<ARTICLE> 5 <CIK> 0000774695 <NAME> PINNACLE SYSTEMS, INC. <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> JUN-30-1996 <PERIOD-START> JUL-01-1995 <PERIOD-END> JUN-30-1996 <EXCHANGE-RATE> 1 <CASH> 27,846,000 <SECURITIES> 33,288,000 <RECEIVABLES> 8,366,000 <ALLOWANCES> 840,000 <INVENTORY> 9,611,000 <CURRENT-ASSETS> 76,700,000 <PP&E> 3,819,000 <DEPRECIATION> 1,615,000 <TOTAL-ASSETS> 84,561,000 <CURRENT-LIABILITIES> 4,363,000 <BONDS> 0 <COMMON> 77,902,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 2,296,000 <TOTAL-LIABILITY-AND-EQUITY> 84,561,000 <SALES> 46,151,000 <TOTAL-REVENUES> 46,151,000 <CGS> 23,854,000 <TOTAL-COSTS> 23,854,000 <OTHER-EXPENSES> 20,224,000 <LOSS-PROVISION> 522,000 <INTEREST-EXPENSE> 9,000 <INCOME-PRETAX> 5,418,000 <INCOME-TAX> 1,734,000 <INCOME-CONTINUING> 3,684,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 3,684,000 <EPS-PRIMARY> 0.48 <EPS-DILUTED> 0.48