Avid’s accounting needs some editing

Burlington's Avid Technology went from celebrating "c" to just plain "Argh" yesterday.

The maker of digital editing tools used to create the Oscar-winning film, among many others, disclosed it would indefinitely delay its quarterly earnings release because of an accounting issue.

That announcement, issued the morning after the Academy Awards ceremony, sent the company's stock stumbling like Jennifer Lawrence, who tripped on her way to accept best-actress honors for another Avid customer's film, "Silver Linings Playbook."

Avid shares lost nearly 9 percent, closing at $6.98 on the Nasdaq. The stock is down 68 percent from its 52-week high.

The fourth-quarter earnings release and an investor conference call were previously scheduled for today, but Avid said it needs more time to "evaluate its current and historical accounting treatment related to bug fixes, upgrades and enhancements to certain products" provided to customers.

"The company is working diligently to complete its evaluation, but is currently unable to estimate when the evaluation will be completed," Avid said in a statement. A company spokeswoman declined further comment.

Last year, Avid cut about 350 jobs and sold some product lines, then posted larger-than-expected losses in the third quarter. Earlier this month, board member Louis Hernandez took over as CEO.

The company's video editing and production software business has "slowly been eroded" by cheaper film editing products such as Apple's iMovie and Final Cut Pro, said Roger Kay, a Wayland technology analyst.

"If you're Steven Spielberg, you still need Avid, but how many Spielbergs are out there that need that," Kay said. "It's not enough to sustain a market."

After the earnings-delay announcement, Avid issued a news release noting that all of the films nominated in the Oscars' Best Editing category were cut by Avid customers.

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