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To Present at B. Riley & Co. New York Conference
MOUNTAIN VIEW, Calif., August 13, 2003 -- Pinnacle Systems(R), Inc. (Nasdaq: PCLE) today announced that Robert L. Wilson, Senior Vice President of Corporate Development will present at the B. Riley & Co. New York Conference on Thursday, August 14, 2003 from 9:40 a.m. to 10:25 a.m. EST at the Waldorf Astoria in New York, NY. A live audio web cast of Pinnacle Systems' presentation will be available through the following website: http://www.corporate-ir.net/ireye/confLobby.zhtml?ticker=PCLE&item_id=769908 About Pinnacle Systems, Inc. Pinnacle Systems provides broadcasters and consumers with cutting-edge digital media creation, storage, and play-back solutions for use at Home, in the Studio and on the Air. Pinnacle Systems' award winning digital media solutions are in use around the world for broadcast, video and audio editing, DVD and CDR authoring and on the Internet. A recognized industry leader, the company has received eight prestigious Emmy Awards for its technical innovations and carries this commitment throughout all of its product lines. Pinnacle Systems may be reached at +1-650-526-1600 or at www.pinnaclesys.com. NOTE: All trademarks and registered trademarks are the property of their owners. (C) 2003. Pinnacle Systems, Inc.
To Present at Adams, Harkness & Hill Summer Seminar
MOUNTAIN VIEW, Calif., August 5, 2003 -- Pinnacle Systems(R), Inc. today announced that Arthur D. Chadwick, Chief Financial Officer and Robert L. Wilson, Senior Vice President, Corporate Development, will present at the Adams, Harkness & Hill Summer Seminar on Wednesday, August 6, 2003 from 3:30 p.m. to 3:55 p.m. EDT at the Marriott Long Wharf, Boston, MA. A live audio
web cast of Pinnacle Systems' presentation will be available through
the following website: http://www.corporate-ir.net/ireye/confLobby.zhtml?ticker=PCLE&item_id=764320
About Pinnacle Systems, Inc. Pinnacle Systems provides broadcasters and consumers with cutting-edge digital media creation, storage, and play-back solutions for use at Home, in the Studio and on the Air. Pinnacle Systems' award winning digital media solutions are in use around the world for broadcast, video and audio editing, DVD and CDR authoring and on the Internet. A recognized industry leader, the company has received eight prestigious Emmy Awards for its technical innovations and carries this commitment throughout all of its product lines.
Reports Record Sales for Fourth Quarter and Full Fiscal Year 2003
MOUNTAIN VIEW, Calif., July 29, 2003 -- Pinnacle
Systems(R), Inc. (Nasdaq: PCLE) today announced financial results for the
fourth quarter of fiscal 2003, which ended June 30, 2003. Net sales for the
full year of fiscal 2003 were $331,000,000, a 43% increase over net sales of
$231,791,000 in fiscal 2002. Net sales for the fourth quarter of fiscal 2003
were $89,339,000, a 37% increase over net sales of $65,021,000 in the fourth
quarter of last year. GAAP net income for the fourth quarter of fiscal 2003
was $3,456,000 or $0.05 per share compared to a loss of $8,366,000 or $0.14
per share in the fourth quarter of last year.
Pro forma net income for the fourth quarter of fiscal 2003 was $5,895,000
or $0.09 per share. This pro forma net income excludes $3,520,000 in
amortization of acquisition-related intangible assets and includes $1,474,000
pro forma income taxes. By way of comparison, the pro forma net income for
the fourth quarter of fiscal 2002 was $4,455,000, or $0.07 per share, which
excludes $8,903,000 in amortization of acquisition related goodwill and
intangible assets and includes $396,000 in pro forma income taxes. The
reconciliation of the GAAP to non-GAAP measurements for net income and
earnings per share for the fourth quarter of fiscal 2003 are set forth below
with Pinnacle Systems' financial statements.
"We finished the year with a strong fourth quarter," said J. Kim Fennell,
Pinnacle Systems' President and Chief Executive Officer. "Sales were at an
all-time high for the Company, for both the fourth quarter and the full fiscal
year. We were particularly pleased with the strong performance of our
broadcast business where we took orders of advanced IT based systems from over
100 different broadcasters in the quarter. We balanced that with superb
results in our Business and Consumer division increasing sales 67% over the
same quarter last year. We are continuing to see unique benefits from our
strategy to address the digital video needs of customers all the way from
beginners to broadcasters."
Fennell also commented, "We are entering the seasonally slow summer season
for both of our divisions and we will provide updated guidance for fiscal 2004
during our quarterly conference call today."
By division, net sales for the fourth quarter of fiscal 2003 were $37.6
million in the Broadcast and Professional division and $51.8 million in the
Business and Consumer division, an 11% and 67% respective increase over the
same quarter last fiscal year. Sales in the Business and Consumer division
included sales from Steinberg products from the Pinnacle Systems' acquisition
of Steinberg Media Technologies in January of this year. Without the Steinberg
products, sales growth in the Business and Consumer division would have been
46% over the same quarter last year.
Recent Business Highlights:
-- Set a company all-time record high for quarterly and full fiscal year
sales.
-- Bookings in the Broadcast & Professional division were well ahead of
sales during the quarter. Of these bookings approximately $30 million
in orders were for broadcast applications. Over half of these bookings
were for news applications including editing, graphics and servers.
-- Announced the acquisition of the Dazzle digital home video business
from SCM Microsystems, and closed the transaction on July 25, 2003.
-- Announced the agreement to acquire a majority interest in Jungle KK and
closed the transaction on July 1, 2003.
-- Pinnacle Systems Studio(R) version 8 movie making software was honored
for the second year in a row by PC World with the World Class Award for
best video editing software.
-- Commenced shipment of Edition(TM) 5.0, an editing solution targeted at
the sub $1000 professional market.
-- Commenced shipments of Studio MovieBox DV(TM) and Studio MovieBox
USB(TM), two innovative new products that let consumers easily connect
almost any camcorder to their PCs (without having to install a PCI
card) and edit their home movies.
-- Commenced shipments of Pinnacle Liquid chrome(TM), a powerful editing
solution targeted at the core of the post production marketplace with a
total solution price of below $25,000.
-- Launched a number of innovative broadcast solutions at the NAB show in
April 2003 focusing on improving workflow for content delivery, news,
sports and live graphics, in addition to our expanded family of our
Palladium networked storage systems.
Pinnacle Systems will host an audio web-cast at 2:00 p.m. (Pacific Time)
on July 29, 2003, which can be heard live at www.pinnaclesys.com.
Additionally, a replay of the conference call will be available at
www.pinnaclesys.com for two weeks following the call. Thereafter, a transcript
of the conference call will be available under the "Investor Relations"
section of our website at
http://www.pinnaclesys.com/aboutus/investorrelation.asp?Langue_ID=7information
and will be available until July 29, 2004.
Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements presented in
accordance with GAAP, Pinnacle Systems uses non-GAAP measures of pro forma net
income and pro forma earnings per share, which are adjusted from our GAAP
results to exclude certain expenses. These non-GAAP adjustments are provided
to enhance the user's overall understanding of our current financial
performance and our prospects for the future. We believe the non-GAAP results
provide useful information to both management and investors by excluding
certain expenses that we believe are not indicative of our core operating
results. The non-GAAP measures are included to provide investors and
management with an alternative method for assessing Pinnacle Systems'
operating results in a manner that is focused on the performance of Pinnacle
Systems' ongoing operations and to provide a more consistent basis for
comparison between quarters. Further, these non-GAAP results are one of the
primary indicators management uses for planning and forecasting in future
periods. In addition, since we have historically reported non-GAAP results to
the investment community, we believe the inclusion of non-GAAP numbers
provides consistency in our financial reporting. The presentation of this
additional information should not be considered in isolation or as a
substitute for results prepared in accordance with accounting principles
generally accepted in the United States.
About Pinnacle Systems, Inc.
Pinnacle Systems provides broadcasters and consumers with cutting-edge
digital media creation, storage, and play-back solutions for use at Home, in
the Studio and on the Air. Pinnacle Systems' award winning digital media
solutions are in use around the world for broadcast, video and audio editing,
DVD and CDR authoring and on the Internet. A recognized industry leader, the
company has received eight prestigious Emmy Awards for its technical
innovations and carries this commitment throughout all of its product lines.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks
and uncertainties within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, including
statements regarding Pinnacle Systems' growth and financial performance during
the fourth quarter of fiscal 2003 relative to the economic environment and the
strength of Pinnacle Systems' strategy of focusing on meeting the rapidly
expanding and diverse demand for digital video solutions. Forward-looking
statements contained in this news release relating to expectations about
future events or results are based upon information available to the Company
as of the date hereof. Readers are cautioned that these forward-looking
statements are only predictions and are subject to risks, uncertainties and
assumptions that are difficult to predict. As a result, Pinnacle Systems'
actual results may differ materially and adversely from those expressed in the
forward-looking statements. Factors that may cause such a difference include,
but are not limited to, risks related to the business climate and financial
performance for both the Broadcast and Professional and Business and Consumer
divisions, any deterioration in the general economic conditions or
specifically in the markets into which Pinnacle Systems sells it products, any
new competition or new competitive products in the broadcast, professional,
business or consumer markets, failure to manage growth and successfully
integrate recently acquired businesses and future acquisitions, accuracy or
inaccuracy of forecasts regarding inventory and sales demand, failure to keep
pace with technological developments in the rapidly changing video industry,
and any future impairment charges resulting from an impairment of our goodwill
and intangible assets. All information set forth in this release and its
attachments is made as of July 29th, 2003, and Pinnacle Systems undertakes no
duty to update this information. These and other factors that could affect
Pinnacle Systems' business and financial results are detailed in the Company's
periodic reports filed with the Securities and Exchange Commission, including,
but not limited to, its Annual Report on Form 10-K for the fiscal year ended
June 30, 2002, including, but not limited to, under the caption "Management's
Discussion and Analysis of Financial Condition and Results of Operations,"
which are on file with the Securities and Exchange Commission (the "SEC") and
available at the SEC's website at www.sec.gov. Pinnacle Systems undertakes no
obligation to revise or update publicly any forward-looking statements for any
reason.
NOTE: All trademarks and registered trademarks are the property of their
owners.
Scheduled to Release Fourth Quarter Fiscal 2003 Results
MOUNTAIN VIEW, Calif., July 7, 2003 -- Pinnacle
Systems(R), Inc. (Nasdaq: PCLE) today announced that it will be releasing
fourth quarter fiscal 2003 results (quarter ending June 30, 2003) on Tuesday,
July 29, 2003 after the close of market.
A financial conference call will follow the earnings release and will
begin at 2:00 p.m. PDT on July 29, 2003. A live audio webcast of the
conference call will be available online at www.pinnaclesys.com. For anyone
who misses the live call, a replay will be available on Pinnacle Systems
website for the following two weeks.
About Pinnacle Systems, Inc.
Pinnacle Systems provides broadcasters and consumers with cutting-edge
digital media creation, storage, and play-back solutions for use at Home, in
the Studio and on the Air. Pinnacle Systems' award winning digital media
solutions are in use around the world for broadcast, video editing, DVD and
CDR authoring, and the Internet. A recognized industry leader, the company has
received eight prestigious Emmy Awards for its technical innovations and
carries this commitment throughout all of its product lines.
NOTE: All trademarks and registered trademarks are the property of their
respective owners.
Extends Leadership Position by Acquiring Video Editing Business
MOUNTAIN VIEW, Calif., June 30, 2003 --
Pinnacle Systems(R), Inc. (Nasdaq: PCLE) announced today that it has entered
into a definitive agreement to acquire the Dazzle home video editing business
from SCM Microsystems (Nasdaq: SCMM; Prime Standard: SMY), a leading provider
of digital media and video solutions. The companies expect to close the
transaction in July 2003 and have agreed on a total purchase price of
approximately $21.5 million of Pinnacle Systems common stock. Pinnacle will
acquire selected assets and liabilities, including all product rights,
inventory, intellectual property, trade names and other rights related to the
business. Pinnacle will account for this transaction as a purchase during the
quarter in which the transaction closes, currently anticipated to be the first
quarter of fiscal 2004 (quarter ending September 30, 2003). The transaction is
expected to be slightly accretive in fiscal 2004 on a non GAAP* (pro-forma)
basis.
J. Kim Fennell, president and CEO at Pinnacle Systems said, "This is a
great move for Pinnacle that allows us to further extend our market share lead
in an exciting market. Combining Pinnacle's industry-leading Studio video
editing products with Dazzle's brand gives us a strong position that lets us
bring a wider variety of products to our customers and be the obvious choice
for home video editing."
Robert Schneider, CEO of SCM Microsystems commented, "We are happy to have
found a good home for the Dazzle home video editing business. Combining Dazzle
and Pinnacle's product line will benefit all customers and helps ensure
continued development for new digital video solutions."
About Dazzle Digital Video Products
Dazzle's home video editing products have been designed to capture, edit
and share digital video for use with both analog and digital camcorders. The
Dazzle family of innovative products includes the highly successful DVC Series
and Hollywood Bridge Series. Pinnacle plans to continue to sell and support
the Dazzle consumer video products through its worldwide network of retailers
and resellers.
About Pinnacle Systems, Inc.
Pinnacle Systems provides broadcasters and consumers with cutting-edge
digital media creation, storage, and play-back solutions for use at Home, at
Work and on the Air. Pinnacle Systems' award winning digital media solutions
are in use around the world for broadcast, cable and satellite television,
video editing, DVD and CDR authoring and on the Internet. A recognized
industry leader, the company has received eight prestigious Emmy Awards for
its technical innovations and carries this commitment throughout all of its
product lines.
* Pinnacle Systems will provide a reconciliation between GAAP and non GAAP
financial results when it discloses the Company's financial performance for
the quarter in which this transaction closes.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks
and uncertainties within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, including
statements regarding the benefits to customers of combining the Dazzle product
line with Pinnacle's, the expected accretive nature of transaction on a non
GAAP basis, the employment offers Pinnacle intends to make to certain
individuals within the acquired business, the potential for continued
development of new digital video solutions as a result of combining the Dazzle
product line with Pinnacle's and Pinnacle's plans to continue to sell and
support the Dazzle products. Forward-looking statements contained in this news
release relating to expectations about future events or results are based upon
information available to Pinnacle Systems as of the date hereof. Readers are
cautioned that these forward-looking statements are only predictions and are
subject to risks, uncertainties and assumptions that are difficult to predict.
As a result, Pinnacle Systems' actual results may differ materially and
adversely those expressed in the forward-looking statements. Factors that may
cause such a difference include, but are not limited to, risks related to
Pinnacle's ability to successfully integrate the Dazzle home video editing
business into its existing business, the synergies between the Dazzle home
video editing business and Pinnacle Systems, the business climate and
financial performance for both the Broadcast and Professional and Business and
Consumer divisions, any deterioration in the general economic conditions or
specifically in the markets into which Pinnacle Systems sells it products,
including the new Dazzle products, any new competition or new competitive
products in the broadcast, professional, business or consumer markets,
Pinnacle's ability to sell and support the acquired Dazzle products and to
integrate those current Dazzle employees it hires and Pinnacle's ability to
protect its intellectual property rights, including these rights acquired in
connection with the Dazzle acquisition. All information set forth in this
release and its attachments is made as of June 30, 2003. These and other
factors that could affect Pinnacle Systems' business and financial results are
detailed in Pinnacle Systems' periodic reports filed with the Securities and
Exchange Commission, including, but not limited to, its Annual Report on Form
10-K for the fiscal year ended June 30, 2002, including, but not limited to,
under the caption "Management's Discussion and Analysis of Financial Condition
and Results of Operations," which are on file with the Securities and Exchange
Commission (the "SEC") and available at the SECs website atwww.sec.gov.
Pinnacle Systems undertakes no obligation to revise or update publicly any
forward-looking statements for any reason.
NOTE: All trademarks and registered trademarks are the property of their
owners.
Makes Strategic Investment In Japan
MOUNTAIN VIEW, Calif., June 5, 2003 --
Pinnacle Systems(R), Inc. (Nasdaq: PCLE) announced today that it has entered
into an agreement to purchase a majority interest in Jungle KK, a privately
held software re-publisher based in Tokyo, Japan. Pinnacle's investment will
be approximately $4.0 million consisting of a combination of cash and stock.
The investment deal is expected to close on July 1, 2003.
"A key element of our global success has been having outstanding local
presence in the markets we serve. We believe that teaming up with a successful
consumer software company like Jungle is the best path towards accelerating
growth of Pinnacle's consumer products in Japan," said J. Kim Fennell,
President and CEO of Pinnacle Systems. "We are very pleased to be leveraging
Jungle's proven marketing and distribution strengths to provide our industry
leading digital video and audio technology to meet the needs of the huge
Japanese consumer market," Fennell added.
Pinnacle Systems plans to offer Jungle's products and Pinnacle's consumer
video product line, the award-winning Studio family, the Pinnacle Instant
family, the PCTV line as well as consumer audio products like MyMP3 Pro and
Clean to offer extensive video technology to the Japanese market. Jungle KK
will manage the distribution and sales of these consumer products.
"Jungle is pleased to be joining forces with Pinnacle Systems. Our
customers and products will benefit greatly from the combined resources of the
two companies. We look forward to integrating our products with Pinnacle's
world-class suite of consumer video and audio technology," said Akiko Takata,
President of Jungle.
Pinnacle has developed a substantial broadcast and professional business
in Japan since the establishment of the Pinnacle KK office in 1999. Pinnacle
KK remains responsible for marketing and distributing all of Pinnacle's
broadcast and professional solutions.
About Jungle
Jungle KK is a privately held distribution company in Japan focusing on
consumer software products. The company was established in January 2000 and
has quickly grown to be one of the top ten distributors of retail software
products in Japan, now distributing over 40 top-selling software products.
About Pinnacle Systems, Inc.
Pinnacle Systems provides broadcasters and consumers with cutting-edge
digital media creation, storage, and play-back solutions for use at Home, at
Work and on the Air. Pinnacle Systems' award winning digital media solutions
are in use around the world for broadcast, cable and satellite television,
video editing, DVD and CDR authoring and on the Internet. A recognized
industry leader, the company has received eight prestigious Emmy Awards for
its technical innovations and carries this commitment throughout all of its
product lines.
NOTE: All trademarks and registered trademarks are the property of their
owners.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks
and uncertainties within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, including
statements regarding Pinnacle Systems' strategy to deliver consumer digital
media products to the consumer market in Japan. Forward-looking statements
contained in this news release relating to expectations about future events or
results are based upon information available to Pinnacle Systems as of the
date hereof. Readers are cautioned that these forward-looking statements are
only predictions and are subject to risks, uncertainties and assumptions that
are difficult to predict. As a result, Pinnacle Systems' actual results may
differ materially and adversely those expressed in the forward-looking
statements. Factors that may cause such a difference include, but are not
limited to, risks related to the business climate and financial performance
for both the Broadcast and Professional and Business and Consumer divisions,
any deterioration in the general economic conditions or specifically in the
markets into which Pinnacle Systems sells it products, any new competition or
new competitive products in the broadcast, professional, business or consumer
markets, and any future impairment charges resulting from an impairment of our
goodwill and intangible assets. All information set forth in this release and
its attachments is made as of June 3, 2003, and Pinnacle Systems undertakes no
duty to update this information. These and other factors that could affect
Pinnacle Systems' business and financial results are detailed in Pinnacle
Systems' periodic reports filed with the Securities and Exchange Commission,
including, but not limited to, its Annual Report on Form 10-K for the fiscal
year ended June 30, 2002, including, but not limited to, under the caption
"Management's Discussion and Analysis of Financial Condition and Results of
Operations," which are on file with the Securities and Exchange Commission
(the "SEC") and available at the SEC's website at www.sec.gov. Pinnacle Systems undertakes no
obligation to revise or update publicly any forward-looking statements for any
reason.
To Present at JP Morgan Technology & Telecom Conference
MOUNTAIN VIEW, Calif., May 6, 2003 --
Pinnacle Systems, Inc. (Nasdaq: PCLE) today announced that J. Kim Fennell,
President and CEO as well as Arthur D. Chadwick, CFO at Pinnacle Systems will
be presenting at the 31st Annual Technology & Telecom Conference hosted by JP
Morgan at the Westin St. Francis Hotel, San Francisco, California on May 7 at
1:30 p.m. Pacific Time.
A live audio web cast of Pinnacle Systems' presentation will be available
through the following website: http://www.mapdigital.com/jpmorgan/techtelecom03/directlinks/go.php?p=pinnacle_systems
About Pinnacle Systems, Inc.
Pinnacle Systems provides broadcasters and consumers with cutting-edge
digital media creation, storage, and play-back solutions for use at Home, in
the Studio and on the Air. Pinnacle Systems' award winning digital media
solutions are in use around the world for broadcast, video and audio editing,
DVD and CDR authoring and on the Internet. A recognized industry leader,
Pinnacle Systems has received eight prestigious Emmy Awards for its technical
innovations and carries this commitment throughout all of its product lines.
NOTE: All trademarks and registered trademarks are the property of their
owners.
Reports Record Sales for Third Quarter Fiscal 2003
MOUNTAIN VIEW, Calif., April 22, 2003 -- Pinnacle SystemsŪ, Inc. (Nasdaq: PCLE) today announced financial results for the third quarter of fiscal 2003, which ended March 31, 2003. Net sales for the third quarter were $88,666,000, a 46% increase over net sales of $60,670,000 in the third quarter of last fiscal year. GAAP net income for the third quarter was a loss of $626,000 or $0.01 per share. In addition, Pinnacle Systems ended the quarter with $101 million in cash and marketable securities.
Pro forma net income for the third quarter of fiscal 2003 was $7,075,000 or $0.11 per share. The pro forma net income reported for the third quarter of fiscal 2003 excludes $4,331,000 in amortization of acquisition-related intangible assets, $3,861,000 in expenses related to the final judgment against Pinnacle Systems in the Athletech lawsuit, and $470,000 in in-process research and development expenses related to the acquisition of Steinberg Media Technologies in January 2003, and uses a pro forma income tax rate of 20%. By way of comparison, the pro forma net income reported for the third quarter of fiscal 2002 in the attached financials excludes $9,158,000 in amortization of acquisition related goodwill and intangible assets and assumes a zero percent pro forma tax rate. The reconciliation of the GAAP to non-GAAP measurements for net income for the third quarter of fiscal 2003 are set forth below following Pinnacle Systems' financial statements.
J. Kim Fennell, Pinnacle Systems' President and Chief Executive Officer, commented, "We are delighted with the outstanding financial performance during the quarter. Sales were at an all-time high for the Company. Profitability was in line with our business model objectives with operating margins at ten percent of sales. Both of our divisions turned in solid growth and profits during the quarter, with sales in our Business and Consumer division being particularly strong, increasing 81% over the same quarter last year. We believe our extraordinary growth and excellent financial performance demonstrates that we executed well in a difficult economic environment. It further validates the power of our strategy of focusing on meeting the rapidly expanding demand for digital video solutions from beginners to broadcasters."
By division, net sales for the third quarter of fiscal 2003 were $35.6 million in the Broadcast and Professional division and $53.1 million in the Business and Consumer division, a 14% and 81% respective increase over the same quarter last fiscal year. Sales in the Business and Consumer division included sales from Steinberg products from Pinnacle Systems' acquisition of Steinberg Media Technologies in January of this year. Without the Steinberg products, sales growth in the Business and Consumer division would have been 58% over the same quarter last year. Gross margins were 58.7% in the Broadcast and Professional division and 50.8% in the Business and Consumer division. Blended gross margins for the third quarter were 53.9%.
Recent Business Highlights:
-- Set another all-time record high for quarterly sales of Business and
Consumer products following on from the momentum of the record setting
December holiday quarter.
-- Grew Broadcast and Professional revenues 14% over the same quarter last
year in spite of uncertainty caused by the war in Iraq.
-- Acquired Steinberg Media Technologies AG on January 3, 2003, adding
specialized digital audio technology and software products to enhance
Pinnacle Systems' suite of solutions. This acquisition significantly
expands our target markets as we estimate that more than 1 million
Steinberg audio solutions have been delivered to customers world-wide.
-- Entered another new consumer market segment with initial shipments of
our Instant family of DVD and CD burning products.
-- Announced Edition 5.0, an editing solution targeted at the sub $1000
professional market. Edition 5.0 has already amassed a large number of
industry accolades around the globe.
-- Announced Pinnacle Liquid chrome, a powerful editing solution targeted
at the core of the post production marketplace with a total solution
price of below $25,000.
-- Announced a strong cadre of new products at the Cebit show in
March 2003, including: Pinnacle Studio MovieBox, Pinnacle MyMP3 Pro and
Pinnacle Instant CD/DVD.
-- Launched a number of innovative broadcast solutions at the recent NAB
show focusing on improving workflows for content delivery, news and
sports, live graphics and editing. Highlights included integration of
news production and graphics, "free HD" for content servers,
integration of editing with servers, extensions of Palladium storage
systems and low cost news editing solutions.
-- Announced an important technology and marketing alliance with Sony
Electronics focusing on the broadcast marketplace.
-- Ranked 82nd in the Silicon Valley 150, listing the 150 top public
companies in Silicon Valley by revenue in last four quarters, moving up
seven places since last year's rankings.
Pinnacle Systems will host an audio web-cast at 2:00 p.m. (Pacific Time) on April 22, 2003, which can be heard live at www.pinnaclesys.com Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements presented in accordance with GAAP, Pinnacle Systems uses non-GAAP measures of pro forma net income and pro forma earnings per share, which are adjusted from our GAAP results to exclude certain expenses. These non-GAAP adjustments are provided to enhance the user's overall understanding of our current financial performance and our prospects for the future. We believe the non-GAAP results provide useful information to both management and investors by excluding certain expenses that we believe are not indicative of our core operating results. These non-GAAP measures are included to provide investors and management with an alternative method for assessing Pinnacle Systems' operating results in a manner that is focused on the performance of Pinnacle Systems' ongoing operations and to provide a more consistent basis for comparison between quarters. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting in future periods. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with accounting principles generally accepted in the United States.
About Pinnacle Systems, Inc.
Pinnacle Systems provides broadcasters and consumers with cutting-edge digital media creation, storage, and play-back solutions for use at Home, in the Studio and on the Air. Pinnacle Systems' award winning digital media solutions are in use around the world for broadcast, video and audio editing, DVD and CDR authoring and on the Internet. A recognized industry leader, Pinnacle Systems has received eight prestigious Emmy Awards for its technical innovations and carries this commitment throughout all of its product lines. Pinnacle Systems may be reached at 650-526-1600 or at www.pinnaclesys.com.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding Pinnacle Systems' growth and financial performance during the third quarter of fiscal 2003 relative to the economic environment and the strength of Pinnacle Systems' strategy of focusing on meeting the rapidly expanding and diverse demand for digital video solutions. Forward-looking statements contained in this news release relating to expectations about future events or results are based upon information available to Pinnacle Systems as of the date hereof. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. As a result, Pinnacle Systems' actual results may differ materially and adversely those expressed in the forward-looking statements. Factors that may cause such a difference include, but are not limited to, risks related to the business climate and financial performance for both the Broadcast and Professional and Business and Consumer divisions, any deterioration in the general economic conditions or specifically in the markets into which Pinnacle Systems sells it products, any new competition or new competitive products in the broadcast, professional, business or consumer markets, and any future impairment charges resulting from an impairment of our goodwill and intangible assets. All information set forth in this release and its attachments is made as of April 22, 2003, and Pinnacle Systems undertakes no duty to update this information. These and other factors that could affect Pinnacle Systems' business and financial results are detailed in Pinnacle Systems' periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K for the fiscal year ended June 30, 2002, including, but not limited to, under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations," which are on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov NOTE: All trademarks and registered trademarks are the property of their owners.
To Release Third Quarter Fiscal 2003 Results on April 22, 2003
MOUNTAIN VIEW, Calif., April 10, 2003 -- Pinnacle Systems, Inc. (Nasdaq: PCLE) today announced that it will be releasing third quarter fiscal 2003 results (quarter ending March 31, 2003) on Tuesday, April 22, 2003 after the close of market.
A financial conference call will follow the earnings release and will begin at 2:00 p.m. PDT on April 22, 2003. A live audio webcast of the conference call will be available online at www.pinnaclesys.com About Pinnacle Systems, Inc.
Pinnacle Systems provides broadcasters and consumers with cutting-edge digital media creation, storage, and play-back solutions for use at Home, in the Studio and on the Air. Pinnacle Systems' award winning digital media solutions are in use around the world for broadcast, video editing, DVD and CDR authoring, and the Internet. A recognized industry leader, the company has received eight prestigious Emmy Awards for its technical innovations and carries this commitment throughout all of its product lines. Pinnacle Systems may be reached at 650-526-1600 or at www.pinnaclesys.com.
NOTE: All trademarks and registered trademarks are the property of their respective owners.
To Present at Roth Capital Growth Stock Conference
MOUNTAIN VIEW, Calif., March 17, 2003 -- Pinnacle Systems, Inc. (Nasdaq: PCLE) today announced that Art Chadwick, Vice President of Finance and CFO will be presenting at the 15th Annual Roth Capital Growth Stock Conference at the St. Regis Monarch Resort & Spa in Dana Point, California on March 17, 2003 at 12:30 PM Pacific Standard Time. You may view a live webcast at: http://www.pinnaclesys.com/rothwebcast.
About Pinnacle Systems, Inc.
Pinnacle Systems provides broadcasters and consumers with cutting-edge digital media creation, storage, and play-back solutions for use at Home, in the Studio and on the Air. Pinnacle Systems' award winning digital media solutions are in use around the world for broadcast, video editing, DVD and CDR authoring and on the Internet. A recognized industry leader, the company has received eight prestigious Emmy Awards for its technical innovations and carries this commitment throughout all of its product lines.
All trademarks are the property of their respective owners, copyright 2002-2003, Pinnacle Systems.
To Present at B. Riley & Company Investor Conference
MOUNTAIN VIEW, Calif., March 13, 2003 --
Pinnacle Systems, Inc. (NASDAQ:PCLE) today announced that Art Chadwick, Vice
President of Finance and CFO will be presenting at the 4th Annual B. Riley &
Company Investor Conference at the Marriott Hotel in Los Angeles, California
on March 13, 2003 at 3:55 PM Eastern Standard Time. You may view a live
webcast at: http://www.pinnaclesys.com/brileywebcast .
About Pinnacle Systems, Inc.
All trademarks are the property of their respective owners.
To Open the NASDAQ Stock Market
MOUNTAIN VIEW, Calif. and NEW YORK, March 5, 2003 --
Pinnacle Systems, Inc. (NASDAQ:PCLE) today announced that J. Kim Fennell,
president and chief executive officer of the company, Art Chadwick, Vice
President of Finance and CFO and other Pinnacle executives will open The
NASDAQ Stock Market on Thursday March 6, at 9.30 a.m. EST at the NASDAQ
MarketSite in Times Square, New York City. The market open is expected to be
aired live via satellite by a number of major financial broadcast networks.
"It's an honor for Pinnacle to be asked to open the NASDAQ," says Fennell.
"Pinnacle has been listed on NASDAQ for over eight years. Access to this
important capital market has enabled us to grow significantly as our team has
driven for a leadership position in the digital video marketplace. We
appreciate the recognition we're receiving today for that accomplishment and
are enthusiastic about our prospects for the future."
Since Pinnacle Systems' IPO in November 1994, the stock has appreciated
four fold and the company's revenues have grown more than 25 times. Having
received many industry awards since listing on the NASDAQ, including several
prestigious Emmy awards for technical innovation, Pinnacle Systems is now a
recognized leader in providing video solutions for the home, in the studio and
on the air.
About NASDAQ
About Pinnacle Systems, Inc.
All trademarks and registered trademarks are the property of their
owners.
This press release contains forward-looking statements that involve risks
and uncertainties within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934 concerning
Pinnacle's strategic and operational plans. Actual results may differ
materially from the forward-looking statements due to certain risks, including
among others: general economic conditions, including business conditions in
the specific markets for Pinnacle's products; the difficulty of keeping
expense growth at modest levels while increasing revenues; the failure to
reduce costs or improve operating efficiencies; increased competition; and
lack of success in timely development, production, and acceptance of new
products. All information set forth in this release and its attachments is
made as of March 6, 2003, and the Company undertakes no duty to update this
information. More information about potential factors that could affect the
Company's business and financial results is included in the Company's Annual
Report on Form 10-K for the fiscal year ended June 30, 2002, including
(without limitation) under the caption "Management's Discussion and Analysis
of Financial Condition and Results of Operations," which are on file with the
Securities and Exchange Commission (the "SEC").
To Present at Raymond James Conference
MOUNTAIN VIEW, Calif., March 5, 2003 --
Pinnacle Systems, Inc. (NASDAQ:PCLE) today announced that Bob Wilson, Senior
Vice President will be presenting at the 24th Annual Institutional Investors
Conference hosted by Raymond James & Associates, Inc. at the Hyatt Regency
Grand Cypress, Orlando, Florida on March 5, 2003 at 8:40 a.m. Eastern Standard
Time.
About Pinnacle Systems, Inc.
Notified of Verdict in Athle-Tech Lawsuit
MOUNTAIN VIEW, Calif., February 14, 2003 --
Pinnacle Systems, Inc. (NASDAQ:PCLE), announced today that a Florida jury has
rendered a verdict against the Company regarding litigation arising from a
dispute that originated at Montage Group Ltd. and DES (Digital Editing
Services, Inc.) prior to their acquisition by Pinnacle Systems in fiscal
2000.
The jury rendered a verdict on several counts, and the Company is awaiting
a final judgment to be entered by the court. The total judgment could be as
high as $13.7 million (exclusive of prejudgment interest). The Company expects
a final judgment to be rendered within the next few weeks. Once final judgment
is entered, the Company will evaluate its appellate rights.
Pinnacle Systems has included an $11.3 million charge related to this
litigation in the financial results for the quarter ended December 31, 2002.
This charge was not included in the December quarter financial results issued
on Jan 21, 2003 because the trial had not yet begun and any potential award
was not yet probable and estimable at the time. Since the jury verdict was
rendered prior to the filing of the Company's Form 10-Q and since the verdict
now makes a damages award both probable and estimable, that estimate must be
included in those quarterly results. The final December quarter results have
been included in the Company's Form 10-Q, which was filed with the Securities
and Exchange Commission today.
The Company believes it is entitled, pursuant to its acquisition
agreements with Montage and DES, to indemnification from certain former
shareholders of Montage and DES for all or at least a portion of the damages
that may be assessed against the Company in the Athle-Tech Claim. Pinnacle
Systems intends to seek indemnification from those former shareholders.
Although the Company believes it is entitled to indemnification for all or at
least a portion of the damages, there can be no assurance that it will recover
all or a portion of these damages.
About Pinnacle Systems, Inc.
Safe Harbor Statement
Reports Record Sales and Net Income for Second Quarter Fiscal 2003
MOUNTAIN VIEW, Calif., January 21, 2003 --
Pinnacle Systems, Inc. (NASDAQ:PCLE) today announced financial results for
the second quarter of fiscal 2003, which ended December 31, 2002. Net sales
for the second quarter were $84,501,000, a 43% increase over net sales of
$59,132,000 in the second quarter of last fiscal year. Net income for the
second quarter, including acquisition-related amortization charges was
$4,479,000 or $0.07 per share. Pro forma net income(*) for the second quarter
was $7,566,000 or $0.12 per share. In addition, the Company ended the quarter
with $108.8 million in cash and marketable securities.
J. Kim Fennell, Pinnacle Systems' President and Chief Executive Officer,
commented, "We are extremely pleased with our outstanding financial
performance during the quarter, particularly in light of a difficult economic
climate. Sales for the quarter were an all-time high for the Company and
exceeded the previous record by 20%. Sales in our Business and Consumer
division were particularly strong this holiday quarter having increased 49%
sequentially and 69% over the same quarter last year. We believe this strong
performance is a result of having cutting-edge technology that we are able to
leverage across all of our businesses, and from our focus on customers and
business fundamentals."
By division, net sales for the second quarter were $34.5 million in the
Broadcast and Professional division and $50.0 million in the Business and
Consumer division, a 17% and 69% respective increase over the same quarter
last fiscal year. Gross margins were 59.9% in the Broadcast and Professional
division and 50.8% in the Business and Consumer division. Blended gross
margins for the second quarter were 54.3%, an increase of almost five margin
points over the same quarter last year.
Recent Business Highlights:
The Company will host an audio web-cast at 2:00 p.m. (Pacific Time) on
January 21, 2003, which can be heard live at www.pinnaclesys.com, and will be
available for the following two weeks.
* The pro forma net income reported for the second quarter excludes
$3,379,000 in amortization of acquisition-related intangible assets and
assumes a 20% pro forma income tax rate. The pro forma net income information
is presented for informational purposes only, as an aid to understanding the
Company's operating results. This pro forma information differs from
information prepared in accordance with generally accepted accounting
principles and should not be considered a substitute for the historical
financial information presented in accordance with GAAP. The pro forma tax
rate is used for comparison purposes only. The pro forma measures used by the
Company may be different from pro forma measures used by other companies.
About Pinnacle Systems, Inc.
This press release contains forward-looking statements that involve risk
and uncertainties within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934 about the
Company's results for the second quarter of fiscal 2003. Actual results may
differ materially from the forward-looking statements due to certain risks set
forth below. Though the business climate and financial performance for both
the Broadcast and Professional and Business and Consumer divisions improved
throughout fiscal 2002 and continued to improve during the first half of
fiscal 2003, there can be no assurance that such improvement will continue
into future quarters. Any slow down in the economy, or any slow down in the
markets into which Pinnacle Systems sells it products, could negatively impact
future results. New competition or new competitive products in the broadcast,
professional, business or consumer markets could impact the Company's future
business. Though the Company will no longer amortize goodwill for any of its
past or potential future acquisitions as a result of adopting SFAS No. 142, we
will evaluate, on an annual basis or whenever significant changes occur in our
business, whether our goodwill and other intangible assets have been impaired,
and will record an impairment charge if they have. All information set forth
in this release and its attachments is made as of January 21st, 2003, and the
Company undertakes no duty to update this information. More information about
potential factors that could affect the Company's business and financial
results is included in the Company's Annual Report on Form 10-K for the fiscal
year ended June 30, 2002, including (without limitation) under the caption
"Management's Discussion and Analysis of Financial Condition and Results of
Operations," which are on file with the Securities and Exchange Commission
(the "SEC") and available at the SEC's website at www.sec.gov.
All trademarks and registered trademarks are the property of their owners.
Announces Dismissal of Securities Litigation MOUNTAIN VIEW, Calif., January 9, 2003 -- Pinnacle Systems, Inc. (NASDAQ:PCLE) today announced that the case In re Pinnacle Systems, Inc. Securities Litigation, Master File No. C-00-2596-MMC has been dismissed with prejudice. This securities litigation had been pending against Pinnacle and certain of its current officers and directors since July 2000. On November 19, 2002 the United States District Court for the Northern District of California ruled in Pinnacle Systems favor. No appeal has been filed, and the time to appeal the judgment has now lapsed. J. Kim Fennell, Pinnacle Systems President and CEO said, "The Company expended a significant amount of time and effort defending our position on this matter during the last two years. We are therefore pleased that the Court ruled in our favor and that we can now put this matter behind us." About Pinnacle Systems, Inc.
Completes Acquisition of Steinberg Media Technologies AG MOUNTAIN VIEW, Calif. and HAMBURG, Germany, January 6, 2003 -- Pinnacle Systems, Inc. (NASDAQ:PCLE), announced today that it completed its acquisition of Steinberg Media Technologies AG based in Hamburg, Germany on January 3, 2003. As previously announced, the companies had entered into a definitive agreement on December 18, 2002. Steinberg specializes in digital audio software solutions for consumers and professionals. About Steinberg Media Technologies AG About Pinnacle Systems, Inc. This press release contains forward-looking statements that involve risk and uncertainties within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 concerning Pinnacle's expected financial performance, as well as Pinnacle's strategic and operational plans. Actual results may differ materially from the forward-looking statements due to certain risks, including among others: general economic conditions, including business conditions in the specific markets for Pinnacle's products; the difficulty of keeping expense growth at modest levels while increasing revenues; increased competition; lack of success in timely development, production, and acceptance of new products, including those acquired in connection with the acquisition of Steinberg; the failure to reduce costs or improve operating efficiencies, including those related to the acquisition of Steinberg; the challenges of achieving anticipated synergies in acquisitions; and the ability to attract, hire and retain key employees. All information set forth in this release and its attachments is made as of December 18, 2002, and the Company undertakes no duty to update this information. More information about potential factors that could affect the Company's business and financial results is included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2002, including (without limitation) under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations," which are on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov. All trademarks and registered trademarks are the property of their respective owners, 2001-2002, Pinnacle Systems, Inc.
Scheduled to Release Second Quarter Fiscal 2003 Results On January 21 MOUNTAIN VIEW, Calif., January 2, 2003 -- Pinnacle Systems, Inc. (NASDAQ:PCLE) today announced that it will be releasing second quarter fiscal 2003 results (quarter ending December 31, 2002) on Tuesday, January 21, 2003 after the close of market. A financial conference call will follow the earnings release and will begin at 2:00 p.m. PDT on January 21, 2003. A live audio webcast of the conference call will be available online at www.pinnaclesys.com. For anyone who misses the live call, a replay will be available on Pinnacle Systems website for the following two weeks. About Pinnacle Systems, Inc. All trademarks and registered trademarks are the property of their respective owners, 2001-2002, Pinnacle Systems, Inc. |