BOSTON (AP) — Shares of Avid Technology Inc. tumbled after the company said it was indefinitely postponing a quarterly earnings announcement while it evaluates its accounting.
THE SPARK: Avid Technology had been scheduled to release fourth-quarter earnings on Tuesday and hold a conference call for investors. The Burlington, Mass.-based company said on Monday that it is postponing the announcement but is unable to estimate when its accounting evaluation will be completed.
Avid Technology said it was evaluating "current and historical accounting treatment related to bug fixes, upgrades and enhancements to certain products which the company has provided to certain customers."
The company said it became aware that it needed to examine its accounting during its normal review of financial results for the fourth quarter and 2012.
Avid makes equipment and software for digitally recording music and video. The technology is used to make feature films, music recordings, television shows, live concert tours and news broadcasts.
Analysts surveyed by FactSet expect Avid to post fourth-quarter earnings of 12 cents per share, on average.
SHARE ACTION: Shares of Avid fell 85 cents, or 11 percent, to $6.81 in midday trading. The stock traded at a 52-week high of $11.95 last February and as low as $5.85 in October.