Exhibit 99.2

PINNACLE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

	GAAP
	Three Months Ended September, 30,
	2004			2003
Net sales	$	70,542		$	69,343
Costs and expenses:
Cost of sales		39,871			38,316
Engineering and product development		10,115			10,550
Sales, marketing, and service		19,399			22,184
General and administrative		7,076			5,979
Amortization of other intangible assets		1,381			2,735
Restructuring costs		2,435			—
In-process research and development		—			2,193
Total costs and expenses		80,277			81,957
Operating loss		(9,735	)		(12,614	)
Interest and other income, net		508			334
Loss from continuing operations before income taxes		(9,227	)		(12,280	)
Income tax expense		704			528
Loss from continuing operations		(9,931	)		(12,808	)
Loss from discontinued operations, net of taxes		—			(172	)
Net loss	$	(9,931	)	$	(12,980	)
Loss per share from continuing operations:
Basic and Diluted	$	(0.14	)	$	(0.20	)
Loss per share from discontinued operations:
Basic and Diluted	$	—		$	—
Net loss per share:
Basic and Diluted	$	(0.14	)	$	(0.20	)
Shares used to compute net loss per share:
Basic and Diluted		69,043			65,086

PINNACLE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	September 30, 2004			June 30, 2004
Assets
Current assets:
Cash and cash equivalents	$	46,443		$	61,299
Marketable securities		16,903			10,955
Accounts receivable, net		39,672			42,168
Inventories		44,876			47,162
Prepaid expenses and other current assets		6,374			8,727
Total current assets		154,268			170,311
Restricted cash		16,850			16,850
Property and equipment, net		16,031			17,223
Goodwill		73,612			73,276
Other intangible assets, net		15,029			16,298
Other assets		8,205			7,789
	$	283,995		$	301,744
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	12,562		$	18,283
Accrued and other liabilities		50,849			56,898
Deferred revenue		15,825			13,909
Total current liabilities		79,236			89,090
Deferred income taxes		1,786			1,972
Total liabilities		81,022			91,062
Shareholders’ equity:
Common stock		377,215			375,550
Accumulated deficit		(179,418	)		(169,487	)
Accumulated other comprehensive income		5,176			4,619
Total shareholders’ equity		202,973			210,682
	$	283,995		$	301,744