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,  1999,  except as to Note
5(a), which is as of August 2, 1999,  included the related  financial  statement
schedule as of June 30, 1999, and for each of the years in the three-year period
ended June 30,  1999,  included  in the annual  report on Form 10-K for the year
ended June 30, 1999. This financial  statement  schedule is the responsiblity of
the Company's  management.  Our  responsibility is to express an opinion on this
financial statement schedule based on our audits. In our opinion, such 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 herein.

We consent to incorporation  by reference in the  registration  statements (Nos.
33-89706, 333-25697,  333-16999,  333-34759,  333-63759,  333-74071,  333-75117,
333-75935,  333-84739,  and 333-85895) on Forms S-8 and S-3 of Pinnacle  Systems
Inc. of our report dated July 22, 1999,  except as to Note 5(a),  which is as of
August 2, 1999, relating to the consolidated balance sheets of Pinnacle Systems,
Inc. and subsidiaries as of June 30, 1999 and 1998, and the related consolidated
statements of operations,  comprehensive income,  shareholders' equity, and cash
flows for each of the years in the  three-year  period ended June 30, 1999,  and
the related  schedule,  which report appears in the June 30, 1999, annual report
on Form 10-K of Pinnacle Systems, Inc.


                                                                        KMPG LLP

Mountain View, California
September 23, 1999