Exhibit 99.2
Pinnacle Systems Announces 3Q05 Results | 1 |
PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
(Unaudited, in thousands, except per-share data)
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Net sales | $ | 65,237 | $ | 82,098 | $ | 212,568 | $ | 220,763 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales | 35,802 | 44,517 | 118,206 | 130,180 | ||||||||||||
Engineering and product development | 7,376 | 9,639 | 24,036 | 27,591 | ||||||||||||
Sales, marketing, and service | 18,508 | 21,489 | 55,420 | 61,821 | ||||||||||||
General and administrative | 6,705 | 6,032 | 19,984 | 17,567 | ||||||||||||
Amortization of other intangible assets | 848 | 869 | 2,544 | 3,883 | ||||||||||||
Impairment of goodwill | — | — | 1,310 | 5,950 | ||||||||||||
Legal settlement | — | — | (3,137 | ) | — | |||||||||||
Transaction costs | 2,752 | — | 2,752 | — | ||||||||||||
In-process research and development | — | — | — | 2,193 | ||||||||||||
Restructuring costs (reversal) | (175 | ) | 320 | 5,597 | 3,640 | |||||||||||
Total costs and expenses | 71,816 | 82,866 | 226,712 | 252,825 | ||||||||||||
Operating loss | (6,579 | ) | (768 | ) | (14,144 | ) | (32,062 | ) | ||||||||
Interest paid on legal settlement | — | — | — | (2,050 | ) | |||||||||||
Interest and other income, net | 368 | 891 | 1,276 | 1,515 | ||||||||||||
Income (loss) from continuing operations before income taxes | (6,211 | ) | 123 | (12,868 | ) | (32,597 | ) | |||||||||
Income tax expense | 942 | 1,114 | 2,854 | 2,938 | ||||||||||||
Loss from continuing operations | (7,153 | ) | (991 | ) | (15,722 | ) | (35,535 | ) | ||||||||
Income (loss) from discontinued operations, net of taxes | 6,538 | 699 | (1,683 | ) | (7,591 | ) | ||||||||||
Net loss | $ | (615 | ) | $ | (292 | ) | $ | (17,405 | ) | $ | (43,126 | ) | ||||
Loss per share from continuing operations: | ||||||||||||||||
Basic and Diluted | $ | (0.10 | ) | $ | (0.01 | ) | $ | (0.23 | ) | $ | (0.53 | ) | ||||
Income (loss) per share from discontinued operations: | ||||||||||||||||
Basic and Diluted | $ | 0.09 | $ | 0.01 | $ | (0.02 | ) | $ | (0.11 | ) | ||||||
Net loss per share: | ||||||||||||||||
Basic and Diluted | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.25 | ) | $ | (0.65 | ) | ||||
Shares used to compute net loss per share: | ||||||||||||||||
Basic and Diluted | 69,942 | 68,108 | 69,498 | 66,526 | ||||||||||||
Pinnacle Systems Announces 3Q05 Results | 2 |
PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
March 31, 2005 | June 30, 2004 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 118,922 | $ | 59,059 | ||||
Marketable securities | 14,507 | 10,955 | ||||||
Accounts receivable, net | 30,876 | 37,941 | ||||||
Inventories | 27,876 | 45,762 | ||||||
Prepaid expenses and other current assets | 5,673 | 8,366 | ||||||
Current assets of discontinued operations | — | 10,429 | ||||||
Total current assets | 197,854 | 172,512 | ||||||
Restricted cash | — | 16,850 | ||||||
Property and equipment, net | 12,945 | 15,641 | ||||||
Goodwill | 43,440 | 42,874 | ||||||
Other intangible assets, net | 6,324 | 8,840 | ||||||
Other assets | 7,433 | 7,283 | ||||||
Long-term assets of discontinued operations | — | 39,945 | ||||||
$ | 267,996 | $ | 303,945 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 13,877 | $ | 17,776 | ||||
Accrued and other liabilities | 38,072 | 55,748 | ||||||
Deferred revenue | 13,736 | 12,497 | ||||||
Current liabilities of discontinued operations | — | 5,164 | ||||||
Total current liabilities | 65,685 | 91,185 | ||||||
Long-term liabilities of discontinued operations | — | 2,078 | ||||||
Total liabilities | 65,685 | 93,263 | ||||||
Shareholders’ equity: | ||||||||
Common stock | 380,835 | 375,550 | ||||||
Accumulated deficit | (186,892 | ) | (169,487 | ) | ||||
Accumulated other comprehensive income | 8,368 | 4,619 | ||||||
Total shareholders’ equity | 202,311 | 210,682 | ||||||
$ | 267,996 | $ | 303,945 | |||||