Avid delisted on NASDAQ

[ronwasserman]

Wow! First of all, Avid edited my post. I just had a few lines saying they had received the letter saying they were being delisted. AVID decided to add that LONG bit afterward. Odd if there is nothing to worry about.

As for the rest of you, how in the world do you think this is no big deal. They've just lost the confidence of every investment firm that exists. You really think investors will return in droves to support that same management IF they get listed again.

Read this:

Delisting doesn't necessarily mean that a company is going to go bankrupt. Just as there are plenty of private companies that survive without the stock market, it is possible for a company to be delisted and still be profitable. However, delisting can make it more difficult for a company to raise money, and in this respect, it sometimes is a first step towards bankruptcy. For example, delisting may trigger a company's creditors to call in loans, or its credit rating might be further downgraded, increasing its interest expenses and potentially even pushing it into the red.

And

Pink Sheets - Considered even riskier than the OTCBB, the pink sheets are a quotation service. They do not require that companies register with the Securities and Exchange Commission (SEC) or remain current in their periodic filings. The stocks on the pink sheets are very speculative.

And

As a shareholder, you should seriously revisit your investment decision in a company that has become delisted; in many cases, it may be better to cut your losses. A firm unable to meet the listing requirements of the exchange upon which it is traded is quite obviously not in a great position. Each case of delisting needs to be looked at on an individual basis. However, being kicked out of an exclusive club such as the NYSE or the Nasdaq is about as disgraceful for a company as it is prestigious for it to be listed in the first place.

Sounds great doesn't it.

[Jay_uk]

Originally Posted by Bill Denton

No, Delisting is a sign that some paperwork was not filed in a timely fashion. That's what this whole thing is all about.

No!...delisting is a RESULT that some paperwork was not filed in a timely fashion.
Plus your saying .."That's what this whole thing is all about."
Err..... i already know that...but thanks for the heads up
Oh and they are not "some paperwork" like your high school reports. They are Accounts and without them the world and its wife are fubared.

Why has it taken Avid almost 18-24 months and still no accounts.
And now they have sacked the auditors, because the auditors are at fault ....but ...but Avid hired them.
They cant even hire the right auditors, according to them....lol
Out of all the auditors in the world, Avid hires the inept one....if you believe that ...well

Go tell the investors and shareholders who have lost money that..."its no big thing to worry about"

[Jeff D.]

The paperwork problems must be pretty serious if they couldn't fix it in the year they have known about it. Plus, they fired Ernst & Young, one of the "big four" accounting firms. Now they plan to spend $25 to $34 MILLION with another of the big four, Deloitte & Touche to fix it.

Yes, AVID had a pile of cash to the tune of $48M at the end of 2013... but they plan to spend most of that with their new accounting firm in 2014.

They had better be releasing HDX Thundermega Super Pro this year if they're going to end up with cash in the bank after 2014.

I've been a customer since Sound Tools 1, and I want them to succeed. But I would need a lot of convincing to buy stock at this point.

[Emcha_audio]

Originally Posted by Jeff D.

The paperwork problems must be pretty serious if they couldn't fix it in the year they have known about it. Plus, they fired Ernst & Young, one of the "big four" accounting firms. Now they plan to spend $25 to $34 MILLION with another of the big four, Deloitte & Touche to fix it.

Yes, AVID had a pile of cash to the tune of $48M at the end of 2013... but they plan to spend most of that with their new accounting firm in 2014.

They had better be releasing HDX Thundermega Super Pro this year if they're going to end up with cash in the bank after 2014.

I've been a customer since Sound Tools 1, and I want them to succeed. But I would need a lot of convincing to buy stock at this point.

They actually had more than that if I remember right, just by the sale of M-audio and Air. Something around the 97 M in pays/research etc they don't have to spend anymore for both divisions of the companies. I don't know for this accounting year (2013), but last year (2012) they were standing on over 200 M on cash and assets. And it's pretty obvious of why they would change accounting firm after finding out than their books were not meeting the norms.. someone would have to be an idiot to remain with the same firm after so many years book were found faulty, no?

[bcwiz]

"The longs can make a lot of money if they banded together to oust Avid’s board of directors and CEO. Avid’s high-end video editing products and Pro Tools should be cash cows. There is value here that is obscured by terrible management."

[Jeff D.]

Originally Posted by Emcha_audio

They actually had more than that if I remember right, just by the sale of M-audio and Air. Something around the 97 M in pays/research etc they don't have to spend anymore for both divisions of the companies. I don't know for this accounting year (2013), but last year (2012) they were standing on over 200 M on cash and assets. And it's pretty obvious of why they would change accounting firm after finding out than their books were not meeting the norms.. someone would have to be an idiot to remain with the same firm after so many years book were found faulty, no?

- There isn't a 2013 Annual Report yet, so we don't know the whole financial picture. But the article I linked above said they held $48M in cash at the end of 2013, with no credit line balance (that's good).

- I guess it's not bad to change accounting firms; maybe they got a better deal elsewhere, or they just didn't get along with the people from Ernst & Young. But the timing is worrying... right in the middle of the delisting disaster. Ernst & Young is the accounting firm for Google, Coca-Cola, AT&T, Warner Bros, etc. so I suspect that they have people who can solve difficult problems.

- Check out AVID's SEC filings - If I'm reading those correctly, AVID execs have been selling stock for the last 6 months

[Emcha_audio]

Originally Posted by Jeff D.

- There isn't a 2013 Annual Report yet, so we don't know the whole financial picture. But the article I linked above said they held $48M in cash at the end of 2013, with no credit line balance (that's good).

- I guess it's not bad to change accounting firms; maybe they got a better deal elsewhere, or they just didn't get along with the people from Ernst & Young. But the timing is worrying... right in the middle of the delisting disaster. Ernst & Young is the accounting firm for Google, Coca-Cola, AT&T, Warner Bros, etc. so I suspect that they have people who can solve difficult problems.

- Check out AVID's SEC filings - If I'm reading those correctly, AVID execs have been selling stock for the last 6 months

Yeah that's why I said I didn't know for this accounting year (2013) but you have to understand that cash is not the only thing, you have to take into account everything the company owns also, because if needed, that can be turned into cash.

[Southsidemusic]

Why are we even talking about this guys

Go make music on your hard earned music gear and leave this to the folks at Avid who knows the real situation.

I don't understand why this is such a fun and forward moving thread but I am busy making music instead and maybe i missed the importance of this .. Whatever happens I could care less about who and what owns PT as long as I can work and make my living on PT. Some people just have too much time on their hands.

[Philthy]

Originally Posted by Bill Denton

No, Delisting is a sign that some paperwork was not filed in a timely fashion. That's what this whole thing is all about.

A while back, Avid became aware that there were problems with their books going back several years. Each year's "book" is built on previous years' "books", and since Avid had become aware that the previous books contained inaccurate data, they could not submit a report based on that data and claim under oath that the report contained correct data. Doing so could result in civil and/or criminal penalties against Avid and/or its executives.

Once again...it's really not a big deal...

It is a big deal Bill. The accounting fees they face are incredible and inexplicable and the inability to get it done in what has already been a great amount of time are both signs that this certainly is a big deal.

[Philthy]

Originally Posted by Southsidemusic

Why are we even talking about this guys

Go make music on your hard earned music gear and leave this to the folks at Avid who knows the real situation.

I don't understand why this is such a fun and forward moving thread but I am busy making music instead and maybe i missed the importance of this .. Whatever happens I could care less about who and what owns PT as long as I can work and make my living on PT. Some people just have too much time on their hands.

As a former Opcode customer, I'm not so blase when the creators of my most important tool are floundering.