Avid lays off 200 employees on wake of MC6 announcement

Paul F said:
$165m/quarter for such a niche market.... impressive.
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$8 million in losses isn't though. 3-4 years of "downsizing" isn't necessarily a good thing. I'm not thinking that AVID is gonna fold or anything, but that's alot of R&D that they probably dropped. It doesn't boost my confidence in AVID products, that's for sure.
 
The revenue is an indicator why Apple may not be so keen supporting professional editors. That kind of revenue is chump change for Apple and the business probably represents a nuisance rather than a market for them.
 
Avid is a perfect example of an old company that refused to modernize itself and instead choose to rest on its 1990s-era laurels. Once the contracts with their big customers run out and those clients start migrating in droves to Premiere, it'll be too late.

My guess is they will be dead, or at least irrelevant, within 2-3 years.

Don't get all defensive..it's just my opinion.
 
Paul F said:
The revenue is an indicator why Apple may not be so keen supporting professional editors. That kind of revenue is chump change for Apple and the business probably represents a nuisance rather than a market for them.
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Agreed. What we video professional need to realize is that we are a small part of the tech sector. Companies like Dell, HP, and IBM target large business and enterprise clients. Apple targets consumers. Companies that target a small audience need to be nimble.

Avid's stock is trading near it's 52 week low. The company has seen revenue declines 5 quarters in a row and the company is short on cash. These are not signs of a healthy or *growing* company. Adobe on the other hand will have the advantage in terms of grabbing market share if FCP X does indeed crash and burn. (Which I think the jury is still out)

Will Avid be able to continue to innovate and keep pace with everyone else? Time will tell.
 
Paul F said:
The revenue is an indicator why Apple may not be so keen supporting professional editors. That kind of revenue is chump change for Apple and the business probably represents a nuisance rather than a market for them.
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Apple doesn't see FCP/FCS software sales as a primary revenue stream, it is enabling them to sell lots of hardware that has a ridiculous profit margin. Their 1/3 profit margin is the envy of the industry.
 
The professional world edits (now that FCPX came out) on Avid. All you can say about Avid is that it is a company that has been listening intently to its customers for the last 3 years. Additionally, having been given this gift from Apple will make this company stronger in the long run. I have lots of fellow pro editors as friends and all are doing the same, switching back to Avid.
 
I don't want AVID to fail. I want Lightworks to become a more viable solution and I want Apple to deliver a solid product with future iterations of FCPX. All those choices means that we win in the end.
 
Gary Huff said:
I don't want AVID to fail. I want Lightworks to become a more viable solution and I want Apple to deliver a solid product with future iterations of FCPX. All those choices means that we win in the end.
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Have you checked out the beta version of lightworks. It's pretty sweet. Can't wait for mac os version to come out...
 
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