Avid is now up to date with its financial reporting obligations and has applied for re-listing with the Nasdaq stock exchange, which it said could take place by the end of the year.

The company this week announced revenue of $124.6m (£77m) for the second quarter of the year. Revenue for the same period last year stood at $141.3m.

Avid chief financial and administrative officer John Frederick told investors “this year-over-year decline is attributable to the pre-2011 revenue burn down and the timing of revenue recognition related to certain transactions that shifted to the third quarter”.

Avid president and chief executive Louis Hernandez said the company had now increased its profitability expectations due to the shift to higher margin products, such as the Avid Media Central Platform, and de-emphasis on lower growth offerings, combined with continued reduction of operating costs.

Avid was de-listed from the Nasdaq after it failed to meet a deadline set by the stock exchange for the restating of its financial statements to amend discrepancies relating to the way that Avid accounted for free software upgrades.