Clint Eastwood's Million Dollar Baby reeled in the hardware at the latest Oscars. Because Avid Technology (NASDAQ:AVID) played a magical hand in the making of this-award winning film, it seems appropriate that the company would once again report knockout results.

Revenues for its first quarter improved by 30.3% to $166 million. The company showed double-digit growth in both its audio and video units. Video-editing software sales increased 14% compared with the same period a year ago. As the industry continues to pursue a high-definition (HD) standard, Avid is experiencing strength in this sector. However, the greatest growth for the period was in the audio business, which increased revenues by 74%.

The company is doing an excellent job of accelerating sales, even as it keeps its operating profit margins in check. In the first quarter of fiscal 2004, operating margins were 20.7%. For the latest quarter, operating margins were 21.5% -- a 3.9% improvement from a year ago.

Avid also increased its earnings by 34% to $19.7 million. The company reported $0.53 in earnings per share (EPS) -- 20.5% higher than a year ago. The EPS growth trailed the net income growth due to the number of outstanding shares, which increased 10.7% compared with last year's first quarter.

As Avid continues to produce record earnings, its balance sheet stands to benefit. The company increased its cash and marketable securities position by 13.4% to $176.2 million. With virtually no long-term debt, this enterprise has plenty of flexibility to either expand its existing operation or make smart acquisitions.

Since my previous review of Avid, its stock has been cut and edited down to a point where it now trades at a forward price-to-earnings ratio of 16 -- nearly 25% cheaper in just a few short months. For potential investors looking to get their hands on Oscar gold, an initial purchase at around $50 would probably be as close as you're going to get. As this billion-dollar baby continues to show strong growth and solid margins, it may be one stock worth owning.

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