Report on Financial Statement Schedule
                       and Consent of Independent Auditors


The Board of Directors and Shareholders
Pinnacle Systems, Inc.:


The audits  referred to in our report dated July 22,  1997,  include the related
consolidated  financial  statement schedule as of June 30, 1997, and for each of
the years in the  three-year  period  ended  June 30,  1997.  This  consolidated
financial statement schedule is the responsibility of the Company's  management.
Our  responsibility  is to express an  opinion  on this  consolidated  financial
statement  schedule  based on our  audits.  In our  opinion,  this  consolidated
financial  statement  schedule,   when  considered  in  relation  to  the  basic
consolidated  financial  statements taken as a whole,  presents  fairly,  in all
material respects the information set forth therein.

We consent to incorporation by reference in the registration statements (Numbers
33-89706,  333-02816,  333-25697 and 333-16999) on Form S-8 of Pinnacle Systems,
Inc. of our reports dated July 22, 1997,  relating to the  consolidated  balance
sheets of Pinnacle Systems,  Inc. and subsidiaries as of June 30, 1997 and 1996,
and the related consolidated statements of operations, shareholders' equity, and
cash flows and related consolidated financial statement schedule for each of the
years in the three-year period ended June 30, 1997, which reports appear in this
June 30, 1997 annual report on Form 10-K of Pinnacle Systems, Inc.


                                           /s/ KPMG PEAT MARWICK LLP


Palo Alto, California
August 28, 1997