New York, NY (March 1, 2013)—When Avid announced Monday that it was postponing its fourth-quarter earnings report due to an undisclosed accounting issue, stockholders and the industry at large were taken aback. Now the company is responding to concerns raised in the wake of the delay.
In response to queries from Pro Sound News and other outlets, the company released a statement noting, “We recognize there are questions about the delay of our Q4 and full year 2012 earnings announcement. We want to assure our customers, employees, business partners, and investors that this delay is due to a technical accounting evaluation, as stated in our press release. We continue to invest in product innovation and execute on our growth strategy, and have significant cash and liquidity, and no debt. We are well-positioned to support our customers’ ongoing success.”
In the wake of Avid’s delay, two law firms, Newman Ferrara LLP and Finkelstein Thompson LLP, announced on Tuesday investigations on behalf of shareholders. Avid circumspectly acknowledged these moves as well in its statement, noting, “In situations where companies have announced a delay in reporting earnings results, it is not unusual to see activity like this from certain law firms. However, according to our policy, we don't comment on this type of activity.”