Exhibit 99.1

PINNACLE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	December 31, 2003			June 30, 2003
Assets
Current assets:
Cash and cash equivalents	$	53,402		$	62,617
Marketable securities		17,905			18,804
Accounts receivable, net		48,653			55,958
Inventories		43,667			37,280
Prepaid expenses and other current assets		9,662			9,197
Total current assets		173,289			183,856
Restricted cash		16,850			16,890
Property and equipment, net		16,898			14,846
Goodwill		82,755			60,632
Other intangible assets, net		21,057			29,341
Other assets		6,635			5,311
	$	317,484		$	310,876
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	13,870		$	17,146
Accrued and other liabilities		64,487			49,489
Deferred revenue		17,249			10,100
Total current liabilities		95,606			76,735
Deferred income taxes		4,222			7,826
Long-term liabilities		759			158
Total liabilities		100,587			84,719
Shareholders’ equity:
Common stock		367,657			337,593
Accumulated deficit		(158,129	)		(115,294	)
Accumulated other comprehensive income		7,369			3,858
Total shareholders’ equity		216,897			226,157
	$	317,484		$	310,876