Exhibit 99.1
PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
GAAP | |||||||
Three Months Ended June 30, | |||||||
2004 | 2003 | ||||||
Net sales | $ | 86,490 | $ | 89,339 | |||
Costs and expenses: | |||||||
Cost of sales | 41,276 | 41,709 | |||||
Engineering and product development | 10,896 | 10,935 | |||||
Sales, marketing, and service | 24,956 | 26,049 | |||||
General and administrative | 5,612 | 5,044 | |||||
Amortization of other intangible assets | 1,505 | 3,520 | |||||
Impairment of goodwill | 6,360 | — | |||||
Total costs and expenses | 90,605 | 87,257 | |||||
Operating income (loss) | (4,115 | ) | 2,082 | ||||
Interest and other income, net | 173 | 1,767 | |||||
Income (loss) from continuing operations before income taxes | (3,942 | ) | 3,849 | ||||
Income tax expense | 560 | 393 | |||||
Income (loss) from continuing operations | (4,502 | ) | 3,456 | ||||
Discontinued operations: | |||||||
Income from operations of discontinued business, net of taxes | 256 | — | |||||
Loss on sale of discontinued business, net of taxes | (6,820 | ) | — | ||||
Loss from discontinued operations | (6,564 | ) | — | ||||
Net income (loss) | $ | (11,066 | ) | $ | 3,456 | ||
Income (loss) per share from continuing operations: | |||||||
Basic and Diluted | $ | (0.07 | ) | $ | 0.05 | ||
Loss per share from discontinued operations: | |||||||
Basic and Diluted | $ | (0.09 | ) | $ | — | ||
Net income (loss) per share: | |||||||
Basic and Diluted | $ | (0.16 | ) | $ | 0.05 | ||
Shares used to compute net income (loss) per share: | |||||||
Basic | 68,676 | 63,014 | |||||
Diluted | 68,676 | 66,103 | |||||
PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
June 30, 2004 | June 30, 2003 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 61,299 | $ | 62,617 | ||||
Marketable securities | 10,955 | 18,804 | ||||||
Accounts receivable, net | 42,168 | 55,958 | ||||||
Inventories | 47,162 | 36,775 | ||||||
Prepaid expenses and other current assets | 8,727 | 9,197 | ||||||
Total current assets | 170,311 | 183,351 | ||||||
Restricted cash | 16,850 | 16,890 | ||||||
Property and equipment, net | 17,223 | 15,351 | ||||||
Goodwill | 73,273 | 60,632 | ||||||
Other intangible assets, net | 16,298 | 29,341 | ||||||
Other assets | 7,789 | 5,311 | ||||||
$ | 301,744 | $ | 310,876 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 18,283 | $ | 17,146 | ||||
Accrued and other liabilities | 56,792 | 53,025 | ||||||
Deferred revenue | 13,909 | 6,564 | ||||||
Total current liabilities | 88,984 | 76,735 | ||||||
Deferred income taxes | 1,972 | 7,826 | ||||||
Long-term liabilities | 106 | 158 | ||||||
Total liabilities | 91,062 | 84,719 | ||||||
Shareholders’ equity: | ||||||||
Common stock | 375,550 | 337,593 | ||||||
Accumulated deficit | (169,487 | ) | (115,294 | ) | ||||
Accumulated other comprehensive income | 4,619 | 3,858 | ||||||
Total shareholders’ equity | 210,682 | 226,157 | ||||||
$ | 301,744 | $ | 310,876 | |||||