Exhibit 99.1
PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
Three Months Ended September 30, | ||||||||
2003 | 2002 | |||||||
Net sales | $ | 70,927 | $ | 68,574 | ||||
Costs and expenses: | ||||||||
Cost of sales | 37,023 | 30,981 | ||||||
Engineering and product development | 10,550 | 8,263 | ||||||
Sales, marketing, and service | 25,265 | 19,668 | ||||||
General and administrative | 5,979 | 4,810 | ||||||
Amortization of other intangible assets | 2,820 | 3,371 | ||||||
In-process research and development | 2,193 | — | ||||||
Total costs and expenses | 83,830 | 67,093 | ||||||
Operating income (loss) | (12,903 | ) | 1,481 | |||||
Interest and other income, net | 326 | 390 | ||||||
Income (loss) before income taxes and cumulative effect of change in accounting principle | (12,577 | ) | 1,871 | |||||
Income tax expense | 403 | 450 | ||||||
Income (loss) before cumulative effect of change in accounting principle | (12,980 | ) | 1,421 | |||||
Cumulative effect of change in accounting principle | — | (19,291 | ) | |||||
Net income (loss) | $ | (12,980 | ) | $ | (17,870 | ) | ||
Net income (loss) per share: | ||||||||
Basic | $ | (0.20 | ) | $ | (0.30 | ) | ||
Diluted | $ | (0.20 | ) | $ | (0.29 | ) | ||
Shares used to compute net income (loss) per share: | ||||||||
Basic | 65,086 | 59,128 | ||||||
Diluted | 65,086 | 62,018 | ||||||
PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
September 30, 2003 | June 30, 2003 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 62,186 | $ | 62,617 | ||||
Marketable securities | 17,720 | 18,804 | ||||||
Accounts receivable, net | 50,996 | 55,958 | ||||||
Inventories | 43,481 | 38,086 | ||||||
Prepaid expenses and other current assets | 7,146 | 9,197 | ||||||
Total current assets | 181,529 | 184,662 | ||||||
Restricted cash | 16,850 | 16,890 | ||||||
Property and equipment, net | 15,262 | 14,040 | ||||||
Goodwill | 75,668 | 60,632 | ||||||
Other intangible assets, net | 36,147 | 29,341 | ||||||
Other assets | 5,630 | 5,311 | ||||||
$ | 331,086 | $ | 310,876 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 17,688 | $ | 17,146 | ||||
Accrued and other liabilities | 52,175 | 49,489 | ||||||
Deferred revenue | 13,906 | 10,100 | ||||||
Total current liabilities | 83,769 | 76,735 | ||||||
Deferred income taxes | 8,320 | 7,826 | ||||||
Long-term liabilities | 803 | 158 | ||||||
Total liabilities | 92,892 | 84,719 | ||||||
Shareholders’ equity: | ||||||||
Common stock | 360,771 | 337,593 | ||||||
Accumulated deficit | (128,274 | ) | (115,294 | ) | ||||
Accumulated other comprehensive income | 5,697 | 3,858 | ||||||
Total shareholders’ equity | 238,194 | 226,157 | ||||||
$ | 331,086 | $ | 310,876 | |||||