Exhibit 99.1
PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
March 31, 2004 | June 30, 2003 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 62,043 | $ | 62,617 | ||||
Marketable securities | 17,209 | 18,804 | ||||||
Accounts receivable, net | 46,374 | 55,958 | ||||||
Inventories | 43,823 | 36,775 | ||||||
Prepaid expenses and other current assets | 9,996 | 9,197 | ||||||
Total current assets | 179,445 | 183,351 | ||||||
Restricted cash | 16,850 | 16,890 | ||||||
Property and equipment, net | 17,008 | 15,351 | ||||||
Goodwill | 83,588 | 60,632 | ||||||
Other intangible assets, net | 19,319 | 29,341 | ||||||
Other assets | 7,511 | 5,311 | ||||||
$ | 323,721 | $ | 310,876 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 19,623 | $ | 17,146 | ||||
Accrued and other liabilities | 65,822 | 53,025 | ||||||
Deferred revenue | 14,121 | 6,564 | ||||||
Total current liabilities | 99,566 | 76,735 | ||||||
Deferred income taxes | 3,881 | 7,826 | ||||||
Long-term liabilities | 669 | 158 | ||||||
Total liabilities | 104,116 | 84,719 | ||||||
Shareholders’ equity: | ||||||||
Common stock | 372,419 | 337,593 | ||||||
Accumulated deficit | (158,420 | ) | (115,294 | ) | ||||
Accumulated other comprehensive income | 5,606 | 3,858 | ||||||
Total shareholders’ equity | 219,605 | 226,157 | ||||||
$ | 323,721 | $ | 310,876 | |||||
PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
GAAP | ||||||||
Three Months Ended March 31, | ||||||||
2004 | 2003 | |||||||
Net sales | $ | 93,739 | $ | 88,666 | ||||
Costs and expenses: | ||||||||
Cost of sales | 46,862 | 40,845 | ||||||
Engineering and product development | 11,065 | 9,722 | ||||||
Sales, marketing, and service | 28,407 | 24,679 | ||||||
General and administrative | 5,944 | 4,787 | ||||||
Amortization of other intangible assets | 1,508 | 4,331 | ||||||
In-process research and development | — | 470 | ||||||
Restructuring costs | 320 | — | ||||||
Legal judgment | — | 3,861 | ||||||
Total costs and expenses | 94,106 | 88,695 | ||||||
Operating income (loss) | (367 | ) | (29 | ) | ||||
Interest and other income, net | 923 | 211 | ||||||
Income before income taxes | 556 | 182 | ||||||
Income tax expense | 847 | 808 | ||||||
Net income (loss) | $ | (291 | ) | $ | (626 | ) | ||
Net income (loss) per share: | ||||||||
Basic | $ | (0.00 | ) | $ | (0.01 | ) | ||
Diluted | $ | (0.00 | ) | $ | (0.01 | ) | ||
Shares used to compute net income (loss) per share: | ||||||||
Basic | 68,108 | 62,453 | ||||||
Diluted | 68,108 | 62,453 | ||||||