Avid seeking feedback on closure of Sibelius UK office

[getz76]

Originally Posted by peter5992

We spent quite a bit of time sorting out Avid's financial situation, and it looks bad. Having heavily invested in Pro Tools personally I would not like to see Avid go under, but it doesn't look good.

I disagree with the assessment on the "background" page.

Cash and receivables/payables actually seem to be within normal fluctuations. The cashflow caveat is a standard "Risks & Exposure" type disclosure.

Avid is not threatened with "going under". The risk is they will not be able to continue to develop Pro Tools effectively or profitably. They could completely stop development of Pro Tools and focus on Media Composer and still remain a viable, though inefficient, company. That scenario is remote in possibility, though. More likely is they sell their assets to a bigger player split up to private players.

The sales of M-Audio were not included in inject cash; they were to cut costs and likely trimmed to aid in a sale of the core assets of Avid. The sale of M-Audio is going to result in both a cash and accounting hit to the balance sheet and income statement in the short-term. Costs with the RIF (reduction-in-force) include severances, mandatory Cobra, outbound employment counseling. A RIF is almost always a short-term hit for long-term gain.

The question/concern is who is going to purchase or manage Pro Tools/Sibelius going forward? Who purchases the assets? Is the current roadmap maintained, or do they go in a completely different direction? Will HDX be abandoned before it is adopted? That's the worry.