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What: Avid Technology (Nasdaq: AVID ) dropped 26% in intraday trading today, after reporting a loss instead of the expected second-quarter profit.
So what: Non-GAAP EPS of -$0.10 was nowhere near the consensus forecast of $0.09, and below the year-ago quarter's -$0.05. Revenue also fell to $161 million, from $162 million. GAAP EPS was -$0.31.
Now what: This was the second earnings miss in two quarters: first quarter non-GAAP EPS was -$0.02 against a consensus estimate of $0.09. The press release offered neither an explanation for the disappointing results nor a plan to improve financial performance. The company hasn't delivered a profitable year since 2005, and the current CEO has been in charge for more than three-and-a-half years. There was nothing in today's news that suggests current management can turn Avid Technologies around.
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