Avid Under Scrutiny
Shares of Avid Technology Inc. plummeted after the company said it was indefinitely postponing a quarterly earnings announcement while it evaluates its accounting. The law firm Finkelstein Thompson LLP also announced that it is investigating potential claims on behalf of shareholders of Avid Technology, Inc.
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.