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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.
Interested in more info on Avid Technology? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.