,531 | 4,980 | ||||||
Costs of warranty claims | (2,317 | ) | (3,577 | ) | ||||
Allocation to divestitures | — | (507 | ) | |||||
Accrual balance at end of period | $ | 3,690 | $ | 5,639 | ||||
The total warranty accrual of $3.7 million is included in the caption “accrued expenses and other current liabilities” in the Company’s consolidated balance sheet at June 30, 2013. |
RESTRUCTURING_COSTS_AND_ACCRUA2
RESTRUCTURING COSTS AND ACCRUALS (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2013 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||
Schedule of Restructuring and Related Costs | ' | |||||||||||||||||||
The following table sets forth the activity in the restructuring accruals for the six months ended June 30, 2013 (in thousands): | ||||||||||||||||||||
Non-Acquisition-Related | Acquisition-Related | |||||||||||||||||||
Restructuring | Restructuring | |||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||
Employee- | Facilities/Other- | Employee- | Facilities- | Total | ||||||||||||||||
Related | Related | Related | Related | |||||||||||||||||
Accrual balance at December 31, 2012 | $ | 4,299 | $ | 10,839 | $ | — | $ | 595 | $ | 15,733 | ||||||||||
New restructuring charges – operating expenses | 1,233 | — | — | — | 1,233 | |||||||||||||||
Revisions of estimated liabilities | 83 | 875 | — | — | 958 | |||||||||||||||
Accretion | — | 257 | 16 | 273 | ||||||||||||||||
Cash payments | (3,744 | ) | (3,446 | ) | — | (225 | ) | (7,415 | ) | |||||||||||
Foreign exchange impact on ending balance | (71 | ) | (73 | ) | — | — | (144 | ) | ||||||||||||
Accrual balance at June 30, 2013 | $ | 1,800 | $ | 8,452 | $ | — | $ | 386 | $ | 10,638 | ||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | ' | |||||||||||||||
The following table is a summary of the Company’s revenues from continuing operations by type for the three and six months ended June 30, 2013 and 2012 (Restated) (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Restated) | (Restated) | |||||||||||||||
Video products and solutions net revenues | $ | 58,062 | $ | 72,969 | $ | 116,886 | $ | 141,562 | ||||||||
Audio products and solutions net revenues | 41,796 | 52,022 | 81,690 | 111,135 | ||||||||||||
Products and solutions net revenues | 99,858 | 124,991 | 198,576 | 252,697 | ||||||||||||
Services net revenues | 41,487 | 40,485 | 78,840 | 71,930 | ||||||||||||
Total net revenues | $ | 141,345 | $ | 165,476 | $ | 277,416 | $ | 324,627 | ||||||||
Schedule of Revenues and Long-lived Assets By Geographic Areas | ' | |||||||||||||||
The following table sets forth the Company’s revenues from continuing operations by geographic region for the three and six months ended June 30, 2013 and 2012 (Restated) (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Restated) | (Restated) | |||||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 56,110 | $ | 63,271 | $ | 106,925 | $ | 126,405 | ||||||||
Other Americas | 11,733 | 11,743 | 24,836 | 25,099 | ||||||||||||
Europe, Middle East and Africa | 52,230 | 65,657 | 103,501 | 124,382 | ||||||||||||
Asia-Pacific | 21,272 | 24,805 | 42,154 | 48,741 | ||||||||||||
Total net revenues | $ | 141,345 | $ | 165,476 | $ | 277,416 | $ | 324,627 | ||||||||
FINANCIAL_INFORMATION_Revised_1
FINANCIAL INFORMATION Revised Consolidated Balance Sheets (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $48,203 | $56,104 | $70,390 |
Accounts receivable | ' | 55,647 | 67,956 |
Inventories | ' | 63,247 | 69,143 |
Deferred tax assets, net | ' | 547 | 586 |
Prepaid expenses | ' | 8,838 | 9,060 |
Other current assets | ' | 19,025 | 19,950 |
Total current assets | ' | 203,408 | 237,085 |
Property and equipment, net | ' | 37,444 | 41,441 |
Intangible assets, net | ' | 6,528 | 9,217 |
Other assets | ' | 2,666 | 3,793 |
Total assets | ' | 252,775 | 294,361 |
Current liabilities: | ' | ' | ' |
Accounts payable | ' | 28,703 | 35,425 |
Accrued compensation and benefits | ' | 22,774 | 25,177 |
Accrued expenses and other current liabilities | ' | 31,658 | 34,003 |
Income taxes payable | ' | 6,964 | 7,969 |
Deferred revenues | ' | 222,446 | 230,305 |
Total current liabilities | ' | 312,738 | 333,082 |
Long-term liabilities | ' | 15,538 | 17,978 |
Total liabilities | ' | 620,501 | 679,953 |
Stockholders' equity: | ' | ' | ' |
Common stock | ' | 423 | 423 |
Additional paid-in capital | ' | 1,040,980 | 1,039,562 |
Accumulated deficit | ' | -1,340,238 | -1,357,679 |
Treasury stock at cost, net of reissuances | ' | -72,830 | -75,542 |
Accumulated other comprehensive income | ' | 3,939 | 7,644 |
Total stockholders' equity | ' | -367,726 | -385,592 |
Total liabilities and stockholders' equity | ' | $252,775 | $294,361 |
FINANCIAL_INFORMATION_Revised_2
FINANCIAL INFORMATION Revised Consolidated Statements of Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 |
Net revenues: | ' | ' | ' | ' |
Products | $99,858 | $124,991 | $198,576 | $252,697 |
Services | 41,487 | ' | 78,840 | ' |
Total net revenues | 141,345 | 165,476 | 277,416 | 324,627 |
Cost of revenues: | ' | ' | ' | ' |
Products | 38,902 | ' | 75,917 | ' |
Services | 15,392 | ' | 30,668 | ' |
Amortization of intangible assets | 501 | ' | 1,152 | ' |
Total cost of revenues | 54,795 | ' | 107,737 | ' |
Gross profit | 86,550 | ' | 169,679 | ' |
Operating expenses: | ' | ' | ' | ' |
Research and development | 23,847 | ' | 47,454 | ' |
Marketing and selling | 33,903 | ' | 67,812 | ' |
General and administrative | 16,131 | ' | 31,728 | ' |
Amortization of intangible assets | 658 | ' | 1,321 | ' |
Restructuring costs, net | 1,918 | ' | 2,191 | ' |
Loss on sale of assets | ' | ' | -125 | ' |
Total operating expenses | 76,457 | ' | 150,506 | ' |
Operating loss | 10,093 | ' | 19,173 | ' |
Interest income | 122 | ' | 195 | ' |
Interest expense | -374 | ' | -709 | ' |
Other income, net | 5 | ' | 9 | ' |
Loss before income taxes | 9,846 | ' | 18,668 | ' |
Provision for income taxes, net | 669 | ' | 1,226 | ' |
Net loss | $9,177 | ' | $17,442 | ' |
Net loss per common share - basic | $0.24 | ' | $0.45 | ' |
Net loss per common share - diluted | $0.23 | $0.09 | $0.45 | $0.50 |
Weighted-average common shares outstanding - diluted | 39,069 | 38,798 | 39,061 | 38,759 |
FINANCIAL_INFORMATION_Subseque
FINANCIAL INFORMATION Subsequent Divestiture of Consumer Audio and Video Businesses and 2012 Restructuring Plan (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring costs, net | $1,918 | $2,191 |
FINANCIAL_INFORMATION_Financia
FINANCIAL INFORMATION Financial Information (Details) (USD $) | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 29, 2014 | Aug. 29, 2014 | Aug. 29, 2014 | Aug. 29, 2014 | Aug. 29, 2014 | Aug. 29, 2014 | |
Wells Fargo Capital Finance LLC [Member] | Wells Fargo Capital Finance LLC [Member] | Wells Fargo Capital Finance LLC [Member] | Wells Fargo Capital Finance LLC [Member] | Wells Fargo Capital Finance LLC [Member] | Wells Fargo Capital Finance LLC [Member] | ||||
Credit Agreement Amendment [Member] | Avid Technology International BV [Member] | Avid Technology International BV [Member] | Avid Technology Domestic [Member] | Avid Technology Domestic [Member] | |||||
Credit Agreement Amendment [Member] | Credit Agreement Amendment [Member] | ||||||||
Payments for Restructuring | ($7,415,000) | ($13,200,000) | ' | ' | ' | ' | ' | ' | ' |
Payments for Executive Management Changes | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | 56,104,000 | 48,203,000 | 70,390,000 | ' | ' | ' | ' | ' | ' |
Net Cash Provided by (Used in) Operating Activities | -5,556,000 | -9,145,000 | ' | ' | ' | ' | ' | ' | ' |
Payments for Restatement Activities | ' | 13,200,000 | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | 60,000,000 | ' | 20,000,000 | 15,000,000 | 40,000,000 | 45,000,000 |
Line of Credit Facility Required EBITDA | ' | ' | ' | ' | 33,800,000 | ' | ' | ' | ' |
Line of Credit Facility, Capital Expenditures Restrictions | ' | ' | ' | ' | $16,000,000 | ' | ' | ' | ' |
RESTATEMENT_OF_CONSOLIDATED_FI3
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS (Details) (USD $) | 6 Months Ended | 3 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 |
Cumulative Impact of Prior Period Restructuring Adjustments [Member] | ||
Restructuring Reserve, Accrual Adjustment | $958 | $1,400 |
RESTATEMENT_OF_CONSOLIDATED_FI4
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS Adjustments to Condensed Consolidated Statement of Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 |
Products | $99,858 | $124,991 | $198,576 | $252,697 |
Services | 41,487 | ' | 78,840 | ' |
Total net revenues | 141,345 | 165,476 | 277,416 | 324,627 |
Products | 38,902 | ' | 75,917 | ' |
Services | 15,392 | ' | 30,668 | ' |
Amortization of intangible assets | 501 | ' | 1,152 | ' |
Total cost of revenues | 54,795 | ' | 107,737 | ' |
Gross profit | 86,550 | ' | 169,679 | ' |
Research and development | 23,847 | ' | 47,454 | ' |
Marketing and selling | 33,903 | ' | 67,812 | ' |
General and administrative | 16,131 | ' | 31,728 | ' |
Amortization of Intangible Assets | 658 | ' | 1,321 | ' |
Restructuring Charges | 1,918 | ' | 2,191 | ' |
Total operating expenses | 76,457 | ' | 150,506 | ' |
Operating (loss) income | 10,093 | ' | 19,173 | ' |
Interest income | 122 | ' | 195 | ' |
Interest expense | -374 | ' | -709 | ' |
Other income, net | 5 | ' | 9 | ' |
(Loss) income from continuing operations before income taxes | 9,846 | ' | 18,668 | ' |
Provision for income taxes, net | 669 | ' | 1,226 | ' |
(Loss) income from continuing operations, net of tax | 9,177 | ' | 17,442 | ' |
Income from divested operations | 0 | ' | 0 | ' |
Income from discontinued operations, net of tax | 0 | ' | 0 | ' |
Net (loss) income | 9,177 | ' | 17,442 | ' |
Weighted-average common shares outstanding b diluted | 39,069 | 38,798 | 39,061 | 38,759 |
Restatement Adjustment [Member] | ' | ' | ' | ' |
Products | ' | 25,270 | ' | 55,834 |
Services | ' | 6,080 | ' | 5,323 |
Total net revenues | ' | 31,350 | ' | 61,157 |
Products | ' | 0 | ' | 0 |
Services | ' | 0 | ' | 0 |
Amortization of intangible assets | ' | 0 | ' | 0 |
Total cost of revenues | ' | 0 | ' | 0 |
Gross profit | ' | 31,350 | ' | 61,157 |
Research and development | ' | 0 | ' | 0 |
Marketing and selling | ' | 0 | ' | 0 |
General and administrative | ' | 0 | ' | 0 |
Amortization of Intangible Assets | ' | 0 | ' | 0 |
Restructuring Charges | ' | 0 | ' | 0 |
Gain on sale of assets | ' | 0 | ' | 0 |
Total operating expenses | ' | 0 | ' | 0 |
Operating (loss) income | ' | 31,350 | ' | 61,157 |
Interest income | ' | 0 | ' | 0 |
Interest expense | ' | 0 | ' | 0 |
Other income, net | ' | 0 | ' | 0 |
(Loss) income from continuing operations before income taxes | ' | 31,350 | ' | 61,157 |
Provision for income taxes, net | ' | 0 | ' | 0 |
(Loss) income from continuing operations, net of tax | ' | 31,350 | ' | 61,157 |
Income from divested operations | ' | 0 | ' | 0 |
Income from discontinued operations, net of tax | ' | 0 | ' | 0 |
Net (loss) income | ' | 31,350 | ' | 61,157 |
Other Adjustment [Member] | ' | ' | ' | ' |
Products | ' | 0 | ' | 0 |
Services | ' | 0 | ' | 0 |
Total net revenues | ' | 0 | ' | 0 |
Products | ' | -262 | ' | -753 |
Services | ' | 2,004 | ' | 3,698 |
Amortization of intangible assets | ' | 0 | ' | 0 |
Total cost of revenues | ' | 1,742 | ' | 2,945 |
Gross profit | ' | -1,742 | ' | -2,945 |
Research and development | ' | 142 | ' | -102 |
Marketing and selling | ' | -16 | ' | -2,913 |
General and administrative | ' | 15 | ' | 293 |
Amortization of Intangible Assets | ' | 1 | ' | 0 |
Restructuring Charges | ' | -1,404 | ' | -1,128 |
Gain on sale of assets | ' | 0 | ' | 0 |
Total operating expenses | ' | -1,262 | ' | -3,850 |
Operating (loss) income | ' | -480 | ' | 905 |
Interest income | ' | 2 | ' | 30 |
Interest expense | ' | 2 | ' | 30 |
Other income, net | ' | 0 | ' | 0 |
(Loss) income from continuing operations before income taxes | ' | -480 | ' | 905 |
Provision for income taxes, net | ' | -1,839 | ' | 310 |
(Loss) income from continuing operations, net of tax | ' | 1,359 | ' | 595 |
Income from divested operations | ' | 0 | ' | 0 |
Income from discontinued operations, net of tax | ' | 0 | ' | 0 |
Net (loss) income | ' | 1,359 | ' | 595 |
Discontinued Operations [Member] | ' | ' | ' | ' |
Products | ' | -23,305 | ' | -46,101 |
Services | ' | 0 | ' | 0 |
Total net revenues | ' | -23,305 | ' | -46,101 |
Products | ' | -18,030 | ' | -33,265 |
Services | ' | 0 | ' | ' |
Amortization of intangible assets | ' | 0 | ' | 0 |
Total cost of revenues | ' | -18,030 | ' | -33,265 |
Gross profit | ' | -5,275 | ' | -12,836 |
Research and development | ' | -777 | ' | -1,554 |
Marketing and selling | ' | -1,156 | ' | -2,312 |
General and administrative | ' | -569 | ' | -1,138 |
Amortization of Intangible Assets | ' | 0 | ' | 0 |
Restructuring Charges | ' | 0 | ' | 0 |
Gain on sale of assets | ' | -9,951 | ' | -9,951 |
Total operating expenses | ' | -12,453 | ' | -14,955 |
Operating (loss) income | ' | 7,178 | ' | 2,119 |
Interest income | ' | 0 | ' | 0 |
Interest expense | ' | 0 | ' | 0 |
Other income, net | ' | 0 | ' | 0 |
(Loss) income from continuing operations before income taxes | ' | 7,178 | ' | 2,119 |
Provision for income taxes, net | ' | 0 | ' | 0 |
(Loss) income from continuing operations, net of tax | ' | 7,178 | ' | 2,119 |
Income from divested operations | ' | 2,773 | ' | 7,832 |
Income from discontinued operations, net of tax | ' | 2,773 | ' | 7,832 |
Net (loss) income | ' | 9,951 | ' | 9,951 |
Scenario, Actual [Member] | ' | ' | ' | ' |
Products | ' | 124,991 | ' | 252,697 |
Services | ' | 40,485 | ' | 71,930 |
Total net revenues | ' | 165,476 | ' | 324,627 |
Products | ' | 50,983 | ' | 96,465 |
Services | ' | 16,329 | ' | 30,740 |
Amortization of intangible assets | ' | 644 | ' | 1,294 |
Total cost of revenues | ' | 67,956 | ' | 128,499 |
Gross profit | ' | 97,520 | ' | 196,128 |
Research and development | ' | 26,261 | ' | 52,721 |
Marketing and selling | ' | 42,282 | ' | 84,155 |
General and administrative | ' | 13,351 | ' | 27,699 |
Amortization of Intangible Assets | ' | 1,106 | ' | 2,717 |
Restructuring Charges | ' | 14,437 | ' | 14,881 |
Gain on sale of assets | ' | 0 | ' | 0 |
Total operating expenses | ' | 97,437 | ' | 182,173 |
Operating (loss) income | ' | 83 | ' | 13,955 |
Interest income | ' | 16 | ' | 145 |
Interest expense | ' | -407 | ' | -750 |
Other income, net | ' | 12 | ' | 32 |
(Loss) income from continuing operations before income taxes | ' | -296 | ' | 13,382 |
Provision for income taxes, net | ' | -936 | ' | 1,736 |
(Loss) income from continuing operations, net of tax | ' | 640 | ' | 11,646 |
Income from divested operations | ' | 2,773 | ' | 7,832 |
Income from discontinued operations, net of tax | ' | 2,773 | ' | 7,832 |
Net (loss) income | ' | 3,413 | ' | 19,478 |
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | ' | $0.02 | ' | $0.30 |
Income per share from discontinued operations, net of tax b basic and diluted | ' | $0.07 | ' | $0.20 |
Net (loss) income per common share - basic and diluted | ' | $0.09 | ' | $0.50 |
Weighted-average common shares outstanding b basic | ' | 38,778 | ' | 38,720 |
Weighted-average common shares outstanding b diluted | ' | 38,778 | ' | 38,759 |
Scenario, Previously Reported [Member] | ' | ' | ' | ' |
Products | ' | 123,026 | ' | 242,964 |
Services | ' | 34,405 | ' | 66,607 |
Total net revenues | ' | 157,431 | ' | 309,571 |
Products | ' | 69,275 | ' | 130,483 |
Services | ' | 14,325 | ' | 27,042 |
Amortization of intangible assets | ' | 644 | ' | 1,294 |
Total cost of revenues | ' | 84,244 | ' | 158,819 |
Gross profit | ' | 73,187 | ' | 150,752 |
Research and development | ' | 26,896 | ' | 54,377 |
Marketing and selling | ' | 43,454 | ' | 89,380 |
General and administrative | ' | 13,905 | ' | 28,544 |
Amortization of Intangible Assets | ' | 1,105 | ' | 2,717 |
Restructuring Charges | ' | 15,841 | ' | 16,009 |
Gain on sale of assets | ' | 9,951 | ' | 9,951 |
Total operating expenses | ' | 111,152 | ' | 200,978 |
Operating (loss) income | ' | -37,965 | ' | -50,226 |
Interest income | ' | 14 | ' | 115 |
Interest expense | ' | 405 | ' | 720 |
Other income, net | ' | 12 | ' | 32 |
(Loss) income from continuing operations before income taxes | ' | -38,344 | ' | -50,799 |
Provision for income taxes, net | ' | 903 | ' | 1,426 |
(Loss) income from continuing operations, net of tax | ' | -39,247 | ' | -52,225 |
Income from divested operations | ' | 0 | ' | 0 |
Income from discontinued operations, net of tax | ' | 0 | ' | 0 |
Net (loss) income | ' | ($39,247) | ' | ($52,225) |
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | ' | ($1.01) | ' | ($1.35) |
Income per share from discontinued operations, net of tax b basic and diluted | ' | $0 | ' | $0 |
Net (loss) income per common share - basic and diluted | ' | ($1.01) | ' | ($1.35) |
Weighted-average common shares outstanding b basic | ' | 38,778 | ' | 38,720 |
Weighted-average common shares outstanding b diluted | ' | 38,778 | ' | 38,720 |
RESTATEMENT_OF_CONSOLIDATED_FI5
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS Adjustments to Condensed Consolidated Statement of Cash Flows (Details) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | ||||
Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | |
Restatement Adjustment [Member] | Other Adjustment [Member] | Discontinued Operations [Member] | Scenario, Actual [Member] | Scenario, Previously Reported [Member] | |||
Net (loss) income | $17,442,000 | ' | $61,157,000 | $595,000 | $9,951,000 | $19,478,000 | ($52,225,000) |
Depreciation and amortization | 11,800,000 | ' | 0 | -1,668,000 | 0 | 14,516,000 | 16,184,000 |
(Recovery from) provision for doubtful accounts | 30,000 | ' | 0 | -34,000 | 0 | -96,000 | -62,000 |
Non-cash provision for restructuring | ' | ' | 0 | -2,633,000 | 0 | 0 | 2,633,000 |
Non-cash provision for allowances related to divestitures | ' | ' | 0 | -2,848,000 | 0 | 0 | 2,848,000 |
Gain on sales of assets | -125,000 | ' | 0 | -4,000 | 0 | -252,000 | 256,000 |
Loss on divestiture | ' | ' | 0 | 0 | -9,951,000 | 0 | 9,951,000 |
Stock-based compensation expense | 4,185,000 | ' | 0 | 2,031,000 | 0 | 7,405,000 | 5,374,000 |
Non-cash interest expense | 147,000 | ' | 0 | 74,000 | 0 | 147,000 | 73,000 |
Foreign currency transaction gains | -84,000 | ' | 0 | 971,000 | 0 | -1,819,000 | 848,000 |
Provision for deferred taxes | 9,000 | ' | 0 | 0 | 0 | 823,000 | -823,000 |
Accounts receivable | 12,277,000 | ' | 3,230,000 | -3,175,000 | 0 | 12,262,000 | -12,317,000 |
Inventories | 5,896,000 | ' | 0 | -1,671,000 | 0 | 22,638,000 | -20,967,000 |
Prepaid expenses and other current assets | 1,225,000 | ' | 0 | -1,075,000 | 0 | -1,242,000 | 2,317,000 |
Accounts payable | -6,661,000 | ' | 0 | 0 | 0 | -3,531,000 | -3,531,000 |
Accrued expenses, compensation and benefits and other liabilities | -6,516,000 | ' | 0 | -144,000 | 0 | 4,916,000 | 5,060,000 |
Income taxes payable | -680,000 | ' | 0 | 104,000 | 0 | 2,274,000 | 2,170,000 |
Deferred revenues | -44,501,000 | ' | -57,927,000 | 0 | 0 | -44,756,000 | 13,171,000 |
Net cash provided by operating activities | -5,556,000 | -9,145,000 | 0 | 431,000 | 0 | 32,763,000 | 32,332,000 |
Purchases of property and equipment | -5,290,000 | ' | 0 | -214,000 | 0 | -5,023,000 | 5,237,000 |
Increase in other long-term assets | -18,000 | ' | 0 | -131,000 | 0 | -30,000 | 161,000 |
Proceeds from sale of assets | 125,000 | ' | ' | ' | ' | 0 | ' |
Net cash used in investing activities | -5,183,000 | ' | 0 | 345,000 | 0 | -5,053,000 | -5,398,000 |
Proceeds from the issuance of common stock under employee stock plans, net | 177,000 | ' | 0 | 493,000 | 0 | 573,000 | 80,000 |
Common stock repurchases for tax withholdings for net settlement of equity awards | 232,000 | ' | 0 | -493,000 | 0 | 493,000 | 0 |
Proceeds from revolving credit facilities | 0 | ' | 0 | 0 | 0 | 1,000,000 | 1,000,000 |
Payments on revolving credit facilities | 0 | ' | 0 | 0 | 0 | -1,000,000 | 1,000,000 |
Net cash provided by financing activities | -55,000 | ' | 0 | 0 | 0 | 80,000 | 80,000 |
Effect of Exchange Rate on Cash and Cash Equivalents | -3,492,000 | ' | 0 | -776,000 | 0 | -1,262,000 | -486,000 |
Net decrease in cash and cash equivalents | -14,286,000 | ' | 0 | 0 | 0 | 26,528,000 | 26,528,000 |
Cash and Cash Equivalents, at Carrying Value | $56,104,000 | $48,203,000 | $0 | $0 | $0 | $59,383,000 | $59,383,000 |
NET_INCOME_LOSS_PER_SHARE_NET_2
NET INCOME (LOSS) PER SHARE NET LOSS PER SHARE (Details) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 |
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive potential common shares (in thousands of shares) | 5,746 | 7,615 | 5,902 | 6,933 |
Stock Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive potential common shares (in thousands of shares) | 5,386 | 6,854 | 5,495 | 6,249 |
Non-Vested Restricted Stock and Restricted Stock Units [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive potential common shares (in thousands of shares) | 360 | 761 | 407 | 684 |
FOREIGN_CURRENCY_FORWARD_CONTR2
FOREIGN CURRENCY FORWARD CONTRACTS (Details) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | |
Foreign Currency Forward Contract [Member] | Foreign Currency Forward Contract [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | |
Marketing and Selling Expense [Member] | Marketing and Selling Expense [Member] | Marketing and Selling Expense [Member] | Marketing and Selling Expense [Member] | Other Current Assets [Member] | Other Current Assets [Member] | Accrued Expenses and Other Current Liabilities [Member] | Accrued Expenses and Other Current Liabilities [Member] | |||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency forward contracts, average maturity (in days) | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency forward contracts, fair value | ' | ' | ' | ' | ' | ' | $54,000 | $157,000 | ' | ' | ' | ' |
Financial liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency forward contracts, fair value | ' | ' | ' | ' | ' | ' | ' | ' | 149,000 | 337,000 | ' | ' |
Foreign currency forward contracts and revaluation of hedged items, net | ' | ' | 127,000 | -306,000 | 392,000 | -431,000 | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | $30,800,000 | $23,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | $5,100,000 | $5,300,000 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ' | ' |
Deferred compensation assets | $1,695 | $1,680 |
Foreign currency forward contracts | 54 | 157 |
Financial Liabilities: | ' | ' |
Foreign currency forward contracts | 149 | 337 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial Assets: | ' | ' |
Deferred compensation assets | 1,103 | 1,097 |
Foreign currency forward contracts | 0 | 0 |
Financial Liabilities: | ' | ' |
Foreign currency forward contracts | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Assets: | ' | ' |
Deferred compensation assets | 592 | 583 |
Foreign currency forward contracts | 54 | 157 |
Financial Liabilities: | ' | ' |
Foreign currency forward contracts | 149 | 337 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Financial Assets: | ' | ' |
Deferred compensation assets | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Financial Liabilities: | ' | ' |
Foreign currency forward contracts | $0 | $0 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $10,411,000 | $11,095,000 |
Work in process | 191,000 | 293,000 |
Finished Goods | 52,645,000 | 57,755,000 |
Total inventory | 63,247,000 | 69,143,000 |
Finished goods, consigned | $5,800,000 | $3,700,000 |
DISCONTINUED_OPERATIONS_Income
DISCONTINUED OPERATIONS Income from Discontinued Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 |
Revenue, Net | $141,345 | $165,476 | $277,416 | $324,627 |
Cost of Revenue | 54,795 | ' | 107,737 | ' |
Gross Profit | 86,550 | ' | 169,679 | ' |
Operating Expenses | 76,457 | ' | 150,506 | ' |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | ' | 0 | ' |
Consumer Business Divestiture [Member] | ' | ' | ' | ' |
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | ' | 14,841 | ' | 14,841 |
Assets of Disposal Group, Including Discontinued Operation | ' | 25,032 | ' | 25,032 |
Significant Acquisitions and Disposals, Costs to Sell | ' | -1,901 | ' | -1,901 |
Significant Acquisitions and Disposals, Gain (Loss) on Sale or Disposal, Net of Tax | ' | 37,972 | ' | 37,972 |
Income from Discontinued Operations [Member] | ' | ' | ' | ' |
Revenue, Net | ' | 23,305 | ' | 46,101 |
Cost of Revenue | ' | 18,030 | ' | 33,265 |
Gross Profit | ' | 5,275 | ' | 12,836 |
Operating Expenses | ' | 2,502 | ' | 5,004 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | ' | $2,773 | ' | $7,832 |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | Jul. 02, 2012 | Jul. 02, 2012 | Jun. 30, 2012 |
Numark Industries, L.P. [Member] | Corel Corporation [Member] | Consumer Business Divestiture [Member] | |
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | $11,800,000 | $3,000,000 | $14,841,000 |
Current Assets Held-for-Sale, Proceeds from Sale | 10,900,000 | 2,400,000 | ' |
Assets of Disposal Group, Including Discontinued Operation | ' | ' | 25,032,000 |
Significant Acquisitions and Disposals, Costs to Sell | ' | ' | -1,901,000 |
Significant Acquisitions and Disposals, Gain (Loss) on Sale or Disposal, Net of Tax | ' | ' | $37,972,000 |
GOODWILL_AND_IDENTIFIABLE_INTA1
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Amortization of Finite-Lived Intangible Assets | $1,200,000 | $2,000,000 | $2,700,000 | $4,600,000 | ' |
Amortizing Identifiable Intangible Assets [Abstract] | ' | ' | ' | ' | ' |
Gross | 113,868,000 | ' | 113,868,000 | ' | 114,171,000 |
Accumulated Amortization | -107,340,000 | ' | -107,340,000 | ' | -104,954,000 |
Net | 6,528,000 | ' | 6,528,000 | ' | 9,217,000 |
Future expected amortization expense, identifiable intangible assets | ' | ' | ' | ' | ' |
2011 | 2,000,000 | ' | 2,000,000 | ' | ' |
2012 | 2,000,000 | ' | 2,000,000 | ' | ' |
2013 | 2,000,000 | ' | 2,000,000 | ' | ' |
2014 | 1,000,000 | ' | 1,000,000 | ' | ' |
Completed Technologies and Patents [Member] | ' | ' | ' | ' | ' |
Amortizing Identifiable Intangible Assets [Abstract] | ' | ' | ' | ' | ' |
Gross | 52,501,000 | ' | 52,501,000 | ' | 52,720,000 |
Accumulated Amortization | -52,135,000 | ' | -52,135,000 | ' | -51,171,000 |
Net | 366,000 | ' | 366,000 | ' | 1,549,000 |
Customer Relationships [Member] | ' | ' | ' | ' | ' |
Amortizing Identifiable Intangible Assets [Abstract] | ' | ' | ' | ' | ' |
Gross | 49,469,000 | ' | 49,469,000 | ' | 49,543,000 |
Accumulated Amortization | -44,081,000 | ' | -44,081,000 | ' | -42,828,000 |
Net | 5,388,000 | ' | 5,388,000 | ' | 6,715,000 |
Trade Names [Member] | ' | ' | ' | ' | ' |
Amortizing Identifiable Intangible Assets [Abstract] | ' | ' | ' | ' | ' |
Gross | 5,962,000 | ' | 5,962,000 | ' | 5,970,000 |
Accumulated Amortization | -5,962,000 | ' | -5,962,000 | ' | -5,970,000 |
Net | 0 | ' | 0 | ' | 0 |
Software and Software Development Costs [Member] | ' | ' | ' | ' | ' |
Amortizing Identifiable Intangible Assets [Abstract] | ' | ' | ' | ' | ' |
Gross | 5,936,000 | ' | 5,936,000 | ' | 5,938,000 |
Accumulated Amortization | -5,162,000 | ' | -5,162,000 | ' | -4,985,000 |
Net | $774,000 | ' | $774,000 | ' | $953,000 |
LONGTERM_LIABILITIES_Details
LONG-TERM LIABILITIES (Details) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Long-term deferred rent | $8,376 | $8,923 |
Long-term accrued restructuring | 3,282 | 5,119 |
Long-term deferred compensation | 3,880 | 3,936 |
Total long-term liabilities | $15,538 | $17,978 |
CONTINGENCIES_Details
CONTINGENCIES (Details) (USD $) | 6 Months Ended | |||||||
Jun. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | |
Ministry of Revenue Quebec [Member] | Ministry of Revenue Quebec [Member] | Standby Letters of Credit [Member] | Standby Letters of Credit [Member] | Avid Technology Domestic [Member] | ||||
Office Space - Burlington, Massachusetts [Member] | Office Space - Daly City, California [Member] | Standby Letters of Credit [Member] | ||||||
Operating Lease Commitments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum exposure | ' | ' | ' | ' | ' | $2,600,000 | $800,000 | ' |
Minimum exposure | ' | ' | ' | ' | ' | 1,200,000 | ' | ' |
Letters of Credit Outstanding, Amount | ' | ' | ' | ' | ' | ' | ' | 1,800,000 |
Contingencies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Amount assessed and paid related to social taxes on stock-based compensation | ' | ' | ' | ' | 1,700,000 | ' | ' | ' |
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | ' | ' | ' | 1,900,000 | ' | ' | ' | ' |
Product warranty accrual, allocation to divestitures | 0 | -507,000 | ' | ' | ' | ' | ' | ' |
Product warranty accrual [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual balance at beginning of year | 4,476,000 | 4,743,000 | 5,639,000 | ' | ' | ' | ' | ' |
Accruals for product warranties | 1,531,000 | 4,980,000 | ' | ' | ' | ' | ' | ' |
Cost of warranty claims | -2,317,000 | -3,577,000 | ' | ' | ' | ' | ' | ' |
Accrual balance at end of period | $3,690,000 | ' | $5,639,000 | ' | ' | ' | ' | ' |
RESTRUCTURING_COSTS_AND_ACCRUA3
RESTRUCTURING COSTS AND ACCRUALS (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 9 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | |
employee related [Member] | Employee Severance [Member] | Employee Severance [Member] | Employee Severance [Member] | Non-Acquisition-Related [Member] | Non-Acquisition-Related [Member] | Facilities-Related [Member] | Facilities-Related [Member] | Facilities-Related [Member] | Facilities-Related [Member] | Facilities-Related [Member] | ||||||
Divestiture-Related [Member] | Divestiture-Related [Member] | Non-Acquisition-Related [Member] | Acquisition-Related [Member] | Employee Severance [Member] | Facilities-Related [Member] | Divestiture-Related [Member] | Divestiture-Related [Member] | Non-Acquisition-Related [Member] | Acquisition-Related [Member] | |||||||
Restructuring Plan 2012 [Member] | Restructuring Plan 2012 [Member] | Restructuring Plan 2013 [Member] | Restructuring Plan 2012 [Member] | Restructuring Plan 2012 [Member] | Restructuring Plan 2012 [Member] | |||||||||||
facility | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New Restructuring Charges | ' | $1,233,000 | ' | ' | ' | ' | ' | ' | $0 | $1,233,000 | $0 | ' | ' | ' | ' | $0 |
Number of positions eliminated | ' | ' | ' | ' | ' | 280 | ' | 31 | ' | ' | ' | ' | ' | ' | ' | ' |
Severance costs | ' | ' | ' | ' | ' | ' | 13,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring costs, closure of facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 8,600,000 | ' | ' |
Number of facilities closed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Restructuring accrual [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual balance at beginning of year | ' | 15,733,000 | ' | 15,733,000 | ' | ' | ' | ' | 0 | 4,299,000 | 10,839,000 | ' | ' | ' | ' | 595,000 |
Restructuring Charges | 1,918,000 | 2,191,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revisions of estimated liabilities | ' | 958,000 | ' | ' | ' | ' | ' | ' | 0 | 83,000 | 875,000 | ' | ' | ' | ' | 0 |
Accretion | ' | 273,000 | ' | ' | ' | ' | ' | ' | ' | 0 | 257,000 | ' | ' | ' | ' | 16,000 |
Cash payments for employee-related charges | ' | -7,415,000 | ' | -13,200,000 | ' | ' | ' | ' | 0 | -3,744,000 | -3,446,000 | ' | ' | ' | ' | -225,000 |
Non-cash write-offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | ' |
Foreign exchange impact on ending balance | ' | -144,000 | ' | ' | ' | ' | ' | ' | 0 | -71,000 | -73,000 | ' | ' | ' | ' | 0 |
Accrual balance at end of period | 10,638,000 | 10,638,000 | ' | ' | ' | ' | ' | ' | 0 | 1,800,000 | 8,452,000 | ' | ' | ' | ' | 386,000 |
Facilities-related accruals - current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000 | ' | ' | ' | ' |
Facilities-related accruals - non-current | 3,282,000 | 3,282,000 | ' | ' | 5,119,000 | ' | ' | ' | ' | ' | ' | 3,300,000 | ' | ' | ' | ' |
Deferred Rent Liability Write-Off | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Restructuring Plan, Estimate Revision | ' | $200,000 | $800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Product Revenues | $99,858 | $124,991 | $198,576 | $252,697 |
Services revenues | 41,487 | ' | 78,840 | ' |
Total net revenues | 141,345 | 165,476 | 277,416 | 324,627 |
Revenues | 141,345 | 165,476 | 277,416 | 324,627 |
Video Products [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Product Revenues | 58,062 | 72,969 | 116,886 | 141,562 |
Audio Products [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Product Revenues | 41,796 | 52,022 | 81,690 | 111,135 |
Americas [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Total net revenues | 56,110 | 63,271 | 106,925 | 126,405 |
Revenues | 56,110 | 63,271 | 106,925 | 126,405 |
Other Americas [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Total net revenues | 11,733 | 11,743 | 24,836 | 25,099 |
Revenues | 11,733 | 11,743 | 24,836 | 25,099 |
Europe, Middle East and Africa [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Total net revenues | 52,230 | 65,657 | 103,501 | 124,382 |
Revenues | 52,230 | 65,657 | 103,501 | 124,382 |
Asia-Pacific [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Total net revenues | 21,272 | 24,805 | 42,154 | 48,741 |
Revenues | $21,272 | $24,805 | $42,154 | $48,741 |