UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q/A

   
                                Amendment No. 1
    

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
         EXCHANGE ACT OF 1934

   
                For the quarterly period ended September 30, 1996
    

                                       OR

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

             For the transition period from ________ to ____________

                           Commission File No. 0-24784

                             PINNACLE SYSTEMS, INC.
                             ----------------------
             (Exact name of Registrant as specified in its charter)

       California                                          94-3003809           
- -------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)              


                                                             
   
                             280 N. Bernardo Avenue
                        Mountain View, California 94043
                    ---------------------------------------
                    (Address of principal executive offices)

                                 (415) 526-1600
              ----------------------------------------------------
              (Registrant's telephone number, including area code)
    

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X No
                                      ---  ---

   
The number of shares of common stock  outstanding  as of September  30, 1996 was
7,481,808.
    



PART II - OTHER INFORMATION

Item 6.      Exhibits and Reports on Form 8-K

            (a) Exhibits:

   
                10.19.1*  OEM Agreement between Registrant and Data Translation,
                          Incorporated
                10.19.2*+ Amendment to OEM Agreement between Registrant and Data
                          Translation, Incorporated
                11.1+     Statement of Computation of Net Income Per Share
    

            (b) Reports on Form 8-K.  No  reports  on Form 8-K were filed by the
                Company during the quarter ended September 30, 1996.

- -----------------------

*        Confidential  treatment  has been  requested  with  respect  to certain
         portions of this exhibit.  Omitted  portions have been filed separately
         with the Securities and Exchange Commission.

+        Previously filed.

                                       


                                   SIGNATURES



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                                      PINNACLE SYSTEMS, INC.
                                   
                                   
                                   
   
Date:  November 27, 1996               By:     /s/Mark L. Sanders
                                           -------------------------------------
                                              Mark L. Sanders
                                              President, Chief Executive Officer
                                              and Director
                                   
Date:  November 27, 1996               By:     /s/Arthur D. Chadwick
                                           -------------------------------------
                                              Arthur D. Chadwick
                                              Vice President, Finance and 
                                              Administration and
                                              Chief Financial Officer
    
                                   
                                      
                         

INDEX TO EXHIBITS


                                                                    SEQUENTIALLY
                                                                        NUMBERED
         EXHIBIT                                                            PAGE
- --------------------------------------------------------------------------------

   
10.19.1     OEM Agreement between Registrant and Data                         5
                Translation, Incorporated