Avid News - Changing things up to improve profitability

Lot of news coming out of Avid / Didi / M-Audio, and it looks like the management team is serious about re-organizing the company.  They got rid of a distraction by selling:

Avid to sell Pinnacle PCTV line to Hauppauge

Multimedia technology company Avid Technology Inc. said Monday it agreed to sell its Pinnacle PCTV product line and related assets to Hauppauge Digital Inc. for an undisclosed sum.
The deal is expected to close before the end of the year.
Avid said it is focusing on software that complements its broader portfolio of video and audio products. The company makes digital editing systems used in film, video, audio, 3D animation, gaming and other industries.
"PCTV is a compelling standalone hardware product and a better fit for Hauppauge, a recognized leader in the TV-viewing hardware market," said Gary Greenfield, Avid chairman and chief executive, in a statement.
Hauppauge makes television receivers for personal computers, among other products.
Shares of Avid rose 34 cents, or 2.5 percent, to $13.90 in morning trading, while shares of Hauppauge rose a penny to $1.01.

The are cutting head count to improve profitability and from what I hear to bring the Avid / Digi / M-Audio together around the management team at Avid (where it should be noted Dave Lebolt is now the CTO for the company . 

Avid Technology Inc. Plans to Cut 410 Jobs
10/24/2008
Avid Technology Inc. is laying off 410 full-time employees - 15% of its workforce - dismissing another 90 contract workers, and selling off its Softimage 3-D game animation software business in a major restructuring.

Avid Technology Inc. Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2008 ; Announces Impairment of Goodwill and Intangible Assets for the Third Quarter of 2008
10/23/2008
Avid Technology Inc. reported earnings results for the third quarter and nine months ended September 30, 2008. The company reported revenue of $217.1 million for the three-month period ended September 30, 2008, compared to $226.8 million for the same period in 2007. GAAP net loss for the quarter was $66.4 million, or $1.80 per share, compared to GAAP net loss of $5.9 million, or $0.14 per share, in the third quarter of 2007. Non-GAAP loss per share was $0.12 for the third quarter of 2008 compared to non-GAAP earnings per diluted share of $0.37 in the third quarter of 2007. Non-GAAP net loss of $4.4 million against net income of $15.2 million for the same period in the last year. Revenue for the nine-month period ended September 30, 2008 was $638.2 million, compared to revenue of $671.1 million for the same period in 2007. GAAP net loss for the first nine months of 2008 was $97.9 million, or $2.59 per share, compared to GAAP net loss of $11.8 million, or $0.29 per share, for the same period in 2007. Non-GAAP loss per share was $0.42 per share for the first nine months of 2008 compared to non-GAAP earnings per diluted share of $0.82 for the first nine months of 2007. Non-GAAP net loss of $16.0 million against net income of $34.0 million for the same period in the last year. The company announced impairment of goodwill and intangible assets of $51,257,000 for the third quarter of 2008.

The sell off of Softimage seems to be a part of the re-focus on their core markets.

Avid Technology Mulls Divesting Softimage 3D Product Line
10/23/2008
Avid Technology Inc., which reported revenues of $217.1 million for the three-month period ended September 30, 2008, compared to $226.8 million for the same period in 2007, also announced the company’s intention to sell Softimage 3D animation product line. As part of the company's business transformation efforts, Avid announced plans to divest the Softimage 3D animation product line. In addition, the company announced a reduction in workforce to better align its cost structure around the core businesses.

All info is from BusinessWeek http://investing.businessweek.com

Please post responses about how you thing this will affect the domination that Digi has in the DAW market or any other thoughts you may have.