International. The directors of Avid announced a strategic restructuring of the company that aims to focus on the professional post-production segment, in which they have the experience, technical innovation and offers them a greater opportunity for future success.
As part of this new approach, as announced by the company's CEO, Gary Greenfield, Avid will make a divestment in the line of consumer systems, such as audio equipment, including keyboards, controllers, interfaces, speakers and DJ equipment, as well as the video line.
He added that "by streamlining and simplifying operations, we hope to deliver better financial performance and have a closer relationship with our enterprise and professional customers. Our goal continues to be to provide these customers with innovative solutions that allow them to create the most listened to, most viewed and most appreciated products in the world. I'm excited about our future prospects."
The two product lines sold by Avid in 2011 accounted for $91 million of the company's total revenue, which amounted to $677 million. The revenue that the company estimates will obtain from this divestment will reach US$17 million, a figure that is subject to inventory closing adjustments, with a part in deposit.
In addition, as part of the transactions and internal restructuring, the company expects to reduce its staff by 20%, as some will be laid off and others will pass to the purchasing companies, identified as Corel Corporation and inMusic, the latter parent company of Akai Professional, Alesis and Numark, among others.
