Exhibit 99.2
PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
GAAP | ||||||||
Three Months Ended September, 30, | ||||||||
2004 | 2003 | |||||||
Net sales | $ | 70,542 | $ | 69,343 | ||||
Costs and expenses: | ||||||||
Cost of sales | 39,871 | 38,316 | ||||||
Engineering and product development | 10,115 | 10,550 | ||||||
Sales, marketing, and service | 19,399 | 22,184 | ||||||
General and administrative | 7,076 | 5,979 | ||||||
Amortization of other intangible assets | 1,381 | 2,735 | ||||||
Restructuring costs | 2,435 | — | ||||||
In-process research and development | — | 2,193 | ||||||
Total costs and expenses | 80,277 | 81,957 | ||||||
Operating loss | (9,735 | ) | (12,614 | ) | ||||
Interest and other income, net | 508 | 334 | ||||||
Loss from continuing operations before income taxes | (9,227 | ) | (12,280 | ) | ||||
Income tax expense | 704 | 528 | ||||||
Loss from continuing operations | (9,931 | ) | (12,808 | ) | ||||
Loss from discontinued operations, net of taxes | — | (172 | ) | |||||
Net loss | $ | (9,931 | ) | $ | (12,980 | ) | ||
Loss per share from continuing operations: | ||||||||
Basic and Diluted | $ | (0.14 | ) | $ | (0.20 | ) | ||
Loss per share from discontinued operations: | ||||||||
Basic and Diluted | $ | — | $ | — | ||||
Net loss per share: | ||||||||
Basic and Diluted | $ | (0.14 | ) | $ | (0.20 | ) | ||
Shares used to compute net loss per share: | ||||||||
Basic and Diluted | 69,043 | 65,086 | ||||||
PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
September 30, 2004 | June 30, 2004 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 46,443 | $ | 61,299 | ||||
Marketable securities | 16,903 | 10,955 | ||||||
Accounts receivable, net | 39,672 | 42,168 | ||||||
Inventories | 44,876 | 47,162 | ||||||
Prepaid expenses and other current assets | 6,374 | 8,727 | ||||||
Total current assets | 154,268 | 170,311 | ||||||
Restricted cash | 16,850 | 16,850 | ||||||
Property and equipment, net | 16,031 | 17,223 | ||||||
Goodwill | 73,612 | 73,276 | ||||||
Other intangible assets, net | 15,029 | 16,298 | ||||||
Other assets | 8,205 | 7,789 | ||||||
$ | 283,995 | $ | 301,744 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 12,562 | $ | 18,283 | ||||
Accrued and other liabilities | 50,849 | 56,898 | ||||||
Deferred revenue | 15,825 | 13,909 | ||||||
Total current liabilities | 79,236 | 89,090 | ||||||
Deferred income taxes | 1,786 | 1,972 | ||||||
Total liabilities | 81,022 | 91,062 | ||||||
Shareholders’ equity: | ||||||||
Common stock | 377,215 | 375,550 | ||||||
Accumulated deficit | (179,418 | ) | (169,487 | ) | ||||
Accumulated other comprehensive income | 5,176 | 4,619 | ||||||
Total shareholders’ equity | 202,973 | 210,682 | ||||||
$ | 283,995 | $ | 301,744 | |||||