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What: Shares of digital media company Avid Technology
So what: Revenue just slightly missed expectations at $166.3 million, but the bottom line really disappointed investors. Analysts expected a non-GAAP profit of $0.09 per share but the company reported a loss of $0.02 per share.
Now what: The poor results were largely due to a lower operating margin which was down from 7% last quarter to 1% this quarter. Management pointed to the fact that this was the first operating profit in the first quarter since 2007 and is the third consecutive quarter of operating profit for the company. Those are positives, but results just aren’t living up to expectations that were set a little higher by investors.
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