Avid shares surge on first profit in 4 years

Reuters News
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Posted: Feb 08, 2012 11:04 AM

(Reuters) - Shares of Avid Technology Inc jumped 25 percent to a six-month high after the maker of digital audio and video editing products reported a quarterly profit for the first time in four years.

The company's gross margins, which rose to 54 percent, were the highest since 2005. Operating expenses fell 7 percent.

A profit of 38 cents a share, excluding items, blew past estimates of 16 cents a share, according to Thomson Reuters I/B/E/S.

The stock, one of the top percentage gainers on the Nasdaq, rose to $12.44 in morning trading. More than 1 million shares had changed hands by 1030 ET -- nearly eight times the 10-day moving average volume.

(Reporting by Monika Shinghal in Bangalore; Editing by Don Sebastian)