Despite some supply-chain woes that led to an unwanted backlog of orders for its hardware products, Avid says the outlook is bright for its recently revamped Media Composer 2019 software, which it cited as a “particularly strong” performer in the third quarter.
In fact, Avid sold more new subscriptions to Media Composer, Pro Tools and Sibelius in the third quarter — 22,549 of them — than ever before, despite a price increase. That brings total subscriptions to 170,225, a 46% increase over the year-ago figure. (Pro Tools alone accounts for just over 100,000 of those.) Subscription billings tracked subscriptions closely, gaining 49% year-over-year, Avid said.
Avid’s maintenance revenue took a hit in the quarter, largely because Avid stopped selling maintenance contracts on older storage systems, including a number of ISIS models, the company said. But the company cited a “healthy” stream of maintenance revenue from its MediaCentral platform and from owners of perpetual licenses of its creative software tools.
Avid had warned investors last week that it faced a shortfall in hardware production that left it with a backlog of about $8.1 million in unfulfilled orders. On a conference call with investors yesterday, EVP and CFO Ken Gayron said that $3.9 million of that backlog had already shipped to customers, with the remainder expected to ship by November 15. Gayron said the company expects better performance from its new supply chain in the current quarter.
Avid said it expects to report revenue of between $405 million and $415 million for the full year, representing (non-GAAP) net income per share between $0.50 and $0.60.