BURLINGTON, MA—Avid returned to the NASDAQ Stock Market on December 8, where it is trading under its usual symbol, AVID. The relisting comes nearly 10 months after the company was delisted on February 25, 2014.
Just weeks prior to the delisting, Louis Hernandez, Jr., president and CEO, discussed the situation in an exclusive interview with Pro Sound News, pinning the situation on a judgment-based restatement issue. Calling on his CPA background, he offered, “There are judgments you make in the accounting process and it was determined that we had to review one that’s equaled almost eight years worth of data. It had to do with software that when you include improvements to that software, you have to determine how significant it is—and if it’s significant or insignificant, it changes the way you account for it.”
That, in turn, caused a domino effect that ultimately led to the company reviewing more than 7 million accounting entries regarding every update and upgrade made to every Avid product owned by every customer. Hampering the process was a switch midway when the company opted to work new auditors who hadn’t been involved in previous years’ statements. The NASDAQ delisting that followed resulted from an inability to file restatements by the extended deadlines. Hernandez told PSN at the time, “We’re confident we will resolve it and get back to where we need to be from a trading perspective. Interestingly, we’ll still be a publicly traded company; you just trade on a different exchange and we’ll continue to operate. We’re a strong company, we’re a large company, we generate cash and we have no debt. Viability is not an issue for us.”
In a statement regarding the relisting, John Frederick, executive vice president, chief financial and administrative officer of Avid, noted, “We believe this milestone offers current and future Avid shareholders an exciting opportunity to share in the success of our business through improved access to our common stock. We look forward to generating sustainable, profitable growth as we continue to execute on our plan to unlock the full potential of Avid.”