Avid Technology's (NASDAQ:AVID) record third-quarter results are further evidence of the company's leading role in the film industry. For the quarter, it produced revenues of $147.4 million -- a 24% increase over the same quarter a year ago. Applying a healthy 13% net profit margin, it managed to squeeze $19 million worth of net income -- a year-over-year increase of 61%.

What's fueling the growth? It's more like: What is not fueling growth? When you consider the exhaustive list of projects the company's products are involved in, it's no wonder Avid continues to post blockbuster results. "The Sopranos," "Sky Captain and the World of Tomorrow," "The Daily Show With Jon Stewart," the 2004 Olympic Games, and the political film "Fahrenheit 9/11" are a small part of Avid's reach in the digital editing industry.

Avid's editing tools are the product of choice for the video, audio, film, animation, games, and broadcasting markets. And considering the projected 25% growth rate going into 2005, analysts do not see any sign of the company letting up. So is it time to get a piece of this movie magic?

Not so fast. Over the past couple of years its stock has risen a market-average-crushing 500%, and Avid insiders think this is a perfect time to lighten their stake in the company. With fully valued shares and a rush of insider sales, investors will benefit waiting for weakness before opening a position.

Increasing competition from Sony (NYSE:SNE), Apple (NASDAQ:AAPL), Adobe (NASDAQ:ADBE), among others, and it's clear there are many actors looking for a part of this movie magic. However, given its industry standard product, Avid unquestionably has the leading role in this exciting market. Because of its dominance, Avid is a worthy addition to an investor's watch list.

Fool contributor Jeremy MacNealy does not own shares in any of the companies mentioned.