Exhibit 99.1

PINNACLE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

	Three Months Ended September 30,
	2003			2002
Net sales	$	70,927		$	68,574
Costs and expenses:
Cost of sales		37,023			30,981
Engineering and product development		10,550			8,263
Sales, marketing, and service		25,265			19,668
General and administrative		5,979			4,810
Amortization of other intangible assets		2,820			3,371
In-process research and development		2,193			—
Total costs and expenses		83,830			67,093
Operating income (loss)		(12,903	)		1,481
Interest and other income, net		326			390
Income (loss) before income taxes and cumulative effect of change in accounting principle		(12,577	)		1,871
Income tax expense		403			450
Income (loss) before cumulative effect of change in accounting principle		(12,980	)		1,421
Cumulative effect of change in accounting principle		—			(19,291	)
Net income (loss)	$	(12,980	)	$	(17,870	)
Net income (loss) per share:
Basic	$	(0.20	)	$	(0.30	)
Diluted	$	(0.20	)	$	(0.29	)
Shares used to compute net income (loss) per share:
Basic		65,086			59,128
Diluted		65,086			62,018

PINNACLE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	September 30, 2003			June 30, 2003
Assets
Current assets:
Cash and cash equivalents	$	62,186		$	62,617
Marketable securities		17,720			18,804
Accounts receivable, net		50,996			55,958
Inventories		43,481			38,086
Prepaid expenses and other current assets		7,146			9,197
Total current assets		181,529			184,662
Restricted cash		16,850			16,890
Property and equipment, net		15,262			14,040
Goodwill		75,668			60,632
Other intangible assets, net		36,147			29,341
Other assets		5,630			5,311
	$	331,086		$	310,876
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	17,688		$	17,146
Accrued and other liabilities		52,175			49,489
Deferred revenue		13,906			10,100
Total current liabilities		83,769			76,735
Deferred income taxes		8,320			7,826
Long-term liabilities		803			158
Total liabilities		92,892			84,719
Shareholders’ equity:
Common stock		360,771			337,593
Accumulated deficit		(128,274	)		(115,294	)
Accumulated other comprehensive income		5,697			3,858
Total shareholders’ equity		238,194			226,157
	$	331,086		$	310,876